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Most new house flippers fail within 12 months because they approach flipping as a hobby instead of a business. This episode provides the blueprint for survival with 10 critical mistake patterns and their solutions to help you build a sustainable house flipping operation.
• Mistake #1: No consistent deal flow - commit to three acquisition channels with weekly targets
• Mistake #2: Buying bad deals - use the Safe Offer Cap formula (ARV minus fixed costs, rehab costs, and profit)
• Mistake #3: Underestimating rehab costs - create detailed scope with line-item estimates plus 10-15% contingency
• Mistake #4: Contractor chaos - require licenses, insurance, written scopes, milestone payments, and regular site visits
• Mistake #5: Overspending on finishes - match neighborhood comps, not personal taste
• Mistake #6: Ignoring permits and code - map required inspections before demo and budget the time
• Mistake #7: Running out of cash - conservative ARV, full funding before closing, respect your Safe Offer Cap
• Mistake #8: Death by the last 10% - run punch lists and pre-inspection walkthroughs
• Mistake #9: Weak project management - clear work orders with deadlines and milestone-based payments
• Mistake #10: Botching the exit - ensure property is clean, safe, fully functional before listing
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