What Does It Take to Successfully Flip Houses?
Mar 14, 2018 / Fix and Flip
Have you been thinking about trying your hand at flipping houses? Buying old or run-down properties, fixing them up, and then reselling them for a tidy profit can be very worthwhile. There’s a good amount of money to be made here, but there’s also the potential of losing a lot if you’re not careful. To be a successful flipper, you need to have what it takes. Do you? Here are some of the keys to being a great house flipper.
You Have to Be Committed
Flipping homes isn’t a job for the timid. If it’s something you want to do, you have to jump in and do it. Since it may not be your primary job, you’ll have to put in time during the evenings and on the weekends. It’s easy to blow off working on the property because you’re tired, but if you get into that habit, it will take months to get the house ready to sell. Put in the time and the hard work, and you’ll be rewarded.
It’s Hard Work
Don’t let anyone convince you that flipping houses is easy. It takes a lot of work to determine the best properties to buy and what to do with them that both increases their value and makes them attractive to buyers. There’s more to it than just renovating the kitchen and putting in new floors. You have to do market research, watch the housing industry, and keep up with homebuyer trends.
It Takes Some Money
Flipping houses does require a decent amount of startup capital. The good news is that it’s actually less than what some small businesses would need. You don’t have to rent an office or purchase a large amount of inventory. You do have to have the money to buy a property and finance renovations. Once you get over that initial investment, though, you’ll get the ball rolling. Each sale will finance the next buy.
These are just a few of the things you’ll need if you plan on being a fix and flip developer. It sounds difficult at first, but once you get into it flipping houses isn’t just profitable, it can also be a lot of fun.
Jeff Hammerberg is the founder and lead coach at www.FixAndFlip.com, the nation's leading source of training and continuing education for residential real estate fix and flip investors.