The old 16th century English proverb states,

“If wishes were horses, beggars would ride”, it suggests that if wishing could make things happen, then even the most destitute of people would have everything they wanted.

I would have to concur that this pervasive mindset is found in many amateur investors when it comes to thinking that they will most assuredly make money on flipping a house.   There are many factors to take into consideration when renovating a dilapidated home and hoping to come out the other side with a great financial return.  Sellers along with their listing agents are well aware of the buyers desire to build “sweat equity” and “buy it right” so much so, that they know just how to set a listing price and lure you in to making an offer; usually along with a host of other like minded buyers and in the thrill of the chase you may end up with the property, but had to pay more than you wanted to.

Had you really taken into account and considered such questions as:

  • Which renovations am I really going to tackle?
  • Know the exact costs associated with the renovations I want to do ?
  • What really is the most money I can expect to sell for in this area and do I really know the area that well?
  • In Flipping a home how long will it realistically take me to do the necessary renovations and carry it to sell it?
  • If the market shifts under my feet, have I seriously thought about an exit strategy?

With any new venture, just the sheer excitement and exhilaration of making a move can seem like a great decision, but it may turn out instead to be a costly mistake.  So what to do?

A great strategy for risk mitigation would be to heed these wise words, “Plans fail for lack of counsel, but with many advisers they succeed” (Proverbs 15:22)Make sure to work with a REALTOR® well versed in all aspects of this type of transaction.

Make sure to work with a REALTOR® well versed in all aspects of this type of transaction. Have they been successful at doing it themselves?

The Pelletier Brothers Team has many years of experience locating these type of properties, renovations and the re-selling of the houses. Interested in knowing more, contact them and they would be happy to help you learn the process.  Truly experience an outcome that will thoroughly satisfy you.

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