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6 Lessons Learned from Flipping Homes

Published March 23rd, 2022 by Easy Loan Helper

Home renovation and flipping shows on TV highlight some of the challenges of completing these types of projects, but until you’ve done one yourself, you don’t really know what's in store for you although, you should always prepare yourself for surprises whenever planning to flip a home, the more research you do, the better prepared you’ll be for the unknown.

Learning from other flipping Investors lessons is one way to avoid some of the most common pitfalls of fixing-and-flipping.

1. Expect the Unexpected

You never know what’s hiding behind the walls of a home. Always have a professional inspection performed before you buy so you know what you’re getting yourself into but know that you still may discover some surprises along the way.

Examples Of What You Might Find Include:

  1. Roof or plumbing leaks
  2. Foundation cracks 
  3. Electrical issues
  4. Mold
  5. Structural problems
  6. Hidden water damage
  7. Pests

2. Build Extra Funds into Your “SOW” Budget

Even the most experienced flippers will face unexpected expenses. Add a buffer to your budget so you have some extra funds to use while still making a profit on the flip. If you don’t have to use it, it’s an extra bonus, but if you do, it may allow you to still make money on the flip. Projects almost always go over budget, not under, so make sure you have sufficient funds on hand to cover overages if they occur.

3. Build Extra Time into Your Timeline

In addition to costing more than initially budgeted, many fix-and-flips also take longer than you expect, even with an experienced contractor. Factor in extra time for the various challenges that are out of your control, such as:

  1. Delayed materials
  2. Overbooked subcontractors
  3. Weather delays
  4. Poor time estimates

4. Pay Attention to The Market

The real estate market can often be in constant fluctuation. What was once a great value when you purchased the property, may change by the time you’re ready to sell, so pay attention to the market and be ready to shift your plans depending on the situation.

Some of Your Options Might Include:

  1. Sell the home before the renovations have been completed.
  2. Reduce the budget and shorten renovation time if you're trying to get the property on the market in time to capture the summer rush.
  3. Complete the renovation, convert the loan to a regular mortgage, and maintain it as a rental property.
  4. Build out the house to follow trends. For example, some builders have changed floor plans based on shifting wants and needs during the COVID era.

5. Keep an Eye on The Bottom Line

Every unexpected cost eats into your projected potential profit. Have a good understanding of all of your costs and the financial impact of every decision you make. This includes pop-up projects that may delay your timeline because every month you delay, is another month you may make loan payments.

6. Securing Funding May Not Be Easy

Even if you have great credit and a solid history of paying down debt, you might not be able to get a bridge or fix-n-flip loan from a conventional lender. It isn’t about your relationship with the lender but rather the limitations on the types of loans they may be able to offer from time-to-time. Other factors—such as the condition of the property—play a role, because fix-and-flips often don’t meet the criteria of conventional lenders. 

If you have bad credit or difficulty providing proof of income through tax returns or bank statements, or you have less that 5+ flips experience, getting a conventional loan may be even more challenging. Fortunately, there are alternative funding options. Private or Hard money lenders specialize in financing deals that conventional banks cannot. These loans are based on equity so if you own property, you can probably get funding for your fix-and-flip.

Are You thinking about acquiring a Single Family, 2-4 unit or 5+ unit property to fix, flip or hold? We’re Here To Help…

Easy Loan Helper offers a myriad of conventional, alternative, and private or hard money bridge loans, and we directly originate, package, price, process and work hard to ensure that all of our client’s loan requests experience a successful funding.


To learn more about how to get financing for your next flip online at www.easyloanhelper.com or call us directly at 832-640-2303.


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