For many people, flipping houses is a great business; it’s flexible, lucrative and often very enjoyable. It’s no surprise that many people take it up once they’ve paid off or inherited their first house. However, there can be all manner of difficulties along the way. Let’s take a look at some of the most common problems and how they can be overcome.
Expensive Labour Costs
In some areas, the cost of hiring good workmen can be extremely expensive. Whether they’re simply painting and decorating, or are making a major renovation, the expense can have a significant dent in your profits. The very best way of combatting this is to be able to do as much work as possible yourself. Consider going on courses or attending classes that teach you all of the basics. It may take some time and money to start with, but it will pay off in the long run. Ideally you only want to be paying for work that there’s just no way you could do yourself – the little things should be a simple job that cost only your time.
House that Won’t Sell
Even those who have been flipping houses for decades can find themselves with a property that just won’t budge. Sometimes it’s not their fault, and it’s simply a case of the current market not being right. Money being tied up in a property is not a good thing when you’re running a business, so you need to shift things quickly. Often in this case, it’s better to look for a company that will buy the property from you rather than waiting for a private buyer. You might not make as much money, but you’re likely to profit in the long run, as you can move on to other houses.
Any house flipper that’s been involved in the industry will undoubtedly have a story to tell about a house they bought that didn’t quite turn out to be what they thought. Whether the building has major structural problems, or something less critical, it can happen to anyone. The only way of getting round this is by doing proper research beforehand. It can be tempting to get great deals at auctions without first seeing the property, but this can sometimes end up being very expensive rather than profitable. Getting the opinion of a surveyor is generally a good idea too, if you’re not absolutely confident about the state of a house.