If you are looking for a new venture into the flipping business, we hope you have a business plan ready. We’ve worked with many successful flippers trying to play their hand at a very lucrative business opportunity. We can tell you that the most successful flippers that have secured real estate loans with us have been highly organized. Not only do they have all their paperwork ready to submit, but they have the contractors ready. We’ve seen this time and time again throughout Fort Myers, West Palm Beach, North Miami, Fort Lauderdale, Boca Raton, Coral Springs, and Deerfield Beach.
The rehab is one of the main ways a house flip goes wrong. There are other ways the intended pricing may not work – the market changes or other uncontrollable forces. But getting the rehab done correctly is entirely in your control. Say it out loud, say it again and own it. You are using real estate loans as an investment. It is your business, and you must be in charge of the rehab because it’s your livelihood on the line.
When asked in a Facebook group what is the most significant mistakes rookies make, many said it came down to the rehab. Many comments were about adding an additional 30% to the budget. This seems fair. If you need it, it’s there. If you don’t need it, it’s pure profit. Some people mention an extra $10k, but this hardly seems enough for large projects. Others say to double your rehab budget. Budgeting correctly takes time, and a lot can depend on your contractors, leading us to our next most prominent example of rookie mistakes.
Everyone has a story about working with contractors when things went bad. Remember that time is ticking on your real estate loan, so getting the right contractor can make all the difference. One person said that hiring yourself to do the work was the biggest mistake. Usually, you’ll have teams doing work simultaneously. By doing the work yourself, you’ll lose that along with some of the professional aspects of craftmanship. You want a big profit? Bad tiling and shoddy drywall work are not going to get you there. Some other tips on contractors were buying the materials yourself and paying for the labor, and hiring good contractors, even if they cost more.
At Graceful-Lending, we want the long-term relationship with our clients, which means their success is our success. With over 130 lenders and the best pricing, we know you’re not going to find a better deal for real estate loans. When you’ve done the numbers, have a house under contract, and a solid business plan, the next best step for success is coming to Graceful-Lending for your real estate loans. We help investors throughout Fort Myers, West Palm Beach, North Miami, Fort Lauderdale, Boca Raton, Coral Springs, and Deerfield Beach.