10 mistakes that made flipping a flop

Posted by admin in Case Study

Check out this article in USA Today for a reminder that flipping houses is work and has to be done right

If there’s a poster child for everything that went wrong in the real estate boom, it just might be Casey Serin.

In one year, the 24-year-old website-designer-turned-real estate-flipper bought eight homes in four states — and in every case but one, he put no money down. At his peak, in April, Serin had $93,000 he’d taken out of the homes as he bought them. By July, he was broke, desperate for one last deal.

I’ll let you read the full article for all the info but here’s the guts of the 10 mistakes:

1. Using ‘liar loans’
2. Overpaying
3. Lacking cash
4. Quitting your day job
5. Hiring an unlicensed contractor
6. Buying sight-unseen
7. Buying out of state
8. Buying too many properties too fast
9. Underestimating remodeling costs
10. Having a poor exit strategy