Problems?

[Eric Griemsmann]

Hello Bigger Pockets Community,

My name is Eric. I have been on bigger pockets for about four months now. I have been learning the wholesale side of real estate investing by running the deal analysis department of Eggleston Realty. It is one of my closest friends real estate company, but it is not fulfilling my urge to get in to real estate. What i feel deep down in my heart and what i have a passion for is fix and flipping. So, I guess what my question is cause i am just getting started is. What problems has everyone else run into when first starting out? Thank you in advance for all the feedback.

[John Casmon]

@Eric Griemsmann Congrats on finding something you have more desire to do.

I'd suggest reading the book on flipping houses by @J Scott as it can help you avoid many of the pitfalls. Most of the problems investors run into fall into three buckets: underestimating rehab costs, underestimating rehab time or not properly assessing ARV. There are plenty of other issues like hiring the wrong contractor, zoning/permit issues, helping buyers qualify, poor design choices, etc., but the bulk fall somewhere within those three buckets.

Assume an additional 20% for time and cost and you might have a leg up. Check comps, not just for price, but for layout and finishes.