What to expect with your next flip

[Tony Freeman]

When you are new to flipping, the most important thing you have to understand and be ok with is the risk level of it. Flipping could be your biggest and quickest financial gain but it just as well can be your biggest and quickest financial loss. You have to be even more careful now more than ever with the properties that you take on for flips because what I've been seeing in the Chicago market is rehabs taking longer due to orders being extremely backed up and overall costing a lot more money. 

I'm no GC by any means but I've worked closely enough with clients that flip or rehab places and I typically can give you a pretty good guesstimate of what the rehab would cost from what I've seen but lately what I've heard from clients that have gotten quotes from GC's, the cost of the rehabs have been like $60K+ more than what I typically have seen. So please do your homework on where you want to flip, what you want your return to be, and also try to be as open minded and realistic as you can be. Also, please understand that the seller isn't selling their place based on what you want your numbers to be. Yes everything is negotiable but only to a certain extent and with the low inventory and high amount of buyers, negotiating has become increasingly more difficult which takes me back to my previous point of being realistic.