One of the best advice I got when I first learned How to turn a house over It had nothing to do with which house to buy. It was all about which house to buy.
It’s a great way to invest in real estate and make money, as much as flipping a house. Avoid bad deals Most important to your success.
However, some people take this to the extreme and paralyze them because this fear of making bad deals does not make a buy, sell, or investment decision.
Fear, disgust, home flipping
Undoubtedly, one of the biggest things to understand when first learning how to turn a house over is to overcome fear first. Fear can paralyze you from doing what you have to do.
even if you say so…A little fear is not necessarily a bad thing – It may sometimes save your skin.This is especially for you Break the rules, Do not follow the formula and make unreasonable decisions. If you stick to the rules, your fear should be dramatically reduced.
Anyway, sometimes they harvest – seemingly out of nowhere. In fact, I have a student we are teaching who had the same problem this week.He was on the verge of making a flip purchase of his first home and I was overwhelmed by the feelings of fear, negative thoughts, and fear of paralysis.
We got him over it, but only after talking to him through it and giving him some way to overcome his fears.He seemed to find comfort in that fact I still have the same fear – In fact, they never seem to disappear. But rather than letting them direct my decisions, I do not guide those fears in a positive way and ultimately stop making decisions that I know will help me.
But even so Fear is healthy – It is most likely the one that kept humanity moving during the caveman era when we were chased by predators who wanted to eat us. So we need to be grateful for having fear – otherwise no one will be here today!
However, you should be afraid if you consistently make the seven deadly house flipping mistakes described here. If you don’t make these mistakes, rechannel those fears and make the decision to choose them.If you notice House flipping rules Is there to minimize the downside risk, or unreasonable fears begin to disappear in the background.
The mistake of flipping the house of the seven deadly sins
1) ARV was determined from an online survey
I have this type of scenario Dear – Also known as Drop Everything and Run! To be honest, trying to measure the value of a home after repairs simply by using online tools and websites is a surefire way to prepare for a disaster.
Don’t get me wrong, sites like: Movoto When Zillow It’s a great place to start your research, but not a good place to end your research. To really see the value of a refurbished home, you need to meet and talk to a local expert realtor.
At the end of the day, a realtor who really knows your area will be your best bet to make an accurate decision. ARV..
2) Use “eraser math” when calculating the 70% rule
70% rule Unless you start using an eraser on your pencil, it will help you make a lot of money.
What bothers some people is that they get excited about turning the house inside out and then try to make the numbers work by adjusting one number here and then adjusting another. You can use the 70% rule to determine how much you can spend on renovation and calculate the maximum offer allowed by the property.
However, if you try to change the 70% rule, you’ll end up with a bad deal and the numbers will “look good” on paper. In other words, trust the formula, not the overly ambitious feelings. This is especially true for beginners flipping home.
3) Start trading without exit strategy
Investing in real estate can be a whimsical adventure. If you buy a house to turn over without developing at least one or two exit strategies, it will come back to pinch you in the ass.
Typical exit strategies I use when transactions are not proceeding as planned include:
- Lease option
- Wholesale to another investor
If you can’t create a potential houseflip exit strategy, we recommend that you don’t proceed with the trade.
4) Trade without a house flipping team
In my experience Turning the house over is a team effort.. Sure, it’s possible to go alone, but in my opinion, going alone isn’t really the best way to turn a house over. no Having a team on your side can increase your chances of failure. Especially if it’s completely new in the industry.
We recommend that you spend at least 6 months deliberately networking with members of the Keyhouse Flip team and establishing mutually beneficial relationships. Know, like, trust:
- Real estate lawyer
- Certified accountant
- General contractor
- Real estate agent
5) You put your life saver on the line
There’s a lot of talk about people at the top who put everything at risk, but do you really want to make it yourself? Can you deal with stress? I know I can’t …
So I’m using to invest in real estate OPM – Abbreviation for “other people’s money”. My recommendation is to talk to people at REIA meetings, go to networking groups, and eventually build relationships with people who are considering investing. Don’t expect people to simply pass on the hard-earned money, but if you can offer a good deal it can be a win-win for everyone involved.
In this way, you do not endanger your retirement or the education of your child.
6) Manage rehabilitation yourself … without clues
This goes back to # 4 – set up a team to turn the house over.
But that doesn’t mean You may live in a house, it doesn’t mean you know how to renovate a house.. If you are not skilled in construction, you risk not only losing a lot of money in the process of rehab, but also the risk of not properly remodeling your home. This can cause major problems for future homeowners.
Fixing and flipping does not mean hitting a new paint on the house and selling it for profit. If you don’t know how to remodel your entire home to code, find someone to do it.nevertheless Contractors can be difficult to work with Sometimes there are a lot of talented contractors to work with you-you just have to find them.
7) Don’t move forward because of irrational fear
Your own fear is a killer-especially when it prevents you from doing what you know is right.I may actually speak Overcome fear of real estate investment There are too many here in Bigger Pockets.But i do it It’s the best thing to stop all my coaching students and anyone I’ve ever talked about turning home over.
But if you’re trying to buy a house to turn over and you feel Horrible illness in your stomachThen something is wrong.
There is a difference between overcoming fear and simply ignoring it.
Overcoming fear takes place in the months before buying a home to turn it over.You are working on your spiritual game by reading books like Think and grow affluentlyAnd act on it Afraid to conquer The advice you are reading. In this way, you can instinctively know when it’s time for you to leap and buy a home. Butterflies are good – shivering knees are not.
If your knees are shaking and you feel like you are about to throw, just admit possibility That you may be overhead. Stay away from trading and spend some time on your inner game.
Then go back and check this list here.Go through all the great resources About flipping a house here at Bigger Pockets.. If you check this list and haven’t made these deadly house flipping mistakes, you’ll probably need to pull the trigger to do it.
Did you get this far? Please leave a comment below! What do you think? Ask the question you want or make some comment on this list … Did I miss something? Please comment below and join the discussion.
Photo: seyed mostafa zamani