Flipping Houses 101
Monday, January 17
If you are new to real estate investing or are interested in getting started I wanted to provide you with a Flipping Houses 101 guide. The rest of this site will provide a ton of material for more intricate strategies and suggestions, but let's start with a real hard look at the realities of real estate investing. As an experienced investor my personal perspective is that the market is pretty saturated with real estate investors. There are always deals to be found, but with so much competition, there are frequently too many people willing to pay too much for properties. A lot of investor newbies tend to underestimate costs and pay way too much for a property, get burned, and eventually drop out of the business. The next month ushers in a new crop of hopefuls to take their place.
Flipping Houses 101 | Get Educated Correctly
Real Estate books and tapes making investing sound easy and TV shows like “Flip That House” only further fuel that fire. My biggest pet peeve is with "Flip That House," because they tend show an inaccurate profit made on every deal, and they purposely don’t include closing costs, carry costs, or cost of sales (which can easily add up to 15% of the finished product) in the profit calculation. I can prove that several of the featured deals they illustrated as profitable actually LOST money…
Flipping Houses 101 | Networking
One of the best ways to become a successful investor and 'flipper' is through networking and partnering. If you are serious about investing, find some smart, experienced, hard-working people with resources that have been investing for a while and work with them. At least half of the many projects I’m funding these days, came to me from another investor looking for an experienced partner…
Flipping Houses 101 | Final Note
Before you run out and buy a hammer and a ladder and plunge into your first flipping project, you will want to do your due diligence and understand the house-flipping process from beginning to end. Only then can you decide if flipping houses is the best kind of real estate investment project for you.
