Popular TV shows have brought it to everyone's attention money can be made flipping property.
The fact is flipping a property can be a risky proposition. Here are some common mistakes flippers make:
-Overpaying - No matter how promising the property may be, if you don't buy right, you'll lose money on the resale. That's where I can help you.
-Lacking Cash - Desperation makes investors do crazy things. When you act in haste, you're more likely to make poor decisions.
-Quitting Your Day Job - A steady source of cash staves off desperation.
-Hiring Unlicensed Contractors - Not only do they present an insurance risk, but worse yet, often they don't get the job done.
-Buying Too Many Properties Too Fast - Too much money, too little time.
-Underestimating Remodeling Costs - There's no such thing as a cheap and easy fix.
-Having a poor exit strategy - Running out of cash and living on credit cards doesn't work.
I work with several investors -- some buy and hold, some flip and some do a combination. I've learned a great deal from them. A successful flip depends on knowing what you will repair/change in the property; having a good idea about the costs of those repairs and changes; and, having a reasonable idea of the price a buyer will pay.
If you'd like more information on flipping or if you'd just like to think out loud with someone, give me a call at 912-856-0953 or e-mail me at marti@martistein.com.