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Flipping Houses: Problems Faced by Developers

Updated: Dec 6, 2021

If you are looking for a viable investment strategy, flipping a house can be one. However, you have to consider the challenges in between. In the process of establishing a solid foundation in flipping homes, an investor must know how to play around with the whole process, including those factors/challenges that might impede project progress.

Being in the industry for several years, I know I've been vocal about this. I'm just being candid. I want to share with you all the things I may not always be familiar with, even if I've been in the business for years already. Real estate, in all honesty, is full of surprises. You'll never know what tomorrow holds. And as an investor who flips properties, there are still days where things seem to be unmanageable. But, if you really value your business, you will find a way to get rid of those days. In real estate, it's not always smooth sailing. There will always be rough days, but it's on you how you will maneuver shady challenges.

Some days, in the life of a developer, I'm speaking based on my personal experiences. I still wonder how I, together with my team, manage to work on several properties all at once with tons of paperwork, job site work support, materials pickup, project walkthroughs, etc. Believe it or not, these sometimes happen in just a day. Don't forget some unlooked-for circumstances on the side. Imagine how it can be such a long day?

Let's get into some of the problems encountered by the developers...

High-cost Bids

As you start working on your flip properties, in case you outsource subcontractors, you will have to look for 2-3 written estimates to get the work done. Well, I highly encourage you to get at least 3 bids as it will help you manage your flipping budget with proper control and allocation. However, the bids coming in may sometimes be out of the budget. In a case like this, as much as I want to maximize our resources, I will focus on the factors affecting the bids' costs. Take action by visiting the property and checking the areas to figure out factors affecting costs. It might be due to the materials since prices vary depending on the season, demand, supply, etc. It can be on the area measurement, the scope of work itself, the property condition, etc. Various factors may be considered, and getting on top of these factors will help you figure out why the bids coming in are either too high or too low.

Safety Concerns

While the work on the property is ongoing, some unanticipated circumstances concerning safety may arise. These may happen indoor or outdoor. Or worse, some safety concerns are caused by outdoor factors. Outsiders are trying to get in as properties are prone to vandalism, crimes, theft, etc. Personally, I've experienced having one of my properties dumped with trash in the garage and another property where the window cover is removed. These may not be as serious as any other safety concerns can be, but it is alarming. Better to check the property, take the time to drive down the alley, figure out the root of the issues before they can cause bigger damages on the property.

Work Mistakes

It is normal to make mistakes at work but, in real estate, committing one is pricey. Work mistakes in real estate are way too complex as they might affect other factors causing delays on the project. Worse, you might end up spending more. How can you get rid of mistakes while at the job site? Overcommunication will save you bucks. It is and will always be the best way to get on top of your game. If all parties involved in the project clearly understand the scope of work, what the property owner wants for the project, from materials to labor to costing; planning to execution, you can somehow lessen, if not avoid, mistakes. Of course, in the real world, you can't get rid of mistakes totally but, you can prevent them.


Real Estate Investment: Flipping houses, is one of the smartest, highest-earning with passive and long-term income an investor can venture in. However, if managed ineffectively, it can make your investment a flop. If you want to start doing business with real estate, you should prepare yourself for the abrupt circumstances, that might affect your whole business operation either negatively or positively. It's not just about growing the business, gaining profits, and securing your future. It's about how you face challenges in between. You are doing it wrong if you haven't encountered problems yet.

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