Every person who takes a chance on house flipping is going to make their fair share of mistakes. At Zinc Financial, we have advised both new and experienced investors out of a number of common mistakes. In our opinion, here are three of the worst mistakes house flippers can make:
- Not doing enough research.Too many investors limit their search criteria to such specific locations or price ranges that they only end up looking at a couple of houses before diving in and making a purchase. It’s essential to take your time and perform in depth market research before choosing the ideal investment opportunity. This process can be long and tedious, but it will help you find the best possible investment opportunities and limit the chance of making a poor buying decision.
- Not getting a big enough loan.Residential rehab loans are designed to help you both purchase a house to flip and to make the necessary renovations on that house before you turn around and sell it. Underestimating the costs of renovation or overestimating the ROI of certain changes are both very common mistakes. Your loan advisor can help you examine the property you are interested in to determine exactly how big of a loan you should take out and what renovations you should consider.
- Making investment decisions based on fear.This is a particularly prevalent problem among new house flippers. When making big decisions like which house to invest in and what renovations to pursue, it’s easy to let fear get the better of you and to take the easy route or the safe route. The problem with this is that the “safe route” is usually the least lucrative. If you let your decisions be governed by a fear of failure, you’ll almost certainly make poor decisions that will kill your investment.You can protect yourself from the fear of making poor decisions by working with experienced rehab loan lenders. At Zinc Financial, we thrive on the opportunity to help new investors learn the ins and outs of the business and point them towards wise investing decisions. We’ll work with you through every step of the process to help ensure that your first house flipping experience is a positive one and a lucrative one.
To enlist our expertise, call (888) 552-6637 to receive information regarding our rehab loan programs.