Build A Construction Buffer
Construction is a major part of any flip process. Some would argue that it is the most important part. One thing we see with newer flippers is that they tend to not build in a buffer for mistakes or unknowns they can bump into. This mistake is a big one because even the most experienced flippers build in for these items knowing that they could open up a wall and find a surprise. If the project goes seamlessly and you are right on budget, the worst case scenario is you pocket the buffer as additional profit. If you don't build in for the buffer, you are going to be borrowing from your own account, friends or family to finish the project. It doesn't take much to build in the buffer and most deals still work quite well with the anticipation of the potential unknowns. Don't short yourself and avoid a bad situation by simply accounting for the potential problems.
Ian Walsh
215.839.3271
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