We’ve all seen the home remodeling TV shows. A friendly couple (or a couple of brothers) purchase a pitiful home, renovate it into something incredible and sells it for a profit, all within a couple of months.
Let’s be real. It’s not that simple. People make a profit flipping houses each day, but the key to success begins with truly understand what you’re doing. And discovering a good home to flip is much more difficult now because the market is so strong for affordable-priced houses.
Real estate experts state it’s hard finding a home to flip that makes dollar sense. You’re in competition with retail buyers. They’re purchasing the unattractive homes because there’s nothing else.
The company ProfitShare utilizes door hangers, personal connections, direct mail, social media, and real estate agents to find houses to flip in Boise, Idaho. To make its offer more appealing to sellers, ProfitShare pledges some additional money once the flip has sold.
When ProfitShare’s offer is rejected in favor of a higher offer, the company puts in a backup offer just in case the first deal doesn’t go through. They state that they’ve had several houses that they’ve ended up on second position on.
Don’t believe the infomercials that say you can go into flipping houses without any money.
Nobody is going to just hand you a home for free. You can’t go into Lowe’s and get tools and materials for free. If you plan on using credit cards only, you can find yourself quickly in trouble.
Another huge key to victory as a flipper is rightly estimating both timeline and cost. That doesn’t indicate that there won’t be the unexpected, but you want to gage the real price of getting the property ready for sale which includes repair costs, marketing costs, utility payments, insurance, and mortgage.