The Flipside of Flipping Houses
 
The Flipside of Flipping Houses

Television programming and infomercials of all styles will have you believe that flipping houses is a fun and fascinating way to turn a serious profit in real estate. It is just that, though it is also so much more. There is a lot of money that can be made by flipping houses (buying homes in various states of neglect or disrepair, making the repairs, and then selling for a sizeable profit) by the right professionals. However, there is a massive amount of work that is actually involved in the process of making that money.

The sheer volume of work, the time consumption, the sleepless nights and days, and the sometimes disgusting chores that must be done in order to get a run down property in sellable conditions is often glossed over on these television shows for various reasons-most of all the reason that the average Joe sitting at home wants to believe that he too can do this kind of work for quick profits and these images are not conducive to that illusion. In other words, this is a tough racket no matter how easy they attempt to make it seem.

Poor planning is the bane of a property flipper's existence. In order to have a successful flip (and by that I mean maximum profit-minimum investment not any profit at all) you must carefully create a plan of action and implement that plan as quickly and cost effectively as possible. You must also realize that there are likely to be rain delays, hiccups, and disasters along the way. Proper planning can eliminate some of the disasters that may occur but it will not eliminate every conceivable possibility that will come along. More importantly than anything else however, proper planning can limit these occurrences as well as their severity to the overall time schedule and budget.

Another important thing, which falls under proper planning, is having a proper inspection done. The importance of this step cannot be stressed enough. Knowing the problems and potential problems that exist in a property can help you create a workable timetable and budget for the property flip. This also notifies you of potential problems you may encounter along the way. The television shows that deal with this week in and out often leave out this oh so important step and many would be investors find themselves investing in a money pit rather than a home that has potential to turn the quick profits they are hoping for.

You should make every effort to insure that your first flip is a simple cosmetic flip (this is something that a good inspector can assist with). In fact, this should be the case for your first few flips and then you can move on to more substantial flips that involve more work. The reason is simple-while the profits will be somewhat smaller on these cosmetic flips it gives you, as the investor, the opportunity to learn to budget, set timetables, and live within those budgets and timetables. This is where most investors go astray when taking on projects that are above their means. A house flip is no small endeavor and there is a lot of money to be lost along the way when this particular real estate investment doesn't pan out. Start small and ignore the dollar signs in your eyes, then work up to more extensive projects.

Another pitfall that many investors make is not catering to the audience they are hoping to attract in the property being flipped. A bachelor's pad does not need 3 or 4 bedrooms. At the same time, a family home typically needs at least 3 if not 4 or more bedrooms. Other considerations should be fenced in yards, landscaping, and maintenance requirements. Low maintenance lawns are in high demand these days particularly low maintenance lawns that appear to be well landscaped.

Keep these things in mind when flipping your real estate and you should see some degree of success-just remember, the rewards when you are doing things you never thought you would be doing during the process.



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Articles
Are You Committed to Your Real Estate Investment?

Benefits of Flipping Real Estate

Buying Real Estate for Your Family

Buying Real Estate Foreclosures

Common Risks Faced by Property "Flippers"

Common Risks Involved in Real Estate Investments

Curb Appeal Matters When Selling Real Estate

Does Staging Sell Real Estate?

Finding the Right Realtor for Your Real Estate Needs

Flipping Houses for Fast Real Estate Profit

Flipping Houses for Fun and Profit

Has Television Changed the Face of Real Estate Investing?

How to Find a Good Real Estate Investment Property

Is an Inspection Really Necessary?

Is Real Estate Investing for You?

Lease to Own Real Estate

Mortgage Advice for Residential Real Estate

Real Estate Investing for the First Timer

Real Estate Investing

Real Estate Investors Offer Perks to Retain Tenants

Selling Real Estate in a Sluggish Market

The Flipside of Flipping Houses

Things to Avoid When Flipping Real Estate

Things to Look for When Buying Personal Real Estate

What is Pre-Construction Real Estate Investing?

 

Disclaimer: The Publisher has strived to be as accurate and complete as possible in the creation of this website, notwithstanding the fact that he does not warrant or represent at any time that the contents within are accurate due to the rapidly changing nature of the Internet.

This site is a common sense guide to The Flipside of Flipping Houses. In practical advice websites, like anything else in life, there are no guarantees of income made. Readers are cautioned to reply on their own judgment about their individual circumstances to act accordingly.

This site is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to seek services of competent professionals in legal, business, accounting, and finance field.

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