House flipping is lucrative, but to flip right you need knowledge, thorough planning, and a keen business sense. You must have an in-depth business plan, and you must know exactly how much money you’re working with. You’ll also need to know how much cash is a good amount to have on hand, as well as how much you’ll profit from expected deals. Here are a few mistakes that new real estate investors must avoid to protect their investments and make a profit.
1. Not Enough Knowledge:
To be successful in the real estate investment business, you must know how to pick the right property, at the right location, and for the right price. You should not blindly buy a house in foreclosure, as you’ll need experience to understand which renovations are necessary and which can be avoided. You must also be aware of local zoning laws so you avoid code violations. If everything is done correctly on the first go, you should make a substantial profit, and quickly too. Also be aware of any relevant property tax issues before you buy, as these can eat pretty deep into profit.
2. Not Making Use Of Motivated Seller Leads:
Since homeowners are now struggling with selling their homes in the conventional market, real estate investors have plenty of opportunities to reach out to motivated seller leads. Keep in mind that phone call leads are typically easy to convert, as individuals who call are usually genuinely looking for a quick solution. But if you miss the call, there must be a proper notification system in place, one that notifies you via message or email. Real estate industry experts say the chances of converting a lead plummet if you don’t follow up on a call within five minutes.
Of course not every motivated home seller lead will convert, but this should not stop you from following up with motivated sellers. It’s likely you’ll close more deals if you follow up with motivated seller leads via effective emails, calls, and text messages.
3. Not Enough Money:
Real estate is expensive, and you must have enough money for acquisitions. And without experience, you may jump in headlong without thinking about what needs to be done to the property. Many new investors make the mistake of getting into the business before putting together an investment plan, or before figuring out how the investment will work. Some investors start with very high expectations while having very little hope, and these individuals often make miscalculations which lead them to overestimate a property’s potential. Then other times, they can miss out on a great buying opportunity because they’re too cautious.
4. Not Enough Skills:
Skilled professionals like carpenters, electricians, builders, and plumbers get into the house flipping business because they have the knowledge and skills needed to fix a house. Similarly, realtors use their experience to get an idea of a property’s true potential. Such professionals put in time, effort, and money to make their investments work, and often they reap large profits. But if you don’t know any relevant skills, you must rely on professionals to do the repairs for you. And this reliance will reduce how much profit you can make from an investment.
If you’d like to make a real estate investment profitable, contact us. We help real estate investors generate motivated seller leads with comprehensive digital marketing strategies. Call us at (412) 254-9225 to learn more.
The author helps real estate investors generate motivated seller leads for their businesses. Visit https://motivated-leads.com/ to learn more.