(Newswire.net — January 21, 2018) — Property development is an industry that is fraught with negative connotations, a gamble few would approve of. After all, most of us can barely afford one house in our lifetime, so why risk all that time or money on something that might not work?
Don’t let these words fool you. The reality is, anyone can be a property developer. Yep, even those who don’t know the difference between a hammer and a spanner. All you need is passion and a determination to see it through till the end.
But house flipping is not a get-rich-quick scheme, nor is it a get-rich-slow scheme. In fact, it’s more of a “make a decent side income slow” scheme… but I suppose that doesn’t have the same ring to it.
So if you’re not expecting the world and are in it for the long haul, keep reading, as the following character traits will need some serious refining.
Charisma
The process of flipping is more than merely buying low and selling high. You have to have charisma and likability. When you approach lenders, sellers, buyers and contractors, this is your most powerful tool, not what your bank statement says. You have to have confidence to navigate the market and negotiate good deals, but at the same time, not be too overbearing and ignorant of what can be achieved.
Persistence
We’ve all read/seen the horror stories—just watch any episode of Grand Designs. Property developers are always running into problems. But what do the good ones do? Lace up their boots and get on with the job. New flippers tend to feel overwhelmed by all the little failures, and often want to give up half way through. But that’s just part of the process. To succeed, you have to take it all in your stride, know when to compromise, and keep on persisting.
Passion
The reason the majority of people get into house flipping is for the profit; however, success won’t be handed to you on a silver platter. You have to want it and make it a priority over everything else. If you lose steam and fail to reach the finish line, you’ll lose money when you finally sell.
Honesty
Lenders know every trick in the book and have an amazingly well-honed BS detector. Do not under any circumstances bend the truth to make yourself or your plans look better, they will see through it. In fact, never make promises unless you’re certain you can keep them—not confident, certain!
Patience
Property development can be a long, audacious task that could take months or even years, depending on the condition of the building. Make sure you’ve given yourself enough time to mull it over and decide whether or not it’s really something you have the stomach for. There’s no shame in admitting defeat. After all, it’s not for everybody.
Trust
When a contractor tells you not to skimp on materials or that your current plans aren’t up to scratch, listen and trust their judgment—providing you trust them on a personal level, of course. For example, your contractor may recommend buying flush sash windows instead of traditional sash windows in order to enhance the aesthetic appeal and efficiency of a building. This could significantly raise its value, offsetting the initial investment. You may control the money, but they have the skills and vision to get the most out of it.
Fear
It may not sound like a positive emotion, but fear is just a part of the process. You must accept that you’ll be living with the looming threat of going over budget (you should always add at least 20% to your final figure), making compromises, running out of money, or worst of all, losing money. Fear is good; it keeps you on your toes and thinking logically. Embrace it.
Once you’ve flipped your first house, the next time it will be easier; and the time after that, easier again. While it can be a tricky business to break, it can be extremely rewarding, both emotionally and financially. So if you dream of one day becoming a successful house flipper, stop thinking and start doing. You’ll never know if you’ve got what it takes unless you give it a shot!