There’s no doubt in your mind that the property is an excellent flipping
opportunity. There are several projects that have to be completed before the
house is shown off, but you’re certain that there’s going to be a tidy profit
from this transaction. Timing can be your best friend or your worst enemy when
you’re flipping or wholesaling property. Consider the ramifications of both
overestimating and underestimating your timeframes.
If you’re flipping property, you already know that every moment you have your
money tied up is delaying your next flipping opportunity. One of the keys to
successful flipping is to turn that property at the best price possible as
quickly as possible. With that in mind, you cut the date of the first showing to
the bare bones. That could be an incredible mistake.
Contractors, deliveries, weather and any number of factors can cost you time
on your flipping project. Some of those delays snowball, costing even more time.
When the plumber can’t get pipes installed on time the carpenters can’t get a
section of floor replaced and then the carpet layers can’t do their part – and
they can’t return for a week because of prior commitments. The entire flipping
project has just been delayed by a week because a plumber didn’t have the
connection he needed.
But does it really hurt anything to have the first public showing with some
carpeting missing? Actually, it might. The majority of people who are going to
be willing to pay top dollar for your flipping project aren’t looking for a
“fixer upper.” That was your job. If you’re still working on bare floors, still
have cabinets in boxes, still have walls without paint or wallpaper, the house
has the look of the fixer upper and you may very well lose the interest of the
buyer who would have made you an offer on the first day.
So what’s the answer to this flipping timeframe issue? Careful planning with
backup plans. Remember that even if you do plan as carefully as possible and
even if you have commitments from contractors “written in stone,” you’ll
probably face at least a few critical moments that can make or break your
timeframe on this flipping project. There are a few things you can do to help
avoid those moments altogether.
Make sure you have all your own ducks in a row. If you’re in the city limits
or a zoned area, get your permits and check with officials to be certain you’re
in compliance with requirements. The only thing worse than having a contractor
fail to show up on time is to have a code enforcement officer show up and call a
halt to work.
If possible, get commitments from those plumbers, electricians and other
professionals to appear on a specific date and to stay with the job until it’s
complete. You may pay for this service, and you have to decide if it’s worth it
to your flipping project.
Plan as far ahead as possible. If you know you’re going to be ready for
cabinets in two weeks, don’t wait another week to order. Placing orders and
handing out notices ahead of time can be your insurance against a certain item
being out of tock or a professional being unavailable.
Finally, have backups and be as flexible as possible. If you’re putting on a
major “do” for the showing, give yourself a day or two past the day of
completion to wrap up any last minute projects on your flipping project. It may
very well be the day you need to deal with the rain that kept the painters from
finishing the porch rails.
