FORT LAUDERDALE, FLA. (PRWEB) AUGUST 12, 2020
On the surface, it looks pretty easy – purchase a house, make a few changes, re-list it on the market, and make a profit. There are an array of television shows that have glorified this process, but these shows don’t tell the whole story. Throw a global pandemic into the mix and you may be in for a dangerous financial situation. M&M Private Lending Group has the expertise to tackle any “Fix & Flip” project.– Michael J. Internoscia
If you’re considering flipping houses, it may seem like a straightforward process: buy a property, make some renovations, and sell it for a profit. However, as M & M Private Lending Group in Fort Lauderdale, Florida advises, there are many factors to consider, especially during times of economic uncertainty like the Covid-19 pandemic. While flipping houses can be lucrative, it’s not for everyone. Knowing what mistakes to avoid and whether private lending is the right choice for your project is crucial.
One common mistake is not having enough money for a down payment. While low or no-money financing may seem appealing, finding a legitimate vendor is rare, and lenders are hesitant during uncertain economic times. Also, you’ll have to pay interest monthly, and interest on borrowed money is only partially tax-deductible. It’s important to consult with an accountant and not rely solely on the lender.
Another mistake is not having enough time to execute the plan. Flipping houses is time-consuming, and it can take months to find and purchase the right property and complete the necessary renovations. If you work during the day, you’ll need to dedicate your free time to the project. However, with Covid-19 creating more free time for some, it could be the perfect opportunity to pursue a flipping project.
Not having the proper skill sets is another mistake. Flipping houses requires experience and the ability to find and fix properties. If you don’t have these skills, you’ll need to hire someone who does, which adds to your expenses. However, Covid-19 presents opportunities to learn new skills online or through experimentation.
Flipping houses can be a lucrative business, but it’s essential to avoid common mistakes and take the right steps. If traditional lenders have denied your loan, private lending may be a solution. M & M Private Lending Group has expertise in private hard money loans to make your “Fix & Flip” project a reality.
While flipping houses can be profitable, you definitely have to know what you are doing.