Things don’t always go to plan, and we need to be aware of potential risks that could result in us not making our desired profit or even losing money when property flipping.
- You need to take action – only you are responsible for the outcome
- Renovation budget blowout
- Time delay
- Loan term/default
- Defective materials or delayed materials
- Time delay with council
- Delay in property purchase or sale
- The market changes & prices fall & you can’t sell
- Rezoning/environmental issues/asbestos
- You don’t achieve your sale price after renovating
- Your seller JV partner decides they don’t want to sell
- You have to go back to the market because your sale falls through
The thing is, things can go wrong, not just in property flipping but in business in general & in life.
Having a backup plan or Plan B is critical, not only for newbies but for seasoned pros.
This isn’t a post to scare anyone, just a reminder
