Have you ever watched any of the "Fix and Flip" programs that crowd the airwaves? I sure have.
Me and my wife have done a few renovations in our times. She has an eye for decorating and knows repairs so we sit and watch the shows, compare ideas, make suggestions, etc.
I am more on the financial side. I love to see what they brought the houses for, how much they renovated them for and what was the final sales price. Surprisingly most of the time the rehabber earns money on these shows.
Kind of makes one think that this is the way to go. I believe in the concept, have done it and made money from it. I want to share with you some things to consider as you may look to get into the world of "Fix and Flip."
1) Remember, these are TV shows. Some of the drama you see (like Flipping Vegas flipping out over a $300 repair and driving off in a Lamborghini) and partners getting made at each other during the flip and kissing and making up at the end (Flipping Boston) is some acting for the sake of TV. In reality fixing up houses can be pretty boring. So TV has to make it seem like a lot is going on.
2) Don't buy into the lie "you don't need money, credit or experience to make a fortune flipping houses." Real Estate is a specialized skill. In order to sell it you need a license. Not just anyone can do real estate successfully. There are a lot of components to a deal. A fix and flip is one of the most complicated real estate deals you can do. In order to become good at this
you will need some specialized skills. Otherwise the real estate sharks will eat you for dinner.
3) Notice that most of these shows do not use conventional forms of financing (like a bank or credit union). The buzz word is "private money". Yet if you do a little Google research you will find that most of the flippers on TV have sources of financing the average person will not be able to tap into.
Make no mistake; if you cannot secure financing, you will not be buying any real estate. Whether it is from a bank, seller financing or private financing you will need money to become a successful real estate investor.
If you are truly serious about Fixing and Flipping, begin with a good book on the subject. Educate yourself before investing so much money into what could be a losing proposition.
Just a thought!