You can start Flipping Houses

Recently I received this message below:

Student: Is Flipping a House a Good Idea?

Me: Yes

How Do You make Money Doing it?

Me: By taking massive action with the information I share.

Flipping houses has become a trend. But how do make sure you make money at it?
Fixing and flipping houses can be incredibly profitable. For some it is a nice way to boost your existing investment portfolios, or to make up for losses in the stock market, tech investments and cryptocurrencies. For others it is the only way they have to get back on track, and ahead with their finances. But flipping houses isn’t just a good idea for the immediate and direct financial reasons.

Flipping houses can also be great for:

• The rewards of hands on DIY (Do it Yourself) projects
• Flexing your creative talents and passions
• Financial security
• Helping to revitalize communities
• Boosting the local economy
• Providing quality housing for others

How You Make Money Flipping Houses

The concept of making money by flipping houses is simple. It’s all about adding value. Or even simply unlocking value.

‘Flipping houses’ generally refers to fixing and flipping houses or real estate wholesaling. Real estate investors find properties which are undervalued, vacant or distressed, which they can add value to by repairing or controlling. Exactly how much real estate investors make on each property flipped really depends on a variety of factors. This includes; location, price range, amount of repairs needed, discount purchased at, how fast the property is flipped, borrowing costs, current value and how good their marketing is.

The process of flipping houses sounds simple:

1. Buy
2. Fix
3. Resell

But, how good you get at managing and navigating the other nuances above will greatly determine how much money you will generate.

Avoiding the Pitfalls of Flipping Houses

The single biggest pitfall is running out of money. Real estate investors that run in without learning the ropes, without doing proper inspections, or without creating a budget that allows for the unexpected, and overages are just asking for trouble. Winding up with a little less profit than expected is one thing. But it can get worse than that. If you run out of money during a project you may not be able to finish repairs, or hold onto the property until you can resell it. This can be avoided by learning how to create a good repair budget, accurately assess values, and manage contractors. But investors should also make sure they have backup finances lined up, or financial reserves on hand.

Having additional exit strategies can help too. If a rehab doesn’t go as expected, can you wholesale the property as-is, or rent it out to get some income coming in or at least break even?

Tips for Maximizing Profits when Flipping Houses

Improve Your Negotiation Skills:

The better you become at negotiating the more value and profit you can build in at every stage of the process. This goes beyond acquiring new investment properties. Don’t be too cheap. But do work to get the best deals with contractors, realtors, real estate agents, for sale by owners, lenders, motivated sellers and other service providers.

Don’t Over Improve:

Believe it or not one of the biggest blunders many make is over improving properties. At a certain point remodeling stops adding real value to what you can resell a property for. Just keep your repairs comparable to what the market is currently responding to at that time.

Get Good at Marketing as a Real Estate Professional

Marketing is a huge factor in how much real estate investors will make when they resell a investment or retail property . The better you are at marketing a property – the better chance of your maximizing its profit potential, the faster it will sell, and the faster you can move into the next deal. If you just don’t have the time for this, hire a professional that is great at it for some help.

I”ll See you at the closing table,

Marcel Umphery the “R.E.I. Successmaker”