House Flip Gone Bad

flip_it_fast · #1 06-15-2010, 05:17 PM

I just read this story about a first time house flipper and the mistakes that he made.... This is a good example of what NOT to do.

He decided to try to flip a house after watching a house flipping show where of course they make it look so easy. He found a house and put 10% down on it. He debated whether he needed to hire a contractor to complete the renovations or not. That debate took him two weeks. Finally he hired a contractor. It was to cost him $11,000 for everything that needed done and the to pay the workers. Once he hired the contractor they couldn't start for another two weeks due to jobs they had already started. After they had started on his house for about a week the contractor just disappeared. He said some of his workers had quit and he was behind on things. The owner waited around for a couple of weeks and then finally fired the contractor and hired someone else. All in all, it took eight months to to finish the house and put it on the market. He listed the house too high and it sat there for a few months. While all of this was happening, he was having to make the house payments. What was supposed to be a nice profit ended up not being so much because of all of the delays.

He didn't have a plan to begin with and that really hurt him. He didn't do any research. He just jumped in and it cost him a lot of money!

flippinout · #2 06-16-2010, 06:02 AM

This happens so many times with people that are trying their first flip. One good idea would be for them to contact someone that has done this before and get some good sound advice on how to proceed.

Hiring a contractor is a very tricky part of the flipping process and is one thing that you should always research before even considering flipping a house. You have to make sure you have a contractor that is honest and has been in business for a good length of time with happy customers. Do your research first then buy the house.

Make sure you have a well rounded budget and that you will be able to stick to that budget. Other wise you are going to end up with very little profit.

BSClay · #3 06-16-2010, 04:08 PM

Oh wow, I bet that guy was so irked as he was slowly loosing his profit. Yeah, too many people rush in head first only to fall flat on their arses. Do research people!

flip_it_fast · #4 06-17-2010, 04:21 PM

I think the biggest cause is all of those house flipping shows. Don't get me wrong, I love to watch them but they make it all look so easy. People can be too gullible I think. It ends up costing them big in the end!

homealone · #5 06-17-2010, 06:17 PM

There are a lot of different shouse flipping shows and they do make it all seem to be extremely easy. This is why there are many people who don't bother with doing any research and jump in and attempt to flip a house.

I have heard about a couple in my area who attempted to do a house flip and ended up way over their heads.

I am not saying that these flipping shows are to blame, because they are not. No one should just attempt to do something when they are clueless as to what they need, should know and so on.

I feel bad that first time flippers make so many mistakes and it ends up costing them, but if they just would have taken even an hour and did some research they would all have discovered that there is more to flipping a house than what is shown on TV.

I would like to see at least one of these house flipping shows, really go into great detail on house flipping, then maybe some of those who are wanting to try it for themselves would be able to do it right the first time.