Lender · Portland Oregon · Member since 2016 · 15 posts · 10 votes
I’m one of three owners of a family run private money lending business out of Bend Oregon. We fund deals all over the NW but I’m now looking to expand into doing some flipping myself.
We help out flippers all the time and I’m getting the itch to do both lending and flipping.
I have my own 2 cents about the pros and cons when it comes to flipping. I’m curious to hear some other opinions. PROS?? CONS??
Pros - It's fun! If you like that sort of thing. And there are decent profits to be had if you buy right and have the right contractor and manage everything right. And sometimes it feels good to provide a nice home to someone. And sometimes people thank you for fixing up the neighborhood.
Cons - Dealing with bad contractors. Flipping can tie your capital up for long periods. Flipping income is taxed at a very high rate. Inconsistent deal flow can be an issue. Inconsistent pay days. Low appraisals. Evil inspectors. Buyers who back out of escrow. And sometimes people hate you for fixing up a neighborhood. Or your idea of fixing up is their idea of ruining it.