What to Avoid When Flipping Houses

House flipping has become a popular hands-on option for real estate investors. However, many investors fail to fully prepare before they begin their endeavor, resulting in a financial disaster.

Don’t Rush the Process

If you didn’t already know, house flipping is a time-consuming business venture. There’s a series of steps that you need to take in order to get through the entire process. First, you’re going to have to find the property that you’re going to flip and perform research to determine whether or not that area has potential – which could take months. Then, you’re going to need to work on fixing it back up, either hiring people or doing it yourself. Finally, during the selling phase, you’ll need to schedule inspections to make sure that it complies with applicable building codes.

Investing Frugally

If you don’t have the necessary funds, then you might not want to begin investing in house flipping. Although some flipped homes can bring in a good amount of money, don’t use that as incentive to jump the gun. It’s an expensive proposition. Be sure that you start with a solid amount of funds to cover costs such as: interest on borrowed money, renovation, and capital gains taxes. After factoring in these costs, you’re going to have to consider the reality of possible breaking even when it’s all said and done. But, by selecting the right property, investing wisely, and staying patient, there is a chance that you’ll see a solid profit margin.

Bio: Kuba Jewgieniew heads Realty ONE Group, a real estate firm that focuses on fostering a unique culture and gives everyone a unique voice.