Dave Clabeaux - Be Prepared: House Flipping Checklist

It is important to be prepared before heading out to look at a property.

When you go out and look at your next house, make sure you have all of these items with you:

1.  Flashlight.  You do not know if the electricity will be on.  And you want to be able to peek into any dark places like attics, crawl spaces, and under the sink.

2.  Clipboard, paper and pen.  You want to be able to take notes as you walk through the house.

3.  Cell phone with camera on it. You will need to take pictures that you can refer to later when deciding if this is a house you want to flip.

4.  Tape measure.  This will help you estimate the costs of things like flooring, cabinets, and paint.

5.  Business cards.  In case you run into a realtor, contractor, or someone who could help you build your business.

6.  A full tank of gas.  This may seem obvious, but if you are in an area that you are unfamiliar with, you do not want to waste time looking for a gas station when you could be looking at

other houses.

7.  A comfortable pair of shoes.  You will be doing a lot of walking, so you want to make sure your footwear is comfortable. 

You might also be in some rough houses, and so sandals are a no-no.

Print out this checklist and use it the next time you go out and look at a property.

David Clabeaux ! Dave Clabeaux - I Hope This Inspires You

Some people are easily discouraged when they get into flipping houses.

They see the price of houses on the market and think...

"I can't buy a house for that price and still make a profit.  All the houses around me are just too expensive."

Here is the mistake they are making:

They look at a seller's ASKING price.  Many sellers will accept Far less than asking price.

Case in point:

Last week a lady came to us looking to sell her house. She needed to sell quick because she owed back taxes, and the county was about to foreclose on her house and take

everything. (This is what happens when you refuse to pay property taxes for 5 years straight).

Her asking price was $159,000. We offered $90,000.

She accepted.

We get a deal with a huge equity spread and the home owner gets cash out of a house she would have lost to foreclosure.

 It's a win-win.

Question for you:

Do you know of a house right now that's perfect for a rehab but the owner is asking too much?

Make an offer that works for you.  It might be 50%, 40%, or even 30% of asking price.

You never know what somebody will accept for a house until you make an offer.

Here's the big takeaway:

Don't be afraid to make low ball offers. You may get a dozen "NO's" for one "Yes" that leads to a $50,000 deal.

Dave Clabeaux ! Five Dangerous House Flipping Mistakes

Flipping a house for the first time is exciting!  Your head is spinning with different ideas to improve the property you purchased, and of course the possibility of big profits.

However, if you are not prepared, you can fall into the trap of making one or more of these 5 common but dangerous mistakes:

1.  Buying the Wrong House.  If you don't buy at the right price, your flip is doomed from the start.

2.  Underestimating Repair Costs. If you do not really know what your rehab costs are going to be, you are rolling the dice with regards to whether or not you will turn a profit.

3.  Becoming Emotionally Attached to Property.  Even though this seems like common sense, I see this happen almost every day: someone becomes emotionally attached to a house, ignores the numbers, and ends up losing his shirt.

4.  Not Leaving a Cushion.  If you want to make 30k on a flip, then you need to buy a house that you can make 40k on.  This leaves you a cushion of 10k in case any unforeseen expenses come up.

5.  Lack of Skills or Knowledge.  This is probably the #1 beginner mistake I see. Only a fool attempts to flip a house without the guidance of someone who has done it before.
I was fortunate enough to have a couple mentors to show me the ropes.

If you know someone who has successfully flipped houses and is willing to mentor you, please use them.  Offer them a percentage of the profits.  It will be more than worth it.