Many entrepreneurs are lured into the area of house-flipping because of the potential to earn huge profits and to accumulate wealth in a relatively short period of time. It’s true that a great deal of money can be made by flipping houses, but you should be aware that there are some pitfalls commonly experienced by newcomers to the business, and even veterans sometimes fall prey to these same mistakes.

Mistakes made by house-flippers

Here are some of the most common mistakes made by people in the house-flipping business. Being aware of these pitfalls is no guarantee that you’ll be able to avoid them, so be very wary of the presence of any of these deal-breakers:

Not enough money – there are a number of different financing options available when house-flipping, but there are also a number of hidden costs that suddenly appear and can scuttle deals. For instance, repair work, interest rates, property-holding costs, and renovation costs.

Not enough time – it can take quite a bit of time to locate properties suitable for flipping. Then it can take more time to carry out any needed repair work or remodeling, and it will take more time to have the house inspected. 

Inadequate skills – if you had hoped to do much of the repair work yourself, you may be hampered by the fact that you lack certain professional skills necessary for the job. Lacking those skills, you’ll be obliged to pay for them, and that will increase your expenditures while lowering profits.

Insufficient knowledge – once you’ve become good at flipping houses, you’ll be aware of all the subtleties and nuances associated with the business. Until then, you may lack the knowledge to pick the right property, at the most favorable location, and for the best possible price.  

Need cash for flipping houses?

If so, we might be able to supply the funding you need. Contact us at Artis Commercial Capital, and our financial experts will discuss some possibilities with you so you can secure the funding you need to carry on your house-flipping enterprise.