Flipping Your First House? 3 Important Tips To Consider

Why You Still May Need a Good Contractor

While networks like HGTV and DIY Network glamorize the house flipping movement, many budding entrepreneurs are finding out the hard way that life often is a lot more difficult than a TV show. They see stunning transformations and the TV stars boasting about the profits they make flipping homes, and decide that they have what it takes to make money the same way. Unfortunately, many get in over their heads quickly, and soon learn that their own home improvement skills are no match to those of their local general contractors.

If you are considering flipping a home, here are 3 top tips to consider so that you do not end up as an entrepreneurial cautionary tale:

  1. Do you really have the time? Even if you have some DIY skills, house flipping is a numbers game with time being the biggest factor. If you try and save money by doing it all yourself, you could end up accomplishing the exact opposite. Every month you carry the property incurs costs, so if you can only devote weekends to a project, you most definitely will end up losing the money you thought you were saving. You would probably do better getting general contractor services to manage the project while selecting tasks you know you can accomplish in a timely manner.

  2. Are you too focused on a big profit? The biggest mistake flippers make is to hyper-focus on their desired final profit goal. This can lead to less-than-ideal decision-making, such as avoiding inspections/proper permitting, taking bad shortcuts, or selecting substandard materials. You also need a budget that has a contingency fund, because you will have unexpected expenses, and your reputation will suffer if you try to cut corners in the name of profit.

  3.  Do you really have the knowledge and experience to know what is right and what is wrong? If you hire subcontractors, you need to know whether they are doing their work correctly and to your standard of quality. For example, one bad roofing company can cost your flip thousands if their substandard work fails to pass a sales inspection.

As experienced contractors in residential and commercial construction, Ranjo Contractors knows that house flipping helps restore communities. If you are getting started in our own endeavor, we encourage you to contact us for help. You want your first project to be beautiful, quality, and ultimately successful, and we can help take you from beginner to confident investor with every flip you undertake.