Myths about house flipping from a real estate professional
June 26, 2018 | Tabitha Kontur
Myth #1 - You don't need any construction or real estate experience just sign up for this course. I have seen numerous wannabe investors drink this Kool-Aid and end up losing their shirt on their first few deals. In order to be successful you must be willing to put in some sweat equity and partner yourself with professionals that understand the complexities of construction and real estate then listen to them. You must learn from the professionals you hire and take lots of pictures and notes and above all else make sure you have an inspection if you don't have extensive construction knowledge.

Myth #2 - If they can do it on HGTV we can do it to. It's not as easy as TV makes it look. You can't always just put lipstick on a pig. While granite counter tops are nice it is not the only thing that sells a house. Cutting corners shows and even if the buyer doesn't notice it their inspector and appraiser will so you will end up having to do it in the end anyway. It is always less expensive to handle issues during the demo phase of the project and this is where listening to your professionals is so important. A home that is done correctly is so much more important than high end finishes hiding issues. Again, this is where a good home inspection is critical.
Myth #3 - I can get rich quick. Those profits they show on TV don't include carrying costs, marketing expenses and commissions paid so make sure you are looking at the whole picture and know your budget but have flexibility. Final words of wisdom from an experienced real estate broker married to a 25 year contractor and flipping extraordinaries...always leave a 10% fudge factor. There will be surprises. ALWAYS!
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