Flipping a property can be a way to quickly build wealth. As is the case with any investment strategy, it’s always important to stay on top of your game. Even the most veteran of fix and flippers has a story of “that one” property. That one property that took too long to remodel…or seemed like a chance to do some electrical work for the first time…maybe where a contractor up and left on a halfway completed job. Here are some tips to avoid running into that scenario too!
Stick To The Plan
Part of a successful flip is making sure that all improvements are carefully planned and balanced against both time and budget. A kitchen remodel that goes over-budget or takes an extra week to complete could delay the sale of your flip and ultimately cut into your profits. Remember, the objective here is to build what is necessary to maximize the value of the home and your return on investment.
Know Your Limits
Many first time flippers enthusiastically embrace the physical part of the job…demo day always looks the most fun on TV. While a direct approach can cut your remodeling overhead, it can also potentially lead to disaster if you don’t know what you’re doing. Divide your flip into two categories: projects you can complete and those that require you to bring in a professional. Electrical and HVAC upgrades should fall into the latter category, while planting some fresh sod, or painting walls may be things you feel comfortable doing yourself.
Screen Your Contractors
Hiring a professional is only half the battle, you also need to vet anyone you’re thinking about working with. As many property flippers have learned, trying to cut costs by taking the lowest bid can go very poorly. Unfortunately, not all plumbers are trustworthy: some may pocket your down payment and never show up, while others may be late or generally uninterested in meeting your deadlines. Talk to other flippers in your area about who they’ve used and who they trust. A personal recommendation is a great starting point.
If you’re planning a flip for the first time, give us a call at 425-385-9014. Our knowledgeable staff can help you with financing options, and possibly some more pointers to make your first flip a successful one!
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