You want to flip properties because you think it’s the fastest way you can generate income from real estate. There is no doubt about the fact that house or property flipping generates outcomes faster, but are you guaranteed to make great returns? Well, there are no promises or guaranties in investments no matter what type. Anton Senderov specifically points out new investors by saying that they should never start flipping properties right from the beginning to make a lot of money overnight.
To make money quickly in real estate, you have to take bigger risks. According to Anton Senderov, “When you are flipping properties, you are not only taking bigger risks, you are taking those risks frequently.” So, while keeping in mind the seriousness of this type of investment, here are the 3 mistakes that Anton wants you to avoid while flipping properties.
Don’t Be Casual with Calculations
Don’t ever make the mistake of calculating your profits casually. In fact, the bigger mistake that many people make is that they calculate their costs casually. You can keep an eye on the profits, but you can’t really get to them unless you are able to cover the costs well. Every expense you make out of your pocket is taking a chunk out of your return. Don’t make the mistake of calculating how much you can invest in the property. Anton Senderov says, “A lot of investors make this mistake of calculating how much they can invest when actually they should be focusing on how much the property needs invested.”
You could invest millions of dollars on a property if you want. However, what you have to look at is the expense that would generate the best return for you when you sell the property back.
Don’t Buy without Knowing the Neighborhood
It can be quite enticing to see an ad on the internet of a property that seems to be selling at much lower than it should be. You look at the pictures and the property looks neat and pristine. You look at the price and you are like, “O God please make me be the only one who is looking at this property right now.” Well, the problem here is that many other investors have looked at this property but they don’t want to invest in it. If they are not willing to invest in it, you have to know why. One of the issues is that the neighborhood is not the best in terms of investment.
People move into a house not to protect themselves from rain and sun only. They want a house to live a life, and living a life is not possible in a place where there is a high crime rate. What if amenities are not located nearby? If those things are true, you are going to have a hard time convincing people to buy this house from you.
Don’t Buy without Physical Inspection
There are certain things you don’t want to shop for online and the house you are willing to purchase and sell is one of those things. It does not matter how much information the real estate agent or homeowner has shared on their online profile, you still have to go and visit the property. In fact, visiting is not enough: you have to inspect the property as much as you can.
Anton Senderov advises that you have to look specifically for faults that can cost you a fortune. If you find those faults, don’t even try to convince yourself to buy such a property.
Everyone wants to make money but it is easier said than done. If you want to be a real estate investor, you will have to learn from the best. At the same time, as an investor, you will have to start with a small investment. Don’t ever put your entire life’s savings on the line no matter how great you think the opportunity is.