Time. The one factor that many “Fix and Flippers” fail to manage effectively is the time it should take to complete a task (or series of tasks) and the amount of time it actually does take to complete those task(s.) Time IS money, especially when you are borrowing money from a Private or Hard Money Lender.
Extra hours on a few tasks become an added day, an extra day soon pushes into another week, and another week will push into an extra month. That’s another month of interest accruing on your borrowed money, another month of property taxes, another month of vacant property insurance (more expensive,) another month of electricity, heat, etc.
If there is something you don’t know how to do well, hire someone who does. A mistake could cause damage, it will take more time to correct and will cost more money.
Plus, the longer you hold onto a property that you want to sell, the odds (although slim) increase that something could happen and work against you. A weather calamity could damage the house, a winter with snow could prevent laborers from showing up at work, the market could change, and on and on. In short, the longer you unnecessarily hold on to a property the greater the odds become that “if something could go wrong it will.”
Before considering a “flip” you need to have everything buttoned up nice and tight. Your team of tradesmen and laborers must be ready, willing, and available to work for you when you need them to. Make sure that you have access to all of the construction materials that will be necessary.
Know what the market wants and deliver it to them market in a timely fashion. The best way to know the market is to get a full time, experienced REALTOR® in your community. A full time, experienced REALTOR® will have the answers to questions you don’t know to ask; and that will
Lastly, be prepared to manage the project. You must to go to the property twice daily if you are not going to be working yourself. Flipping is not easy but it can be rewarding and gratifying.