House Flipping Mistakes That Can Cost You

August 1, 2012
Like any business there are learning curves to flipping houses. People rush in and chase after the high rewards without fully understanding the high risks involved for a new comer. Many people look at flipping houses more as a form of gambling rather than investment, but I suggest you treat it as the latter if you plan on staying in the business.

 

1. Not having enough capital.

Image: Nicholas Rigg/Getty Images

Every day I see people putting For Sale signs in the ground before a property is ready to show. Most investors are eager to get the property on the market and they are hoping for offers to start pouring in even though they are only three quarters done with the project. Don't fall for this mistake. You have one chance to make a first impression so make sure your house is show room ready. Walk through your own house 5 different times and encourage others to do it with you to look for any imperfections or issues a buyer might raise. When there are no more issues (no matter how tiny to resolve), then put the house on the market and you will be surprised how you will set yourself apart from the competition.

Got questions? Check out the Flip Men page or follow up with Mike and Doug directly on Twitter @Demo_Doug @FlipManMike and by using #FlipMen. Don't forget to tune in to the season premiere of Flip Men with back-to-back new episodes on August 5 at 10/9c.

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