What are some general advice you would tell newbies?

Question

Hey guys I want to do a fix and flip in the near future and was wondering what are some general advice you would give me?

Bruce Woodruff · Answer

There you go again. Just because you don't know how to choose a good Contractor does not mean that the majority are bad. I would counter your erroneous statement with this:

"What causes 99% of projects to fail is the homeowner/investor/flipper having zero clue on how to find a  property with decent upside, choose a good Contractor, manage a budget, stick to the plan, stay out of the way, etc..."

😂

Steve Vaughan · Answer

Flipping is a self-employed job with high risk and high transaction costs.

By the time taxes and agents are done with you, the juice is rarely worth the squeeze.

Avoid short-term debt so you can hold it as a rental👍

Bruce Woodruff · Answer

I never want to hear those words again! I had a huge remodel, and when I finished I sat down with the customer to go over the job. I asked if he was pleased with the work, and he said of course your craftsmanship is superb. I'm just disappointed that you went over schedule. I pulled out my job binder and showed him the 40 something change orders that he had requested. He had forgotten all of them LOL...

Mackaylee Beach · Answer

It's crucial to have a prepared crew/contractor - that can handle any unexpected situation.

Eliott Elias · Answer

What causes 99% of projects to fail is contractors with fix and flips. They are extremely inconsistent and require most of your attention. Choose them wisely. There are tons of tutorials and resources on how to choose the right contractor and red flags to look for.

Bruce Woodruff · Answer

True. All the more reason for a homeowner to make sure that the Contractor they hire is legit...licensed, insured, references, good contract and other paperwork, etc ..

Eliott Elias · Answer

Even if that is the case, to have a new contractor pick up where the old one left off is a nightmare on its own.

Bruce Woodruff · Answer

Yeah, I know it happens and it's a shame. We Contractors hate the bad ones more than you do, because they make us all look bad. But also, these investors should never be giving the Contr more money than the work that has been completed. This is not rocket science, it's a really easy concept...

Eliott Elias · Answer

Hi Bruce, you are correct. There are many projects that fail due to the investors errors in running numbers and newbie status. I can also tell you that every investor I know has had a contractor run off with their money and ghost them. This may be because the contractor was chosen incorrectly, but to say this is not a risk is naive.

What are some general advice you would tell newbies?

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