Perhaps one of the most well known and attractive concepts in the world of Real Estate is that of flipping houses. House flipping consists of buying a house, remodeling it, and selling it for a profit. However, it is not as simple as it sounds. There are many important things to consider before becoming a full-time house flipper.
First of all, it is important to know the real-estate market. House flippers do really well during a boom and have much control over what they sell their houses for. However, during a low point in the real-estate market, these flipped homes can be listed for a very long time. Many people will choose to buy a foreclosed property from the bank. Doing so often means buying the house for a less expensive price, but it also comes with a few cons. If a property has been foreclosed, this means that the previous owners were not able to pay their mortgage. If the mortgage could not be paid, chances are upkeep of the property was subject to many different issues. Rehabbing these houses can prove to be a bigger project than it seems.
Another important concept to consider (like Peter Harris mentioned on his blog) before getting into the business of house flipping is having knowledge of, and a knack for, home improvement. This may seem obvious but, in fact, it is possible to fix and flip a house with very little knowledge about home improvement. There are professionals to be hired every step of the way. Yet if someone is able to do the work themselves, this would be a huge money-saver. There are also instances where paying for a professional might be too far out of the budget, or a last minute problem arises. These are times when owning a tool box would come in very handy.
Perhaps the most common word in real-estate is location. It is a well known fact that the location is hands-down the most important thing to consider when buying a house. Because of this, it is important for a house flipper to know the area in which they are purchasing a home inside out. Knowing what style of home would fit in, how large the home should be, and what surrounding homes are like are just a few things a house flipper should be aware of before deciding to flip a house.
While flipping houses can seem like an attractive and fun concept, it is much more complicated than that. There are many more important things to consider before deciding to flip a house. A full time house flipper must know the real-estate market, have home improvement skills, and be willing to research their investments. A real estate coach can help with these decisions as you get your feet wet in the industry. Thus, flipping houses, if done right, can be a rewarding and profitable endeavor.