subject: How to Fail Miserably When Doing Rehab Houses [print this page] How to Fail Miserably When Doing Rehab Houses
The business of doing rehab houses is perhaps considered a trial-and-error venture by many. They do as they wish today, realize it's a mistake tomorrow, and learn from it the next day. But with the money involved in rehabbing houses, you just can't afford to try various things without ruining your repair budget. Because of such, there are certain mistakes that might make you fail in this business fail so miserably that you might not be able to get up anymore. So you want to fail fixing and flipping homes? Do any of the following things:
Skip a professional inspection and appraisal. If there's one thing that could probably totally destroy your chances of getting out of deal richer, it's buying the wrong house. Ever seen 1986 "The Money Pit" starring Tom Hanks? He buys a mansion for an insanely cheap price thinking it was a bargain deal but later realizes that the property needed a significant amount of repair just to make it livable. Don't fall into the same pit. Hire a professional home inspector and appraiser when you check out a property. Make sure the inspector details all the repairs you'll need. Make sure the appraiser takes into account the repairs when valuing the property. Remembers, in rehabbing houses, you make money when you buy, not when you sell.
Cover up serious repairs. If in case you already bought a money pit, what can you do? There are a lot of things you can do like seek additional financing although one thing that you should not do is cover things up. You think you can ask the contractor to patch wall huge wall cracks and cover them with paint? This is considered irresponsibility because you are placing the safety of your homebuyer in peril. Sooner or later, those problems will surface and people will discover your secrets. You'll lose your credibility as some who does rehab houses. Or worse, you can go to jail.
Buying without ready financing. Here's what could happen to you if you do this when you rehab houses: You used your last money to get an assignment contract for the property, even if you knew that you still haven't talked to any lender. You then borrow money from friends to have the contract's validity extended. Unfortunately, banks are taking more time processing your loan. Your local private lenders on the other hand already have deals to fund. You lose the deal, your deposit, and you now have more debt.
Want more career-saving tips when rehabbing houses? Go to the online authority. Go to Rehab-Real-Estate.com now.
