Flipping homes for sale in Aventura is a very profitable endeavor if you know what you are doing. As with most opportunities that can turn highly lucrative, there is also at risk. Being well-informed is the best way to ensure success as an investor in Aventura real estate.
One miscalculated decision can lead to a situation where you break-even or worse, leave you with a loss. To avoid failure, the following 3 mistakes are some of the most commonly made and ones you learn to sidestep when attempting to fix and flip homes for sale in Aventura.
1) Over-improving Homes for Sale in Aventura
Over-improving your property in the Aventura real estate market will make profitability difficult. Experts in Aventura real estate report that many new investors often over improve by up to 50 percent. They do not understand which improvements add value to Aventura real estate, so they do too much. Unnecessary improvements that do not add value will eat up the margin of profit you are hoping to make. There are many small things you can do to improve the Aventura real estate property which cost very little.
For example, an Aventura real estate property is more likely to sell if it has a nice color palette. Generally, pleasing colored paint is not going to cost much more than regular white paint. Investing in colored paint is an affordable way to make the home more desirable. Knowing which improvements to make, based on how much value they add to the property, is a key in a successful fix and flip project on homes for sale in Aventura.
2) Buying the Wrong Homes for Sale in Aventura
Consider your exit strategy before you purchase homes for sale in Aventura. Think about who will want to buy this Aventura real estate property and why. The wrong place will be one located in a bad neighborhood. No matter how well you fix it up, you will have a difficult time selling Aventura real estate property located in a crime infested neighborhood.
Another truism is most people do not want to live on a busy street. When shopping homes for sale in Aventura, pay close attention to the surroundings of the house. Street parking also can be an issue and it is one you don’t want to get involved in when buying Aventura real estate. A good resale home will at the very least have a driveway, and a garage is even better. Look at the neighboring homes be sure to notice if the lawns are well-manicured and if there is debris or broken-down vehicles lying around. Notice if the neighbors appear friendly and if the area has a welcoming feel. Keep in mind, you are purchasing this house with the intention to sell it. Buying the wrong Aventura real estate property is a surefire way for your flip to fail.
3) Expect and Prepare Financially for Things to Go Wrong
Things will go wrong. It is just the way of the world, especially when dealing with Aventura real estate. Home flippers need to be prepared for unforeseen situations by having a contingency fund of about 10 to 20% over what a contractor is estimating the repairs will be to cover what you may encounter. So, for an estimate of $20,000 in repairs, you should have another $2,000-$4,000 in reserve. It is always better to be over prepared than under prepared. Without a reserve fund, the entire project may come to a complete halt until you can come up with the money.
The best way to ensure success in your fix and flip project is to avoid common mistakes. When you know what to do and what not to do to have a profitable project than you are ready to enter the Aventura real estate market.
