House Flipping Is NOT For Amateurs

Dated: 09/12/2016

Views: 311

House-flippers are becoming media superstars. The number of seminars and television shows devoted to flipping for big money has convinced many to take the plunge. It's so easy to watch tv guru or attend a "free" seminar, purchase training materials for hundreds or even thousands of dollars, then talk yourself into buying that first "fixer upper" with your life savings only to realize later that it's just not that easy.  What these programs don't usually show people are the failed flips. That doesn't sell well or show well on tv. This is not a game to play if you are not a risk taker. A lot of people suffered enormous losses in the 2008 housing crisis when equity in most real estate markets drained away before they could unload their flips. I helped several flippers sell their projects at a loss then and it wasn't pretty. Many investors were forced into bankruptcy in the years that followed. They just couldn't get out soon enough and lost everything. Many were Realtors lured by big profits who didn't think the market would ever slow down. Could this happen again? You can count on it.

Make no mistake, there is good money to made in flipping, buy-and-hold (rent) and other strategies. Some are riskier than others. If you want to get in the game I recommend finding a good Realtor who is an investment specialist and knows how to find and analyze an investment opportunity. This should include an exit strategy when it's time to sell that may include a 1031 tax deferred exchange. It's very different than buying a house to live in. Your "team" should also include an accountant familiar with this type of investing and contractors who will get things done on time and on budget 

I've worked with many investors to find the right opportunity, one that fits the investor's life style and risk profile.

Don't go it alone! Get educated. Ask a lot of questions. Create a plan and stick to it.

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Hal Mayer

My first question is always “How can I help?” because help is what home buyers and homeowners want. I don’t have a canned pitch because every prospective customer is unique. My approach is Co....

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