You’ve decided to flip houses. You’re jazzed about the possibilities and ready to jump in with both feet and buy that first investment property.
Great. Now, remember this: The next decision you make will most likely determine your future success in house flipping.
So, cowboy (or, cowgal), take a breath, slowly put the checkbook back in your pocket, and think about this for a while. It’s great that you’re excited about flipping. However, don’t let your enthusiasm for buying a house lead to bad decisions. If your first flip project is a bad one, it will be your last.
What’s our deal?
The goal of this website is to provide you with information from people who actually flip houses and who actually make money doing it. We are not selling you anything, so you do not have to worry about wandering down a rabbit hole that will end up costing you money. Our mission is to provide unbiased, real world, tangible information with no hidden agendas to help you make the right decisions about house flipping.
Taking the plunge to fast
I know a man who couldn’t wait to get started flipping. He bought the first house he saw without doing the math. He overpaid for the house and then proceeded to renovate it far beyond the value of the neighborhood. After spending more than $100,000 on renovations – cherry cabinets, granite countertops, expensive appliances, refinished basement – he was rewarded by having to take a check for $30,000 to the closing.
Here’s a big surprise. He’s now out of the house flipping business.
Reality television shows make flipping houses look easy. Trust me, it’s not reality. It is much more complicated, more expensive and more time consuming than it appears on an hour television show.
Factors to consider
There are many factors to consider when buying a house to flip – the cost of the property, the cost of the rehab, location and selling potential, for starters. Throughout the website, we’re going to break down these factors to help you make the right choice.
We have looked at hundreds of homes over the years, and on very few occasions do we turn up our collective noses and dismiss it on the first visit. We look at the potential of every house with this question at the forefront of our decisions:
How can we turn this pig into a nice house and make some money?
Then, we ask: What does it need? What is the upside potential? How difficult will it be to sell?
Are there homes we buy on the spot? You bet, but those are rare. We usually take a day to let it settle before making a final decision.
If you don’t get the house you want, another one will always come along. You’re not going to get every house you want.
Watch your step. Invest wisely. You’re going to learn as you go. Learn as you go. And, avoid costly mistakes out of the gate.