Investing in real estate became a national pass-time about a few years ago. Now that we are in a different market, investors must be more wise and disciplined to make their investment yield the results they’re looking for. We’ve sold many spec homes for clients, including a chalet we built and sold ourselves in Glenn Oaks.
Most real estate investment gurus will tell you that “Anybody can do it.” “Anybody can flip houses and earn a hundred thousand dollars in their spare time, buying, fixing, and selling run-down homes.” Well, that’s not exactly true. If it were as easy as these gurus claim it is, everyone would be doing it. Unfortunately, the sheer number of people who have tried to become wealthy real estate investors and have failed proves that not everybody has what it takes to succeed.
The following list describes the most basic qualifications you need to get started:
• Nights (or days if you work the night shift) and weekends off: Flipping houses is like moonlighting at another job. Part-time flippers, often called weekend warriors, can succeed as long as they are committed to treating flipping as another job.
• Energy: Couch potatoes need not apply. You need plenty of energy to work on a home while fulfilling the responsibilities of your day job.
• Organizational expertise: With flipping houses, time is money, so you need to execute the flip as quickly as possible. This requires an organized mind. You have to act as contractor to make sure all materials are delivered on schedule and that your subcontractors aren’t tripping over one another.
• A supportive family: If you’re married, make sure your spouse supports this new venture. Otherwise, you will not only be fighting the world to flip houses for a profit, but you will also be fighting your partner. This often leads to failure both with the new venture and with the relationship.
Although many people who flip houses fly solo, you do not have to take that approach. In fact, you can often flip more homes and do a better job of it by building a team, complete with an agent, home inspector, mortgage broker, attorney, and handyman/contractor. This approach is particularly beneficial for those who are just learning the ropes.
Ralph R. Roberts, GRI, CRS is an experienced real estate investor and consultant and the author of Flipping Houses For Dummies (John Wiley & Sons).
Finding investment homes like the ones you need to turn a profit seems easy to a lot of folks, and finding the right property is often half the battle. If you’re looking for a property like this, be sure to subscribe to our blog – especially to Beat the Street! I’ve only had two houses that were perfect "flippers" in my personal inventory (I also find more other agents have listed), so when I do come across them, they sell fast! Both I sold in 10% of the average market time.
Long story short, if you’re looking to invest in flipping a home or even long term, you need The POLTROCK TEAM on your TEAM. Call us today and begin searching for your property in our listings or search the MLS.