Residential & Investment
Property  Specialists

Setting Expectations for Effort, Money, and Time for Prospective Property Investors Flipping a Property

Setting Expectations for Effort, Money, and Time for Prospective Property Investors Flipping a Property

Given the perceptions of property investing generated by popular media, it’s easy for a prospective property investor to have unrealistic expectations. If mainstream media and social influencers are to be believed, flipping a property is so easy that everybody can master it and it’s going to go as seen as TV.

There is no “as seen on TV package” when it comes to flipping a house. You need to have your project management plan in your head (or better yet, on paper) ahead of time, even before selecting a prospective investment property -- because that’s going to help identify the property.

Regardless of whether you’re investing to flip or to hold and rent out a property, it’s unrealistic that you’re not going to stress about it. The time frames may be different, but it’s going to be a rollercoaster ride with ups and downs.

Your New Job

Finding, buying, renovating, marketing, and selling a property to flip is intense and can be overwhelming if the investor is not prepared for it. Make no mistake, it’s going to require a lot of effort and mental energy – to be successful, you’ll have to own the project and it’s not a nine-to-five job. You will have to be ready for the unexpected, regardless of how much due diligence you may have put into selecting the property.

The Money Machine

The biggest unrealistic expectation, especially for new property investors, is that every property is going to make them rich. In a perfect world, your new investment property swells your bank account, in the worst case, the investor becomes a walking ATM. The reality is somewhere in the middle if you’re flipping houses regularly, where you’re doing one project a year and it’s not your full-time job. Every single property may not make you huge dollars. You may hit one that makes you a bunch but then you may hit one that you’re breaking even because something came up that you could have never foreseen.

The Clock

Unrealistic time frames are one of the most frequent unrealistic expectations we see with prospective property investors. This is not just the timetable for renovations and the inevitable delays and surprises the arise in a construction project. When an investor sets their time frame on a flip, they often don’t take into account the effort and time put in to remarket the property.

Even if you’ve had an exceptional flip where you’re bought the house, closed on the house, set a project plan, you’re hands-on, and your renovations have gone on schedule, it still takes time to sell your investment property in a normal market. It takes time to get pictures, market the property, hold an open house, show the property to prospective buyers, field the offers, and everything else.

The investor may have set a 90-day time frame and with good planning be ready to flip it at the end of the 90 days. But you still may not close for another 90 days. When you’re flipping a property, when you’re ready to sell it and when the money’s actually in your bank can be a shocking surprise for an investor with an unrealistic expectation.


Author

Joelene Fischer

As an experienced Realtor®, real estate agent, broker, property manager, and licensed general contractor, Joelene is uniquely qualified to be your partner in building your Florida real estate investment portfolio. In addition to working with real estate investment clients, Joelene is the founder of a real estate group and property management firm for the management of daily rental activities and oversight of maintenance of client properties. Sunburst Real Estate Group works with landlords, renters, and real estate investors across Charlotte, Sarasota, and Manatee counties; including the communities of Tampa, St. Petersburg, Bradenton, Longboat Key, Sarasota, Siesta Key, Osprey, Nokomis, North Venice, Venice, Manasota Key, Englewood, Port Charlotte, Fort Myers, Sanibel Island, and Naples Florida.



 

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Sunburst Real Estate Group provides property management and realty services to landlords, renters, and real estate investors across Charlotte, Sarasota, and Manatee Counties; including the communities of Tampa, St. Petersburg, Bradenton, Longboat Key, Sarasota, Siesta Key, Osprey, Nokomis, North Venice, Venice, Manasota Key, Englewood, Port Charlotte, Fort Myers, Sanibel Island, and Naples Florida.