Ask anyone who considers the idea of flipping real estate, and most likely they have the notion that to flip real estate you need to do little more than purchase a house low, fix it up for little, and then sell it for a lot.
I wish flipping homes was that simple.
How did they get this idea that flipping homes was such a cake walk? With the help of one of the numerous infomercials or television programs that make the idea of "flip that house" synonymous with quick cash, far too many people have spent a bundle on these get rich quick programs.
Somehow the understanding that flipping homes needs to be approached like any other investment transaction - with care, patience, and guidance - gets lost in the shuffle, and in its stead is the idea that to flip this house - any house - there is precious little that needs to be understood past the rudimentary details.
Of course, if flipping houses were this simple, pretty much everyone would be engaged in the business.
Clearly that's not the case.
Thee are plenty of people who start flipping properties, then get out quick because they realize that there isn't any profit margin for them.
The problem isn't that flipping homes isn't a lucrative thing to do.
The real problem is that people go about it all wrong.
What they want is to flip properties without doing any real work.
Too bad for them.
They will begin to panic, thus flipping property before it is ready to fetch the top dollar.
Another commonly made mistake when house flipping is the failure to understand how much the home is worth.
Prior to learning how to flip a house, it is vital that you understand the intricacies of property evaluation, walk through determination, and return on investment potential.
Thus, many a property flipping venture begins - interestingly enough - not in a neighborhood looking for good deals on semi-dilapidated homes but instead in the City Clerk's office where thoughts of real estate flipping are preceded by an education of taxable worth, last sale price on record, and also sales prices received on comparable properties that sold in the general neighborhood.
> In fact, let's go that one better.
If you want to make money flipping homes, then don't even start in your local town, unless you happen to live in an area of affordable homes in a desirable neighborhood where you can find such homes.
Ideally, you will search for flippable properties outside of your home town with help of a good team.
As you can see, real estate investing, flipping, and other associated ventures are not for the uninitiated! No matter how simple an infomercial makes the transaction to flip real estate sound, the amount of research this kind of undertaking demands is best learned with a seasoned real estate investor who knows how to flip - that house, apartment building, or commercial property - without going broke.
Not only will this individual alert you to potential pitfalls when you try to flip this house versus flipping homes zoned for both commercial and residential use, but she or he will also work hard at your side to help you understand that flipping houses is best done with assignable contracts, that flipping properties requires an ironclad bottom line, and that flipping property can easily turn into a negative cash flow situation if you do not have the budget strength to pull off the deal.
If you're getting your advice on flipping real estate from an infomercial, then good luck to you! Flipping real estate isn't hard, but it sure is a lot more involved than they let on.
Their job isn't to help you make money, but to make a boat load of money for themselves! Find a good mentor for flipping homes.
Get someone who has been flipping real estate for some time.
Then have him or her help you construct a team for flipping properties.
That's the way to win!