How to Flip a House

If you haven't seen the many shows on television advertising and explaining how to flip a house this should help you find yourself well on your way to real estate investing riches through the process of flipping houses. While there are some negative connotations attached to flipping houses because of shoddy deals and shoddy workmanship in the past, you can create a positive reputation by doing things the right way if you follow the advice on how to flip a house below.

1) Find a suitable house in a suitable location. This is probably the most important aspect of flipping a house. There is no way a flip could be successful if you do not get an absolutely great deal on a house that is in good shape, needing only cosmetic repairs and touches, that also happens to be in a neighborhood where houses move and will get the price you are setting as your goal. While it seems like a little more than a mouthful each of these things is important to the success of your flip.
2) Have an inspection. This is also essential because your inspection should clue you into any unforeseen problems that may arise. You can either adjust your bid in order to cover the costs of those repairs or you can pull out of the project altogether if discovered and unanticipated repairs would eliminate the profit you potential you need in order to make the house flip worth your time.
3) Decide what must be done. It is best to salvage as much of the original structure as possible and make mostly cosmetic repairs to the house. The goal of a flip is to spend little and make a lot. Plan projects that can be completed quickly (carrying costs are the bane of the house flipper) and with little expense. Flooring, paint, and fixtures are a great way to make a large impact without spending too much money.
4) Get the work done. Whether you are doing the work yourself or hiring experts you need to get the work done as quickly as possible in order to maximize your profits. Plan projects to move quickly and avoid projects that rely on the entire property being useless while they are being performed as they risk putting other projects behind if they are delayed for some reason.
5) Be flexible with the price. If you stick to your budget you should be able to go with your original target asking price. You do not want to price the property more than the neighborhood will be able to support and you definitely want to avoid turning off potential buyers by turning down a fair offer too quickly. It is better to take a lower offer and sell the house quickly than hold out for a larger offer that never comes (all the while paying costly carrying costs).

Flipping a house is a trying ordeal and during the middle, it is likely you will decide that you aren't asking for nearly enough money out of the deal. The hours are long and the work is difficult but if you stick to it and don't get greedy you will find that the profits can be quite attractive by real estate investing standards and fairly quick to come. While the work is difficult the payoff is wonderful.

House Flip Success Story

Everyone who decides to flip a house has dreams of being the one to bring home the big one. You know that really huge house flip success story about how you made more money in three months of working on a house than you and your wife combined made last year. The sad truth is that very few flippers ever have a flip that good and those that do often do not manage to do so on their very first flip. If you don't have those dreams it's glad to see that you have your feet firmly planted in the sometimes harsh soils of reality.

Flipping houses is one form of real estate investing that has received a lot of media attention in the last few years and is currently the source of many interesting television shows that play on do it yourself channels on television. If you haven't managed to watch any of these shows you may be in a much better position to tackle your first flip than many who see these shows and get a false sense of confidence when it comes to bringing in a substantial profit by flipping houses. While the profits exist and are much better than most people would envision, the average first-timer doesn't fare on the higher end of the profit scales all too often.

In fact, most first time flippers make rather slim profits when the tremendous amount of work that goes into flipping a property is considered. One thing you will want to do when flipping your own property is to take care not to get too greedy in the asking price. If you can make ten thousand or more on your flip after all expenses are paid (including taxes, realtors, and any fees) then you are doing exceptionally well and should be congratulated. It is those who decide to go for fifty thousand rather than being content with ten that find themselves alienating a good portion of the population that may have been interested in purchasing the property from the very beginning.

In order to make your flip a success, you need to be negotiable on the price when all is said and done. This is where many people lose potential buyers and find themselves sitting on the market month after month until they find themselves in a situation where they must sell or risk losing the house and in this situation they are often in a position that they actually lose money rather than profiting.

Success stories, when it comes to flipping houses are widely available though many of them are just as widely exaggerated. Be cautious in your optimism when it comes to flipping houses but plan for profits and you will find that you are much more likely to get them than if you enter into the house flipping and real estate investing process without a proper plan at your disposal.

Turn your house flip into a success story by spending as much time in the planning process as you spend in the entire labor process that is involved and necessary when it comes to flipping houses. If you do this and budget carefully while sticking to your budget religiously you will find that you are in a much better position to have the success you are hoping to have.

House Flipping Sob Stories

What you don't see on many of the television shows about flipping houses are the many sad tales of promising flips gone wrong. These epic tales of house flipping sob stories are often precursors to financial hardships for quite some time as those who fail at their property flips work on recovering from their heavy losses and moving on with their lives. Some are hit harder than others but the snowball effect of a bad flip is often not even hinted out on the prime time televisions shows that are so proud of the many success stories that arise because of serious and studious efforts in the house flipping arena.

If you are planning to flip a house for a real estate investment you really need to take a step back and decide that you are absolutely not going to be one of the house flipping sob stories that are rumored about in Internet chat rooms. In fact, you want to be listed among the success stories. Unfortunately, that takes a great deal of proper planning that is almost never shown on these television shows. In fact, to put forth your best effort you need to devote as much time to studying and planning properties, prices, and home values in your area before you even begin to search for your first property to flip as you need to invest in the entire process of actually working on your first flip. In other words, months worth of planning need to go into your first property pick in order to lower the risk of failure and to greatly improve the odds of success.

The second thing you need to do when planning your first flip and avoiding a sad tale and a sob story is to be realistic and avoid great expectations. With your first flip, you are darned lucky to turn a profit at all. If you are expecting to make more money on your first flip than you made last year as a full-time employee you might need to make other plans. The first flip rarely goes as expected.

Third, you need to set aside at least twice as much money (preferably three times as much) as you think you will need for the work on the property in order to cover the actual costs that will be needed. There are inevitably tools, permits, supplies, and labor costs that wasn't counted on in the initial budget figures as well as the tendency to seriously underestimate the cost of the materials that will be needed in order to get the job done. If you don't have that much or can't spend that much and walk away without a loss then the property you are considering might not be the best property for your first flip.

Finally, you need to plan everything. Every day needs to be fully planned before you show up to work on the property and you need to have all the materials you will need on hand from lunch to drinks, to tools and supplies. Trips to the hardware store, lunch breaks, and coffee run quickly kill a day and any productivity that may have been made during that day. Avoid these costly delays by proper planning and you will discover that you have a real estate investing success story worth writing home about.

Managing Money During a Flip

Managing money during a flip is an essential skill. If this is your first time flipping a property it is probably more important on the first flip than any other as you need to fully realize how much things cost and how quickly those expenses can build up. It is so simple for the budget on a house flip to get completely out of control. For this reason, you need to take control of the financial situation from the very beginning.

Begin by establishing a realistic budget for the entire project. If you find yourself spending more money in one area than you had originally planned you need to either revisit the initial budget and plan for adding more money to the pot or you need to make cost lowering adjustments elsewhere along the way to recover the excess. You will need to have a firm idea of the projects you are going to tackle, big and small, as well as the costs involved in each project. Take a walk through a hardware store and get a firm grasp of today's prices on the hardware, equipment, and supplies you will need to complete the job.

Use contractors when necessary but sparingly. There are times when it will cost much less to use a contractor on a project than to muddle through on your own. There are also times when local laws require a contractor. You need to use contractors for these times but you need to avoid paying the princely labor costs contractors charge for things that you could easily do yourself. You never want to spend a penny on a flip that you don't need to spend and labor costs are a huge budget buster.

Get permits first and upfront. Time is money when you are flipping a house and once you start the work that time is precious. Make sure you have all the permits you need and that they are paid for before you begin the project in order to save time and money after the project has commenced.

Then create a habit of accounting for every penny spent throughout the day at the end of every day. This becomes a good habit to have for your first and all subsequent flips. By doing this you will have a solid grasp of how much money you are spending as well as how quickly you are spending it. You will need money to spend on little things throughout the course of the project so if you are spending money too fast upfront you may not have the money needed to take care of the small details that mean a lot when all is said and done.

One huge way to better manage your money during a house flip is to make a conscious decision and consistent effort to work according to your tastes. Chances are quite good, especially for a first flip that you will be working on a house for those who have less financial means than you may have. For this reason you need to keep your project within the budget of your buyers. This will save tons of money. In other words, a lower-income community cannot absorb the costs of granite, marble, and hardwoods in most situations so don't go to that expense.

In order to turn a solid profit when flipping a house or doing any type of real estate investment you absolutely must have a firm grip on your money, where it is going, and what your plans are for the money. The less money you spend the more money, in many cases, you stand to bring home in profit. Spend the money you need to spend in order to improve the value of the home but avoid luxury expenditures that aren't necessary for the neighborhood or the home in question in order to maximize the potential profits you can bring home.

Investment Advice For First Time House Flippers

Too many investors buy and sell real estate at inappropriate times and for unfavorable prices based on intuition, unrealistic investment strategies, or poor investment advice. Here is some investment advice for first time house flippers from Pri.

Even in today's economy, there are great fortunes to be made through real estate investments but also fortunes can also be lost. The investment deal that doesn’t turn out the way you planned; after all of the work, sweat and tears can be a nightmare. Consider the following house flipping investment advice as you plan your own strategy:

Ensure that you have correct and updated information regarding the property. Don’t rely on the listings or the internet alone. Google maps street view can give you an overview of the parcel and the surrounding area but the images can be 12 months old. Whenever possible visit the property in person. It may not be in the same condition as described in the listing. The best investment advice is to check the public records or hire a researcher or title company to search for any encumbrances. A long lost heir showing up in the middle of renovations can flop your flip.

Examine the property to ensure that it will meet your anticipated plans. If you plan to sell it for a 30% profit, make sure that the property has the potential to pull it off. Expect to make small repairs or upgrades but for your first few flips stay away from those that require extensive work. For the inexperienced investor, it can be difficult to gauge the resale value of those extensive projects. The home improvement shows tout that a new marble bathroom can increase resale value by 15K but in reality, it may only add 3K.

If you obtain a loan for the property, ensure that the terms will be manageable for at least a year. Although the goal is to buy, fix, and sell quickly, the reality is that you have no idea how long you may have the hold the property. As with any investment, there is a risk but every risk should be calculated and acceptable. The best investment advice for new flippers is not to assume more debt than you can afford to manage on your own if the property doesn't sell right away or if you have to sell it for less than you hoped.

No matter how much work you do on a house it will be nearly impossible to sell it for 250K when no other house in a 3-mile radius has sold for more than 175K Although there is still good money to be made flipping houses, you want to manage your risk with realistic outcomes.

Your first real estate flip can either be a success story or a cautionary tale, to ensure the former, the most important real estate investment advice is to examine everything.

Common Risks Involved in Real Estate Investments

Here we will look at some common risks involved in real estate investments. While a good many millionaires will agree that their fortunes were made in real estate, the honest ones will also tell you that they've probably lost a few fortunes in real estate along the way.

This is a risky business and every property purchased doesn't always pan out to become a successful investment. There are many risks involved in real estate investing and you would be going to battle unprepared if you didn't take a moment to carefully study these risks and work to avoid them when planning your property investment strategy.

Unfortunately, there are very few strategies that can be called "one plan fits all risks" for real estate investing, as each type of investing is inherently different. This means that each type of real estate investment will involve a new set of risks. Below you will find a brief overview of different styles of investing and the common risks that are involved in each.

Rental Properties

This type of investing offers some risks that are unique and some that are also risks when investing in properties that are lease-to-own or rent-to-own as well. First and foremost is the risk of failing to make a profit. If the property in question cannot achieve an adequate monthly income to cover the expenses of operating the property then it is not a solid investment.

Other risks include the risk of getting bad tenants. This is particularly hard on first-time investors. Bad tenants are costly and in some cases destructive (which leads to even greater expense). Vacancies are another risk for rental properties. These properties are only costing money as they sit empty rather than earning money as they were intended. Short turnovers are in your best interest as are long-term tenants.

"Flipped" Properties

This is one of the most enjoyable types of property investments for many 'hands-on' investors. This allows the investor to roll up his or her sleeves and take an active role in creating the masterpiece that will eventually bring in serious revenue (at least that is the hope). This is also one of the riskier investments, particularly when trying to turn a profit in what is known as a buyer's market.

The risks are simple but often overlooked and they can have a significant impact on the overall success or failure of the project. First of all, the biggest risk is in paying too much for the property.

Other risks include underestimating the costs of repairs, overestimating the ability of the investor to do the work him or herself, taking too much time, experiencing a downturn in the housing market, making the wrong judgment call for the neighborhood, becoming overly ambitious, and getting greedy. Sometimes it is much better to walk away with a lesser profit than to end up losing money by holding out.

Personal Residence

Keep in mind that your personal home is essentially an investment. The intention is that your home will gain in value over time and that equity in your home will build as you age. There are risks involved in this transaction as well. Buying a home that is in a 'borderline' area or one that is not showing obvious signs of growth is one of the biggest risks. This puts your home in the position to lose rather than gain value.

This can make your home a burden rather than the investment it was intended to be. Other risks involve is becoming involved in a loan situation that is not at all beneficial (such as an adjustable-rate mortgage or an unreasonable balloon payment).

Perhaps the biggest risk of all when purchasing a personal residence as an investment is failing to get a proper inspection that could rule out potentially costly and even dangerous problems within the home you purchase for you and your family.

Toxic mold is one problem that comes easily to mind that most proper home inspections would almost immediately rule out. Others include structural problems that are costly to repair and dangerous to leave in disrepair. Each of these risks should be considered before an offer is made on any property.

For those seeking to turn impressive profits in short order, real estate is one way in which this can be accomplished. It is in your best interest however to be aware of the risks that are involved and take careful steps to minimize those risks. Taking these steps now may cost a little more on the front end but in many cases the payoff for doing so well outweigh the expenses.

Fun and Profit While Flipping Houses

If you want to have fun while making a profit flipping Houses and you are somebody who is on the edge of your seat week after week as people on cable television seek to successfully turn a lump of coal of a house into a diamond that is suitable for kings and queens of the middle class to call home it is quite possible that you have considered 'flipping' a home on your own.

This is a great way to make a nice tidy profit in real estate rather quickly if proper planning and attention to detail is made in the process.

Believe it or not, when done correctly and within a reasonable time and budget constraints, projects such as this can be a great challenge that is also a ton of fun. First of all, the average citizen isn't allowed to play with power tools on a regular basis and Tim Allen has taught us exactly how fun power tools can be.

Keep in mind that he has also taught us just how dangerous they can be as well. The point is that it is often fun to learn new things and for many of us, working with power tools is a new thing. For those experienced with power tools, there are still likely to be some fun new things on the horizon when doing a real estate flip.

Even if power tools aren't exactly your cup of tea, perhaps you have always wanted to try your hand at creating a color scheme or a trial run at renovating a kitchen or bathroom. Beyond a great way to have fun while turning a profit, a house flip can be a great practice session for changes you'd like to make within your own home.

Most of us learn best by making mistakes. Isn't it best to make mistakes with Formica or Corian (r) rather than the granite countertops we'd prefer in our own kitchens and baths?

This also gives you the opportunity to see how things you are considering for your home look in other homes before incorporating them into your home. If you are considering a certain type of laminate flooring, try it in a house that you are flipping. This is the ultimate opportunity to use trial and error when making design and décor plans for your own home. Even better is the fact that you can be working towards a profit as you do just that and I personally do not know of anyone that does not appreciate a nice hefty bit of profit every now and then.

Another fun thing about flipping real estate is that you often get the opportunity to work with the people you love. This is a great opportunity to get friends and family involved in the process of creating a masterpiece right by your side.

The price for their time and labor is often some good music, a tasty pizza, and a couple of cold sodas (or beers provided the work is done for the day and everyone is walking home of course).

Even children can be of some help in these projects though you want to be very careful that they aren't too much help with power tools and paintbrushes. Typically have older children help with landscaping projects and find someone to care for younger children (the tools, fumes, and temptations for small children simply may prove too risky to be practical).

Flipping: Fast Real Estate Profit

Flipping Houses for Fast Real Estate Profit. This works by buying properties that are in need of either minor cosmetic repairs or in need of serious renovations, doing the work, and selling the home for a much greater price. In theory, this brings in a significant amount of profit in a rather small amount of time.

This is the case for many who attempt to flip properties but it takes a little more than the idea in order to make the process work. For this reason, there are many who end up sacrificing profit or losing money in the process when plans aren't well-conceived.

If you are considering a future in real estate investing, this is one of the quickest ways in which investors can turn a profit. It is also a method for bringing in high profit in a short amount of time. Unfortunately, this once closely guarded secret has gained some degree of infamy and there is fierce competition for the undervalued properties on the market as more and more would-be investors decide to throw their hats into the collective ring.

If you are considering real estate investments in general and house flipping in particular there are some things you should keep in mind.

1) Treat this as a business rather than a hobby. Far too many investors do not take their investments seriously. This is a mistake because in this business time is money and every month that the house isn't sold is a month that the house is costing you money. Create a plan, make a schedule, and stick to them both.

2) Remember that this is a business. You are not investing in properties to make friends or seem nice. You are in this business to turn a profit. You cannot be timid about making low offers. The ability to buy low and sell high is the lifeblood of this particular business.

This means that you are quite likely going to hurt feelings and make people angry (because they often place emotional prices to their homes that are simply not economically feasible). If you cannot deal with this reality then you are going to have some degree of difficulty gaining the high profits you are seeking. Nice guys finish last and you can't really afford to do that in this line of work.

3) Pay attention to the market and the economy. This is vitally important. Many 'flippers' will lose their shirts if the market collapses.

This does not drive the value of properties down so much as it brings them back to their proper values. Investors that were counting on an ability to sell above the actual value of the property were left holding the bag (or rather notes) on these properties for quite some time until they could be sold. Some never managed to sell these properties and were left dealing with the expense in addition to the costs of the upgrades.

Do not buy in an inflated market if it can be avoided unless it is during the very beginning of the inflation (before property developers have the opportunity to create a surplus).

4) Do not allow it to become personal. Far too many first-time house flippers decide to create a work of art rather than a business investment. It is tempting when making cosmetic and structural repairs to go ahead and create a dream home.

The problem with this is that depending on the particular market you are unlikely to recoup the costs involved in doing so. The goal is to invest little and profit large. Granite countertops are lovely but not at all necessary in a neighborhood filled with those of humble means. Cater to the tastes and budgets of your target market rather than your personal tastes.

Despite the risks involved in flipping houses as a real estate investment there is no denying that fortunes have been made doing just that. Even in the current housing market, there is a great deal of promise available to those who can do the work quickly and inexpensively. People still want to buy these lovely homes rather than buying a home that needs to be made over after the price of purchasing.

House Flipping Explained

Why flip? Here we attempt to explain flipping. There indeed may come a time in your life or business when you’ll want to hang onto a piece of property, although you’ll only be interested in keeping certain types of property.  If you’re just starting out, flipping a house may be an ideal way to get started.

Basically, there are three ways that you can flip a house, although each one has its own terms, motivation, and type of property.

The first method is known as retailing. What this means, is that you buy a house in bad shape, do the repairs to fix it up, then turn around and sell it.

There are a variety of houses in need of repairs out there, and several ways that you can quickly flip a house to net profit.  All you need to know are the techniques that will get you the most money in the least amount of time.

The second way you can flip a house is though wholesaling.  Wholesaling involves finding a home for sale then flipping it to an investor for a fast, yet small profit.

To do this, you’ll need to know the real estate investors in your area, the types of homes that flip the best, and how to fund your property so you can flip it to them.  If you live in a big area or a city, you’ll find that using the wholesaling method of flipping houses is actually easier to accomplish.

The third way to flip a house is by assigning the purchase.  Using this method, you’ll commit to buy the house.  Instead of closing the deal yourself, you’ll assign it to a real estate investor - of course for a small fee.  The investor will take the contract over and close the purchase themselves - flipping the house.

This can be very profitable, especially if you invest in the right home.  You don’t need to have your contract worded any special way to be legal, although you will need to determine the assignment fee.

If you’re looking to break into the real estate market and make big bucks, you’ll need to learn all about flipping houses.  Flipping houses is very profitable, especially once you have learned the basics. The first and third methods are the best, although they will both take quite a bit of work on your part.

Restoring homes isn’t easy, and you’ll need to have a team qualified to handle any repairs.  Assigning the purchase may be difficult when you first start out, although it will get easier with time.  If you stay at it and do your best to make a profit - you’ll be an expert at flipping homes in no time at all.

Has Television Changed Real Estate Flipping?

If you take a look through the television stations on almost any given day there is a television show somewhere that features home improvement, real estate investing, or some sort of combination of the two.

Variety of shows

From shows that teach people how to sell homes that have lackluster reviews to shows that teach viewers that it is possible to purchase, repair, and re-sell a home in a matter of weeks for astronomical profits, there are shows that appeal to the entrepreneurial wannabes in audiences around the globe.

These shows have made and lost fortunes a few times over by convincing viewers that they too can do the wondrous things seen on television. The truth is that many viewers are capable of doing these things but television never really shows how hard the work actually maybe.

Blood, Sweat, and Tears

The television cameras do not always show the blood, sweat, and tears that go into making these projects successful and rarely mention the countless complete and total failures that occur along the way.

The cameras are also not too keen on showing up at 4 am and rolling well after midnight when the work for the day is finished. It doesn't catch the heart attacks and nightmares as credit cards are going dangerously close to being completely maxed out while dreams of quick riches fade right in front of investor's eyes.

This does not mean that every project is doomed to failure only that things are not always as rosy as they may appear to be on the television shows. Flipping houses may seem to be a bit glamorous and a lot of hands-on. The problem with that is that too few people really realize how much work goes into the hands-on part of the program. This is not easy money no matter how much the television cameras would like to convince you otherwise.

Has Potential

It is very possible to turn a substantial profit in a relatively short amount of time if you keep your cool, use your head, and buy and sell in the right conditions. The problem is that so many people do not consider the big picture and find themselves in over their heads and out of money before the project is anywhere near completion.

One thing that television has definitely done for this line of work is to make competition for the flippable houses a little fiercer. The early bird in this business gets the worm and while the cheapest house isn't always the best candidate the less competition you have driving the prices up, the better in this situation.

Fortunes Can be Made

The goal is to buy low and sell high. Most people do not have a terrible amount of competition, as of yet, on the selling high portion of the program. The real trouble at this point in time lies in the buying low portion as there are many more would be real estate investors that are interested in buying the inexpensive properties than there are that will actually see the projects through from beginning to end.

So yes, television has greatly changed the way people invest in real estate. Whether this is truly good or bad for the overall real estate market remains to be seen. In light of the recent pandemic, it is to be expected that some of the popularity may diminish. The sad thing is that this is still one of, if not the best ways to make a large sum of money fairly quickly that is legal in the world today.

Fortunes can be made and lost in real estate; the trick is always in placing your bets on the right property at the right time. For those who are willing to take the risks associated with this type of investment in today's market and those who are willing to wait for a slight upturn in the market, the profit potential is phenomenal.

Beginners Guide to Flipping Houses

Flipping houses is becoming a big business in the world of real estate investment. Unfortunately, it takes all kinds of ‘flippers’ to make the world go around and some of them aren’t nearly as conscientious as others. If you are going to get into the business of flipping houses and want to make a living and build a good reputation, for producing quality products you need to see to a few details throughout the process.

While these aren’t guarantees for success these are some tips that will minimize the risks you could face when flipping properties.

ABCs of Flipping Houses

All new things can be a little frightening or intimidating at first glance. The same is definitely true when it comes to flipping houses. Many people feel several times during their first flip that they have gotten in over their heads. The truth is that it will take more than a few flips to feel comfortable with the process. Most people make very little, if any real profit on their first flip and write it off as a learning experience only to enter into the next flip with newly learned lessons and a positive attitude. Learning the ABCs of flipping houses is a great place to begin and can help you avoid costly mistakes made by many first time flippers.

This is a small start on the ABCs of house flipping and real estate investing but I think you get the picture. Good luck!