Why You Need a Mentor if You Are Flipping Houses

Does your agent suggest you add some extra touches? Once the
restoration part of the flip is done, do some things seem too outdated or
dirty? Does the new flooring and the new coat of paint now make some things about the house not acceptable? Do not get into this mind set.

Because if you do, or you let your realtor talk you into the granite kitchen countertops, or upgrading lighting throughout and replacing the
front door, this could add another $5,000 to the already exceeded budget. Then you will have to find someone to do the work and you have added another few weeks onto your investment being on the market and ready to sell. Stick to your original Property Repair Estimate Sheet from your original walk through. It is one of the more important documents you need to ensure you do not over improve and have your flip looking like Liberace’s.

It’s just not necessary to install granite countertops,
oil-rubbed bronze fixtures and travertine showers in an $90,000 property. Few homebuyers will see the value in these kinds of upgrades and an appraiser probably won’t either. So in reality you will not get your money back on those types of upgrades and probably will be upset with yourself for actually doing them.

Two tips we found at Biggerpockets.com

1.View other comparable properties in the neighborhood (preferably
other flips or normal sales) and take note of their improvements and finishes.
Use similar ones for your deal.

2.View new home models and take note of their designs, paint
schemes and finishes. Homebuilders pay professional designers big bucks to
decorate their houses so copy what they do for your properties.

Source: http://www.biggerpockets.com/renewsblog/2012/10/04/over-improving-house-flip-profits/

In conclusion, keep the emotions out of the flip. Just because
it is a feature that you or your significant other would love to have in your
own house doesn't make it a necessity in your investment. Remember just that; this is an investment, doubly so especially if you are flipping houses on a part-time basis. This way you will save your self the head ache and heart ache of over improving and keeping your investment your source for a profitable future.

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