New investors seem to really love the idea of flipping houses. (Thanks, HGTV.)
And I get it. It seems glamorous. It seems simple. It seems like it all happens in a snap.
But “seems” is the keyword here.
While I do understand the appeal—I’ve done dozens of fix and flips myself—here’s a little forewarning.
Far too often real estate newbies are shocked to find out the process is not at all like what you see on TV.
There are dozens of ways to invest in real estate. This just happens to be one I wouldn’t recommend starting out with, and here’s why.
Hold Off on Flipping if…
- You’re working alone. Fix and flips require a team!
- You don’t have extra money. Fix and flips often introduce costly surprises!
- You don’t know the market well. Choosing a good location is key!
Of course, there are a million reasons you should be flipping, but find out why these three elements can quickly turn a fix and flip into a project gone wrong.
Are you planning to do a fix and flip? Or have you done it already? What’s your take on the process?
Let me know in the comment section.