Flipping houses can be a rewarding endeavor. However, it comes with numerous obstacles. A person must be patient and persistent in order to succeed in this type of enterprise. There are a number of common issues people run into during fix and flip projects. These problems are often shown on popular television shows. But, there are some problematic factors to consider that do not have enough dramatic flair for television. These issues can significantly affect your project. Here, we will take a look at 3 fix & flip problems you won’t see on TV.

Regulations

A number of regulations have been put in place to discourage house flipping. Unfortunately, fix and flip investors were blamed for much of the economic meltdown in the early 2000’s. These restrictions include things like the FHA requiring that an individual must own a home for at least 90 days before selling it. These regulations affect people in every state, including California, because it is a federal program. If you need to sell a property before the 90 day period, simply avoid selling to people using FHA loans. Some lending organizations now prohibit investors from bidding on foreclosed properties for the first several weeks. They may require intention of occupancy in order to bid. These rules vary depending on the lender and there are always exceptions. Investors should check with specific lenders to determine if such restrictions apply. These regulatory delays can be serious problems for house flippers and should be taken into consideration when making an investment.

Theft

It is crucial to keep your property secure. Theft can cost you an enormous amount of money. People will steal anything of value such as external air-conditioning units, tools, and tile. Sometimes, even those working on your project will take things that do not belong to them. It is helpful to know the people on your work site and make sure you have properly locking doors. If your property is gated, secure the gates with sufficient locks. Some property owners install alarm systems as well.

Weather

You may not think weather is a big issue. However, it affects house flippers in all climates. It can create significant delays in your schedule. Although not as much an issue for the state of California, extreme heat, cold, rain, and snow all have an impact on various areas of construction.  One way to deal with weather is to work in a different area when weather prohibits work in a certain area. For example, if it is raining and you are unable to paint the exterior, move indoors and complete some projects inside. This helps you stay on schedule without losing workdays due to unexpected weather conditions.

Flipping houses is a great way to earn money if you are willing to put in the necessary time and effort. It is not as easy as television shows make it appear. As long as you are prepared for anything, you will likely succeed. Contact us for more information and assistance.