Real estate reality TV shows make flipping houses seems easy. They purchase a rundown property, renovate it, and sell it for profit. In reality, house flipping is easier said than done. Flipping entails money, time, labor, and effort. Despite the complicated process involved in flipping houses, a lot of real estate investors prefer to use this strategy because it offers an excellent return on investment. Real estate investors who flip properties prefer to purchase foreclosed houses because they see them as good deals. With home price appreciation, more and more investors become in flipping homes.
As a flipper, there are a lot of things you should keep in mind. First, you need to find a suitable property at a relatively affordable price. Second, you should have enough money to cover the cost of renovation. Third, you have to find a reliable and dependable contractors who will help you get the job done at a reasonable price. Lastly, you have to sell the property at a cost that is enough to give a decent profit that will compensate for your investment: money, time, and effort.
Scott Yancey — Flipping Vegas
Scott Yancey is a seasoned real estate investor who uses flipping as a strategy. Throughout his years in the industry, he experienced both the good and the not-so-good aspect of flipping. For him to
make as huge profit as possible, he oversees the renovation process. He makes sure that he does not go over his repair budget. If you watch his show, Flipping Vegas, you surely are aware as to how many times he has conflicts with his wife on renovation issues. Scott’s wife, Amie, who is his co-star in the show, is concerned with the aesthetic aspect of the house, which of course, eats up a huge portion of their budget. Scott, on the other hand, wants to stick with the necessary repair. He does not want any unnecessary repair, be it for aesthetic value or not. Any additional repair entails extra budget, which directly affects his profit.
Flipping houses require money
If you want to succeed in flipping houses, you should have enough money on hand. If you have no money, then you need to find ways to have one. Some investors borrow money just to purchase and fix up homes. However, you have to keep in mind that lending money, especially from lending institutions doesn’t come cheap or easy. There are strict eligibility requirements that should be met. Aside from that, you also have to shoulder the high-interest rate.
Doug Clark — Flip Men
While flipping does require money, it does not necessarily mean that you need to have lots of money in your hand. As a flipper, you need to be creative, resourceful, and smart. Take, for example, Doug Clark of Flip Men. He is a pilot turned reality TV host and successful real estate investor. If you watch his show, you know that he is not the only one. He and his co-host Mike Baird are seasoned flippers. To save money from buying a property to flip, what they do is to they attend an auction, one after another. They went head to head with other bidders. At an auction, you can purchase a property at a low price. So, even if you don’t have that much money, you will surely go home with a property to flip.
Doug Clark is also a hands-on flipper. He and Baird personally oversee and handle the renovation process. They do not hire contractors. They were the ones to salvage the property and turn into something beautiful, safe, and livable. The only addition to their team is the lead foreman. Not having to hire a contractor enables them to save a huge amount of money, which in turn maximize their profit.
Nicole Curtis — Rehab Addict
The same strategy is used by Nicole Curtis. She is the star of the reality TV show, Rehab Addict. She is an interior designer and a real estate investor too. Just like many other flippers, she oversees
the renovation process. She looks and dresses like a lady, but she is flipping hardcore. She has a restoration team, but most of the work are done by her. She salvages wall, removes and replace fixtures, paints the walls, tiles the floors, and a whole lot more. Her personal approach to flipping made her a successful real estate investor. Unlike Scott and Doug, who flip residential houses in the urban areas, Nicole’s expertise is in restoring old houses. Her goal is to bring back old houses to their former glory. She has successfully flipped houses as old as 1904, and she has done it without going over her budget.
Flipping houses do have its pros and cons. If you do it the right way, then you will surely generate a huge profit. If you do it the other way around, then expect your flip to be a flop. Before you start flipping, you should first know the basics. Learn the ins and outs of flipping and start small. Educate yourself about flipping and other real estate investing strategies. Attend seminars, workshops, and live events conducted by seasoned real estate investors for you will surely get a lot of inputs from them.