Top 5 Reasons Fix & Flips Fail | Do Hard Money

Flipping a home may seem like a quick and easy way to earn money, but every house flipper knows you certainly work hard for your profits. In truth, most fix and flips fail due to the competitive market and how tough a job a flip home can be to tackle.

Only the most skilled and determined house flippers actually come out ahead, meaning every investor should seek out the tools they need that will ensure they make a profit. Here are the top 5 reasons fix and flips fail. Avoid these pitfalls, and you’ll be on the path to success as a house flipper:

1. Not Enough Funds

Most house flippers don’t plan a realistic budget, so they don’t end up profiting from their endeavor. Wise investors should expect the unexpected, since every flip is bound to have some things go wrong. Make sure your budget includes things like:

·       Going well over the scheduled end date

·       Finding expensive fixes in the home, like mildew or termites

·       Needing more money for closing costs

·       The house sitting on the market

2. Fixating on One Property

It’s best for investors to not get emotionally invested in one property. Those who do tend to get fixated on one home and start to believe it’s the one and only property that will lead them to a life of success and riches. Be realistic when running the numbers. Our Advanced Deal Analysis software will help you make smart decisions about when and where to invest.

3. Only Making One Offer

The best investors will always have a slew of homes on the table, meaning they’re making multiple offers at once. As a new house flipper, this may seem overwhelming. But it doesn’t need to be. Just turn down an offer if multiple deals go through at once, then stick with the most promising deal.

4. Evaluating Poorly

The key to success as a house flipper comes in understanding property value. If you understand this, you can step away from any bad investments and then hit the ground running with the good ones. The Complete Fix & Flippers Guide to Valuing Properties can help you hone this important skill.

5. Not Knowing Enough About the Industry

Though just about anyone can start flipping houses, it doesn’t mean everyone should. A successful investor takes the time to learn the ins and outs of the industry before getting their feet wet. Do Hard Money offers extensive training to help you learn the basics and enjoy the fruits of your labor.

Get Pre-Qualified Today

Along with our expertise and training courses, Do Hard Money also has the funding to launch your fix and flip. Contact us to get pre-qualified for a hard money loan today. As any Do Hard Money reviews will tell you, we’re a reliable lender helping you achieve your dreams as a house flipper.