House Flipping 101 Episode #6
What’s up internet? Welcome to Episode #6 of “House Flipping 101.”
On the last episode we discussed “Permits, Zoning, & Historical Issues,” now, on this episode I’m going to be covering “Renovations.”
On this series you will be learning from the experience of someone that has been flipping houses for over 4 decades, my grandfather. He has experienced all the up’s & downs of the house flipping game. And by collaborating with me we are hoping to deliver valuable insight as to what it is actually like to flip a home. Many times TV can portray house flipping to be easy with no headaches, when in reality, reality TV is far from the truth.
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Now on to the renovations…
As a flipper you have now reached a critical point in your flip. You should have a good idea of what your flip needs and how much money you have to do the renovations. However, there are some concerns that you need to watch out for.
One, influence from others always play a part at this point. Either your wife or husband, friend, partner, Realtor, or other will have an opinion on what you should do.
The most troublesome person is yourself.
As you start the renovation there always seem to be changes. Some you can’t avoid, like rotten wood in the wall, under the floor, on the roof, etc. Other changes come from personal likes or dislikes. You should always remind yourself to stay neutral. Lets say your favorite color is blue. Don’t paint your flip in blue because you like that color. I recommend all painting should be in an off white. If you or some says the flip has no color, I recommend you hang curtains in a few rooms with a color. It’s cheaper and quicker. To paint your rooms different colors would be a mistake.
Two, flooring can be a large expense in your flip. If there is a way to save the flooring there you should do so. If not, look at your options. Hardwood, vinyl, laminate, tile, or even carpet. You should price your flooring and look for a sale. This type of process goes with cabinets, siding, light fixtures, etc.
Three, As you proceed with your flip you may run into a potential buyer. That buyer may want changes in your flip. Yes, it’s good to have a buyer and you want to make them happy. However, you must remember that they are only a potential buyer. You may want to change things to make them happy, but if the deal falls through you are now stuck with their likes and may not be someone elses likes. Even if they give you up front money to make the changes, you are stuck with them and may cost you time and money down the road.
Four, Last on the renovation part of your flip are the contractors. Choosing a contractor can be beneficial or a nightmare. When choosing a contractor you should have a two part process. The first and most obvious one is a friend or someone gives you a reference. You might avoid the following if he or she is a friend. (references-suppliers they buy their material from-insurance and license). If you don’t have a friend or someone to give recommend a contractor you might search the internet or find a contractor in a flier. When asking for a reference, do you think for one minute that contractor will give you someone he had a problem with???
No, he or she will give you a couple of good ones, or even deceive you and have a friend act like a homeowner just to say he is a good contractor. Make a point to do some investigating into the contractors you consider working with.
Ask for the supply companies they buy there material from. Go to the local building apartment a ask the inspectors about their work. Check for their insurance, check to see their license, confirm this by calling their insurance company and see if their license matches their name. Some contractors just give you a number and claim it’s their insurance and/or license. You may come to find out they copied it off another contractors truck and is using it as theirs.
Do not do any construction with a permit. Make sure your contractors have insurance.
if you enjoyed this video please subscribe & comment what your thoughts are on house flipping in general.
If you are new to the series I recommend going back and watching the rest of the episodes you missed, you’ll find a link to those episodes in the description. Thanks again for watching, and be on the look out for the following episode. Episode #7 which will be on “Designing.”
Roars to you,