When most people start to invest in real estate they usually have a limited amount of funds. Many beginner investors try wholesaling in order to make enough money to move into fix and flipping or buy and holds. When people have a limited amount of funds to invest, cash in a huge concern and they do everything they can to save money. They make repairs themselves, they don’t hire professionals and they set unrealistic prices. In the long run, many of these choices meant to save money will actually cost you much more money in the end.
About five years ago I decided to do the repairs on a fix and flip myself. I was not an REO listing broker at the time, I sold 10 to 20 houses a year and my primary source of income was from fix and flips I did with my father. To earn extra money I would sometimes paint, install lights fixtures or do other minor repairs in our flips.
I decided that I wanted to make more money on the next deal. I decided to complete all the repairs on a flip we were buying. I figured I would profit more on the flip by not hiring a contractor and I would earn an hourly wage my dad paid me when I did work on the flips. This particular home was about 100 years old and needed a lot of work. The home needed new windows, a new kitchen, new flooring, new doors, new paint, new fixtures as many other minor repairs. I could handle it……..
Did I mention I wanted to take a wall out to give the home an open kitchen/dining room? I was smart and decided to …read more