House flipping is the art of buying a property, renovating it, and selling it for a profit. It is an enticing venture for many real estate enthusiasts, but it is not a fool-proof investment strategy. To maximize your returns and minimize risks, it's crucial to steer clear of common mistakes that can plague novice and seasoned flippers alike. Here are some tips for aspiring house flippers:
- Make sure you keep location in mind, not just the property itself. Steer clear of a cheaper property in a bad area, because "you can invest all the money in the world into making a home spectacular, but if the house is in an undesirable location, you’ll have a tough time finding a buyer. Remember, you never want to have the most expensive home on the block" (HGTV)
- Make sure you have interior design acumen. Skilled Trades College of Canada writes, "No matter how well-renovated a home may be, you’re likely going to struggle to flip it unless you know how to make it look pretty. While you don't necessarily need to be a professional interior designer, you should brush up on some basic design elements. Design is at the heart of the billion-dollar home renovation industry. "
- Make sure to choose the right partner. As HGTV notes, "Flipping houses might seem like a fun project with friends, but you’ll quickly discover how stressful the work can be (and the strain it can put on a friendship!). If you intend to flip homes with a partner, it’s so important to work with someone you know well and trust. Before starting your flip, you should both outline what you intend to put into the project, and what you both expect to get out of it. And check in regularly to ensure there’s transparency as the project moves forward."
- Make sure you have the right connections. After all, "networking is something all successful home flippers have mastered. When you take on a home flipping project, you will need to utilize your networking powers from the start of renovation to the sale. The people that should always be present in a flipper's network include other real estate investors, wholesalers, real estate agents, contractors, sub-contractors, and an accountant" (Skilled Trades College of Canada)
House flipping requires a ton of up-front work, but the payoff can be spectacular! Looking for your next handyman special to flip? Contact Ken Richter today at 403-630-6363 or Ken@KenRichter.com