With the publicity that flipping real estate receives, it is understandable that many people are flocking to an investment that they are often told is easy to do and a great way to make quick money. While this can be the case, there are many pitfalls that need to be avoided in order to make money from flipping homes. These include not having a clear plan before jumping into flipping, not properly determining how much needs to be spent on repairs, and how long any repairs will take. 

Many novice investors will jump into flipping a property without having a proper investment plan in place. This is a must if you are going to make money flipping real estate. In fact, it¡¯s a must for any venture that you plan to profit from. Your investment plan must provide you with a clear idea of:
1. How much the property is going to cost up front.
2. How much will have to be spent on the property.
3. How long any repairs will take.
4. The maximum cost of any repairs that need to be made.
5. How soon the contractor can start repairs after purchasing the property.
6. How much any marketing or real estate commissions will cost when the property is sold.
7. How much you need to get for the property in order to make your desired profit from flipping. 

If you have a clear idea of this information up front, you will know whether the property will be a profitable investment and you will be much less likely to suffer unexpected problems. 

Real estate flipping is an investment, and as such there are risks involved. However, with some planning, you can reduce these risks and enhance your chances of turning a profit from flipping a house. One of the risks that can often occur involves any repairs that may be required in order to get the property ready for flipping. 

If the house only needs minor fixing up, you may be able to do this yourself. If you decide to do this, make sure you are capable of doing the job properly and efficiently. If you get half way through and realize that you need to get professional help, then your profit margin from flipping will shrink straight away. Determining the nature of the repairs required, including what you can do yourself, how much they will cost and how long they will take to complete is a vital aspect of making money flipping real estate.

If you need to hire a contractor in order to complete the required repairs, go with somebody you can trust. If you do not know the contractor, find out a little about them before getting them to start any work. Find out whether they can start straight away, whether they have the required skills and experience and settle on a price and completion date up front. Also, it¡¯s a good idea to get some references before hiring them. Ask the contractor to refer recent customers to you and talk to them. And remember, you really need to organize this before you close on the property. 

Another pitfall to avoid when flipping a house is problems associated with selling the property. Taking too long to sell your property will also have a negative effect on your profit. As soon as you close on the property, you should list it and start your marketing of the property. Don¡¯t make the mistake of waiting until the property has been repaired. Also, engage the real estate agent early on and have a clear idea of the price you need to get for the property and stick to it. You can avoid any disappointment here if you have a clear understanding of the property¡¯s value before you purchase the property for flipping. Remember to include all marketing and agent commissions into your original investment plan so that you have a clear idea of the total costs of your investment. 

By having a clear understanding of all the elements of your investment before you even close on the deal, you will vastly improve your chances of making money flipping real estate from your early deals. As you gain more experience flipping real estate, these will become second nature to you. While you are starting out however, you need to make a conscious decision to follow these guidelines if you want to make money flipping real estate.

 

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