The reality of flipping homes

September 19, 2006 in Foreclosure Flip Tips by Foreclosure.com12 comments

There are several new real estate programs on television these days that depict newbie investors purchasing dilapidated homes, making repairs and selling them for staggering profits all in 30 minutes.

Put simply, it’s not easy or as fast as it looks.

Because of the editing process, these shows rarely convey all the hard work, knowledge and dedication it truly takes to pull off such a feat.

Instead, these shows often make flipping houses appear to be clean and simple. Here is a general example of a “get rich quick”

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October 30, 2006 at 10:50 pm

Jim

I know of somebody in my family who does this for a living and he is only 23 years old. He has not had a job working for an employer since he was 18. Soon after that he discovered that all he needed was his good credit and a few friends to help out. Now he makes more money than I do working for (the man) 40 or more hours a week.

March 5, 2007 at 2:15 pm

Jimmy C

Jim, my cousin’s finace flips one or two homes a year in his spare time and he does ok financially. I guess it’s a matter of location. He tries to do his in neighborhoods that command a high dollar.

March 22, 2007 at 10:56 pm

Sherry

I’m just interested in knowing if working for a privately owned incorportated company is legal? As far as, showing houses without a real-estate license.

March 22, 2007 at 10:59 pm

Sherry

Correction, Showing houses without a license for an incorporated company, privately owned. Is this legal?

March 26, 2007 at 10:51 pm

Great question, Sherry… I know a few that do that myself…

April 10, 2007 at 10:32 pm

Travis

I’m 19, great credit, and I grew up in construction my whole life. I have the background and support but not the money to break into “flipping.” What’s a realistic next step?

May 12, 2007 at 6:05 pm

Patrick Teuscher

Travis,

I would focus on fixer-uppers since you have a construction background. Plus, in my opionion, they represent the least risk in terms of flipping homes. Talk to a local lender and ask specifics about financing, then read up and find a good deal. MLS is a pretty good resource for rehab projects, but for better margins you might try hunting a little more i.e. foreclosure.com.

Shameless plug: I’d encourage you to join our community (we just launched this past week:)

Cheers,
Patrick
Flipping Pad

February 1, 2008 at 12:01 am

Tad

I go by the 10-10-10 rule which means purchase at .70 cents on the dallor, expect to pay .10 for admin. cost .10 for repairs and up grades and .10 profit.

May 25, 2008 at 4:03 pm

Home Contractor

Nice article

March 13, 2009 at 12:43 pm

Marya

Even with in the rough real estate market, there is still money to be made in flipping. I work with contractors and independents on a daily basis to help them make it happen! it is important to remember that a great reputation as a “flipper” can lead to constant referral sales, so consistency in your projects is key.

July 17, 2009 at 1:17 pm

Sean Flanagan