Why You Have to be a Jerk to Excel in House Flipping

April 21, 2012 - PRLog -- House flipping is not about making friends.  Sellers will hate you for making low ball offers.  Contractors will despise you for always negotiating their bids down.  Buyers will be annoyed when you don't give in to every demand they have.

1) Sellers can Kiss Our...

House flippers must make their money on the front end of a deal.  This means that you have to buy houses for less than market value.  If you don't do this, you will not be successful.   Some sellers get offended with "low" offers.  As a house flipper, you need to remember that it's critical to work with motivated sellers.  If there is a reason they have to sell fast, they will be a lot more receptive to you purchasing the home at a discount.

2) Contractors are a Pain in the...

Yes that's right.  Most contractors are not pleasant to work with.  Imagine how unruly they get when you inform them that they will not be getting the full amount of their original bid of the work.  This is the name of the game.  You have to negotiate every quote you receive.  You're not in this business to make friends.  You are in it to make money.

3) Buyers Love to Push the Envelope

Buyers aren't all the same but they can have a tendency to push the envelope with investors.  They think that every investor is worth big bucks so why not ask for extras.  This is fine when you are negotiating the contract.  It's not so cool after the contract is negotiated and they try to convince you that "nice to have" items are "mandatory" items.  While you have to use your discretion to get to the closing table, don't let a buyer push you around.  This can really cut into the bottom line.  

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