top of page

Top 5 Mistakes that Investors Make when Flipping a Property

Based on industry research and common knowledge, here are the top 5 mistakes that fix and flippers make:

Mistake #1 - Overpaying for a Property:

One of the most common mistakes made by fix and flippers is overpaying for a property. This can significantly decrease the potential profits of a flip, as the cost of purchasing and renovating the property can quickly add up.

Mistake #2 - Underestimating Renovation Cost:

Another mistake that fix and flippers make is underestimating the cost of renovations. This can lead to budget overruns and unexpected expenses, which can eat into profits or even result in losses.

"Trial and error does not work in real estate. It's way too expensive to learn from your own mistakes, you need to learn from others' mistakes." Scott McGillivray

Mistake #3: Not Having a Solid Exit Strategy

Many fix and flippers fail to plan their exit strategy before purchasing a property. Without a clear plan for selling the property, they may end up holding onto it for longer than anticipated, which can result in additional holding costs and decreased profits.

Mistake #4: Cutting Corners During Renovations:

In an effort to save money, some fix and flippers may cut corners during renovations. This can lead to shoddy workmanship and lower-quality finishes, which can turn off potential buyers and hurt the property's resale value.

Mistake #5: Over Improving the Property

Finally, some fix and flippers make the mistake of over-improving the property. While it's important to make necessary repairs and upgrades, spending too much money on high-end finishes and features that aren't in line with the local market can lead to decreased profitability.

Investing in Real Estate can be an exciting, but tedious process. There is a lot that goes into finding the right property to fix and flip. Contact us to learn more about strategies to help you gain insight and succeed in flipping investment properties.


bottom of page