With every flip comes a new lesson learned… and sometimes, that lesson really sticks. That’s definitely the case in Courtney’s recent flip — an experience that left her with one standout impression: When it comes to flips, things move fast!
When this Nashville real estate investor embarked on what would be the largest fix and flip she’d attempted, she thought she knew what to expect. This full gut rehab would modernize a 1930 two bedroom, 1 bath cottage, set in a desirable neighborhood near schools and parks. Courtney’s project would transform the property into an up-to-date three bedroom, two bath.
Along the way, though, Courtney soon realized the importance of padding her flip budget. Work on the home soon revealed some major structural problems that had to be repaired. Overall, these issues ended up costing an additional $7,000 that wasn’t included in the budget.
Unfortunately, an even bigger budget drain came from an untrustworthy contractor. This unscrupulous individual took a $17,000 payment, but never finished the work they contracted to complete. Being left in the lurch this way drove home a valuable lesson: Always run thorough background checks on contractors. This means tracking down references, seeking out reviews, using referrals, and checking licensing and insurance.
Courtney also learned not to be too trusting when it comes to paying your contractors. “Do not give them money upfront (pay them weekly at end of the week) because if you give them money up front, they have no incentive to finish the work timely or finish it at all.”
Overall, though, Courtney’s big flip was a success story. The home sold quickly, bringing a tidy profit. Looking back, Courtney notes that her biggest takeaways for other investors are to make sure you keep your checkbook ready, and to focus on building a relationship with your New Western agent, as they can really help you through the process.