Flipping homes is big business in America and can be fairly rewarding when done correctly. A lot of people jump into the industry without knowing much about the technicalities, however. Magazines and shows make house flipping seem rather easy, but there’s much more to flipping houses than simply buying and selling. And unless you’re rich, you’re going to need loans to help fund your flipping venture.

Some people have had financial issues in the past, so naturally they are worried about being able to obtain home loans with bad credit. Today, you can find a lot of bad credit mortgage options, making buying a home with bad credit a lot easier.

Aside from obtaining funding, the following issues are commonly witnessed in the house flipping industry.

Unforeseen Delays

It would be great if you could sell a home as quickly as you could buy one, but this isn’t always the case. There are different reasons why a sell may be delayed – either on your part or the part of buyers. Your home may sit on the market longer than anticipated based on a slow market or high asking price or you may experience construction delays if suppliers and contractors take a bit longer than anticipated to complete your remodel.

Government Regulations

After the housing bust back in 2008, the Federal Housing Association wanted to discourage house flipping due to the high risk of foreclosure, so they set forth a slew of new regulations. This included the rule that requires FHA home buyers to own a property for at least 90 days before it can be sold. If you try to sell your home for more than twice what you paid for it, the FHA requires you to obtain two appraisals. You’ll have to pay for whichever appraisal is lower. Familiarize yourself with FHA laws before you jump into house flipping. The FHA also has bad credit mortgage options for home buyers. You can go to lenders to learn how to get a home loan with bad credit.

Unexpected Expenses

It’s very important to have homes inspected before you buy so that you can determine the costs for fixing it up. Most house flippers buy fixer-uppers because they are cheap and offer a larger upside if a remodel can be completed inexpensively. In order to do this, you’ll need to determine how much it will cost to renovate the property to see if it’s something you can afford. The last thing you need is to have a pipe burst and cause major flooding because you failed to have the plumbing inspected! These type of mistakes could deplete your financial resources and run your flipping business into the ground.