5 Signs You’re Entering Into a House Flipping Disaster

In today's video, we're going to talk about 5 signs that you're entering in a house flip disaster. Coming up next. Are you looking to live the life you've always wanted through real estate? I'm Joe Homs. I made this channel for the new and experienced investor. Make sure that you like and subscribe. 5 signs that you're going into a house flipping disaster. Number 1, you base your after repair value on Zillow and Zillow alone. And my gosh, please, they tried to flip and they've lost their pants at this point. So for you to rely on their after repair value is really a big mistake. You need to get information from other sources, hopefully a very experienced real estate agent/investor that is in the market and knows what they're doing to give you that correct after repair value, because that's really important, especially in this market that's going down. You want to make sure that if your after repair value right now is this amount, I am basically putting in a buffer of anywhere between 5% and 10%. Because the market is going down. Number 2, you're trying to flip a house alone. It can be done, okay, as long as you have your team in place— real estate agent, contractor, insurance person, everything that you need to flip the house, all your subcontractors. You can do it on your own, but it's always best If you have somebody there that's done it before, that's experienced, that you can rely on, giving them a call, asking them a question, and moving forward with the project. Remember, the, the game about flipping is getting in and out as soon as possible. So you want to buy it, you should have that contractor there the next day working on the project. Have it done within a reasonable amount of time. Put it back on the market, sell it, move on to the next one. Okay. And there is a process that you need to learn about who goes in there first, demo, and then who comes after. Okay. You have to put windows, flooring, painting, all that stuff. You just can't send in one con— let's say a painting contractor before you do the demo. So you have to kind of know what the order is. Number 3, you've invested all of your life savings into this flip. And believe it or not, I hear that pretty often. And I get calls, Joe, you know, I've basically spent all my money. I don't have any money left and I still need to, you know, do another $10,000, $20,000, $30,000 on this project. What am I going to do? Okay, so make sure that you have your numbers correct. Make sure that you have a buffer at the end of the day. Make sure you have a Plan B in case Plan A falls apart. Okay, so make sure that you have enough funds to finish the flip, close on it, and then move on to the next one. Do you like real estate videos? Let me know in the comments below. Give it a thumbs up as well, and don't forget to subscribe. Number 4, you're managing the rehab without any experience. You need experience for everything that you do in life. I, I mean, I can't be a surgeon unless I go to school and educate myself to be a surgeon. I can't be a rocket scientist unless I go to school. Well, the same thing with flipping. You need to go to a school, a mentor, somebody that has done it in the past to be able to give you a plan of action so that you follow that plan of action and move forward. Number 5, your gut is telling you otherwise. Okay, depending on how old you are, The older you get, the more life experience you have. And if your gut's telling you, like, don't do this, you probably should listen to your gut. Okay? So make sure that whatever it is that you're doing, maybe you check it out with somebody else. Get on the internet, see what everybody else is saying about that particular subject. And before you take action, before you pull that trigger, Make sure that you're right. What warning signs have you seen but maybe ignored? Let me know in the comments below. Investing in real estate comes with a lot of fear, but with a few tips, you can easily overcome it. If you want to see more flipping videos, click on this video right here. If you have any questions, please don't hesitate to reach out. I'm always here to help.