#8 Things Fix & Flip Investors Wish They Knew Before Starting Their Projects

When equipped with the right knowledge, house flipping can become an incredibly profitable and rewarding investment. While many investors want to be prepared before they dive in, it’s often only through experience and hindsight that they learn to streamline their real estate business.

Fix-and-flip projects can come with their fair share of surprises, and it's not uncommon for investors to feel a bit overwhelmed by challenges they didn't anticipate. To help you navigate your fix-and-flip journey with confidence, we've compiled key lessons from experienced borrowers. 

Related Blog: 3 Mistakes to Avoid When Flipping a Home 

Here are the top 8 insider tips our investors wish they knew before starting their fix-and-flip venture:

#1: You Shouldn’t Rush Renovations to Suit Housing Market Fluctuations

"Looking back, I would have done a more aggressive renovation to the house,”  – Borrower, Atlanta, GA.

Rushing through renovations to catch up with housing market fluctuations might seem advantageous at first glance, but it often leads to compromised quality and unforeseen delays. A common sentiment among seasoned investors is the regret of not investing more time into ensuring their renovations meet high standards rather than just meeting market demands.

Taking the time to carefully plan and execute your renovation can not only increase the aesthetic appeal of the property but also its long-term value. When it comes to fix-and-flip investments, patience and precision are often more rewarding than haste.

#2: Create a Realistic Budget 

“On my next deal, I’m definitely going to make sure that I have a more realistic estimate as to how much the supplies will cost to complete the project,” – Borrower, Atlanta, GA.

One of the most common mistakes that fix-and-flip investors make is underestimating the cost of their project. By creating a comprehensive renovation plan you can ensure that you’re using your resources efficiently and maximizing your ROI.

By mastering ARV calculations, you can confidently set budgets, negotiate deals, and avoid financial pitfalls. A well-researched ARV not only safeguards your investment but also maximizes your potential profits.

#3: How Important It Is to Carefully Select Your Team of Contractors & Subcontractors

“Though it may seem that you can save money on cheaper labor, their price typically coincides with their work and you may end up paying for the same job twice,” – Borrower, Cartersville, GA. 

The quality of your contractors and subcontractors can make or break your fix-and-flip project. Choosing the right team ensures that your vision is realized efficiently and effectively, minimizing costly errors and delays.

To build a reliable team, seek recommendations, check references, and verify credentials. Establishing strong communication and clear contracts with your team will foster a collaborative environment, ensuring that everyone is aligned with your project's goals.

#4: How to Master the Art of Quick Decision Making

“Looking back on the project, I wish I had implemented better time management strategies to finish the renovation faster,”  – Borrower, Lithonia, GA. 

In the fast-paced world of real estate, quick decision-making is a valuable skill. Delays in decision-making can lead to missed opportunities and increased costs. Developing this skill can significantly enhance your project's efficiency and profitability.

To master quick decision-making, ensure you have a clear understanding of your project's objectives, timelines, and budget. Equip yourself with the necessary information and confidence to make informed choices swiftly, keeping your project on track.

#5: It’s Worth the Time & Money to Get Your Property Appraised

“The lender’s appraisal came in much higher than we anticipated and we lost out on potential profit,” – Borrower, Winston, GA.

A professional appraisal provides an accurate assessment of a property's value, offering crucial insights for making informed investment decisions. Skipping this step could result in missed profit opportunities or financial miscalculations.

Investing in an appraisal before buying an investment property not only validates your ARV calculations but also builds credibility with potential buyers and lenders. A well-informed appraisal ensures that you're maximizing your property's value and return on investment.

#6: Establishing a Work-Life Balance Will Prevent Mistakes & Boost Motivation

“Mistakes happen the most when either myself or my team is overworked; balance literally keeps everyone motivated to finish the project on time and with quality,” – Borrower, Stockbridge, GA.

Maintaining a healthy work-life balance is often overlooked in the pursuit of success. However, neglecting this balance can lead to burnout, decreased productivity, and costly mistakes in your projects.

To achieve a work-life balance, prioritize self-care, delegate tasks effectively, and set clear boundaries between work and personal time. A well-rested and motivated team is more likely to deliver high-quality results and meet project deadlines.

#7: Getting to Know the Local Community &/or Neighbors Can Open Doors to Helpful Opportunities

“For my next deal, I will make sure I build relationships with the neighbors. They are often excited for new builds in their community and want to feel like they are part of it,” – Borrower, Stockbridge, GA.

Building relationships with the local community is a strategic advantage for fix-and-flip investors. Engaging with neighbors can provide valuable insights, support, and networking opportunities that benefit your project.

Connecting with the community fosters goodwill and can lead to unforeseen opportunities, such as valuable recommendations or potential buyers. Being an active and engaged member of the neighborhood enhances the project's success and reputation.

#8: Having a Reliable Lender is Key

“SkyBeam has always funded my deals on time and quickly. Because of that reliability, I have won multiple offers…” Borrower, Stockbridge, GA.

Securing a dependable lender is crucial to the success of any fix-and-flip project. Financial stability and flexibility provided by a trusted loan program empower investors to tackle challenges with confidence.

Cultivating a strong relationship with a reliable lender ensures access to necessary funds, timely disbursements, and financial guidance. A supportive lender is an invaluable partner in navigating the complexities of real estate investment.

Flipping a home can be a rewarding and exciting investment opportunity, especially if you have the knowledge necessary to overcome common pitfalls and unexpected challenges. By learning from the experiences of seasoned investors, you can push your real estate investment business forward with streamlined processes and advanced strategies. 

If you're looking to finance your fix and flip project, consider inquiring with SkyBeam Capital about their fix and flip loans. They offer flexible financing options to help you make the most of your investment.