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• 5 things to know about Flipping Houses

   

  Author:  Scott Hurst

   

  There has been a lot of interest in flipping houses over the last few years, mainly due to the success of shows like Flip this House and the self proclaimed gurus on the Internet.  You may be looking around to find a gem, buy it, fix it up, and then sell for a huge profit, right?  That’s not the usual case, nor is it what happens to most of the naïve and inexperienced flippers.
   Flipping is an art that takes lots of time to learn, and is not for just anyone.  You have to learn your market, patiently look for properties that offer a good profit, and have the ability to coordinate repairs and do the marketing needed to sell.  I’ve compiled a list of 5 things you should know when learning to FLIP a house.  This is not a list of the most important or the least, but should get your started. 

  #5.  Build a team – If you are going to be a success in the real estate market, you need to have a team of people that can help you on your way to riches.  Researching your purchases, presenting an offer, making repairs, and marketing the sell are all things that you will be doing; why not enlist people to help you with this so you can do what your suppose to do, find deals!  Having the right realtor, contractors, and brokers can help you get in/out of deals fast, so you can move on to bigger and better flips.  

  #4.  What you DON’T see is also what you get – I don’t know how many times I have inspected a property to find something wrong that ended a deal.  On the other hand, I’ve seen people buy a property without doing the proper inspection and learning  later that they had a major leak, foundation issues, mold, or even title problems.  Always inspect before you buy and better yet, hire an inspector!  Even the big boys like the Trademark Properties, Montelongo Home Buyers and the like buy site unseen, not good practice and not good for a FLIPPING business. 

  #3.  Educate yourself – Would you go buy an airplane without learning to fly, of course not!  Take your time and learn your market before jumping into the real estate flipping field.  There is a lot to learn and don’t be afraid to ask veteran flippers for advice or visit your local investor group.  If there’s one thing I know, it’s that FLIPPERS love real estate and they love to talk about it even more! 

  #2.  Make your profits – You might be buying that 200,000 property for only 170,000 and have a nice amount of equity built in, but have you calculated for closing costs on the front and back-end, marketing, repairs, holding costs and even realtor fees?  There’s more to flipping than buying at a discount.  You make your profit when you buy, not sell, so make sure that you have calculated for all expenses before making your offer. 

  #1.  Love it or leave it -  Its one thing to talk about flipping and doing some research and even making offers, but its another thing to actually reel in a deal.  If you’re not sure about real estate, or if you’re just curious because of all the hype, you may want to look into some other job.  There are many fields related to real estate that do not require putting your money on the line such as Loan Officers in the Mortgage field and even getting your Realtors licence.  Being a flipper is a dedicated and tough job that requires a high learning curve and alot of time to master.  If you are unsure of where to get started in investing in real estate, contact your local investors group or a ixperienced agent in your area that can assist you.