5 Key Tips for New House Flippers

[Bryce Langford]

Jumping into your first house flip? Here are five crucial tips to help you stay profitable and avoid costly mistakes:

1. Buy Smart, Not Just Cheap – In today’s market, finding deep discounts is tough, but focusing on properties with value-add potential is key. Look for homes where strategic renovations will create the biggest equity boost.
2. Leverage Hard Money Loans (HML) – Don’t let lack of capital hold you back. Hard money loans can help fund your purchase and rehab costs, allowing you to scale faster. Just be sure to factor in interest rates and fees when running your numbers.
3. Know Your Numbers – Accurately estimate rehab costs, holding costs, and selling expenses. A miscalculation can eat up your profits fast.
4. Speed is Key – The longer you hold the property, the more you pay in interest, taxes, and utilities. Have a solid rehab plan and execution strategy.
5. Expect the Unexpected – Always have a contingency fund (10-15% of your budget) for those surprise repairs.

Flipping can be a game-changer if done right. Have you used HML for your flips? Share your experiences in the comments.
 

If you'd like help understanding your REI potential lets connect!

[Andy Sabisch]

Hard Money loans have been the downfall of many new investors.  The fees and overall costs of these loans needs to be a key factor including what if the project goes over time . . . . you can be underwater in no time.

Underestimating repair costs and overestimating ARVs based on Zestimates are the next stumbling block.

There's money to be made but make sure numbers all work WITH contingencies defined and overages expected . . . remember, a project will always cost more and take longer than initially thought!