Flipping houses or condos is a great way to make money. Unfortunately, it is also a great way to lose money. Hopefully your mistakes in the beginning will not cost you so much you never try again. If you break even on your first one you are doing better than most. Having a background in construction definitely helps. There are 2 common mistakes people make when flipping properties. First, they think that because they like something everyone will like it. When making decisions about colours or finishing what you like should be irrelevant. The question is what do most people like. You are doing this to make money. You want to make decisions based on, "What will appeal to the largest pool of buyers?" The second mistake that would-be investors make is they don't consider the "spread". The spread is based on 3 questions. What can you buy it for? How much will it cost to fix it and make it pretty? And finally, what can you sell it for? You also need to know what contingencies to work in without talking yourself out of a good deal. Flipping houses can satisfy your creativity and be a ton of fun. But at the end of the day if the spread is not there don't don't buy it.
The 2 biggest mistakes when flipping properties...
- September 29, 2015