1.) Donâ€™t Try to be Original â€“ No one was flipping homes in this style or price range. I thought being the only one with a higher end flip would make it easier to sell. It didnâ€™t.
2.) Donâ€™t be the Hero â€“ As I mentioned earlier â€“ this home would have made an incredible rental property. The 2% would have easily been met and Iâ€™d be collecting hundreds of dollars per month in cash flow right now. Instead, I tried to turn it into something it wasnâ€™t simply because I wanted to make something beautiful.
3.) Size Matters â€“ Donâ€™t make the same mistake I did. A house 3x bigger than normal costs 3x more and takes 3x longer than normal.
4.) Listen to Your Lenders â€“ My hard money lender has been in the game a lot longer than I had. When he refused to fund it, I thought he was crazy. Now I see why. Listen to your lenders â€“ they probably know what they are talking about.
5.) Have a Plan Before Beginning - The more I did to this house, the more I wanted to do. I doubled my budget because I wanted it nicer and nicer. I should have had an exact plan and stuck to it. Donâ€™t improvise.
6.) Donâ€™t Do All Your Own Labor â€“ When planning the budget for this project, I planned on doing most of the labor myself. Again, not realizing the size, this became overwhelming. Maybe I can swing a hammer, but as an investor, my strengths lie in the numbers, in the deal making, and in the management â€“ not in the construction. I should have budgeted for a construction crew to come in and take care of this thing.
7.) Speed Matters â€“ Additionally, the handyman I hired to work with me was good and relatively inexpensive â€“ but he was slow and the house was large. I should have had this home remodeled in 3 months and on the market, but instead we crawled along slowly for months and months. I missed the â€œsummer selling seasonâ€ the first time around, which was a major contributor to my 12 month selling season.
8.) Know Your Market â€“ My market was incredibly slow during this time. My house flip was not the only one that sat for so long. Many houses sat for 6, 9, or 12 months trying to sell. The inventory was too high, the credit market too dried up, and the buyers too fearful. I probably should have purchased this, rented it out for a few years, and worried about â€œthe flipâ€ later on.
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Highest and best regards.
Vincent Paige |REALTORÂ® | RE/MAX Showcase
Major, U.S. Army (Reserve)
Certified Broker Price Opinion Registered Agent (BPOR)
Florida Military Specialist (FMS)
8934 Conroy Windermere Road | Orlando, FL 32835
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