Reality shows often make it look simple, and infomercials make it sound like a dream come true. But is making a living with home flipping really that easy? Entrepreneurs need to learn a few real estate realities before diving into the home-selling pond.
The Reality of Financing a Home
Before thinking of great renovation ideas and pricing the cost of granite slabs, consider the real estate reality of financing that huge purchase. There’s going to be a mortgage to think about (which, incidentally, is more difficult for the self employed), house payments to make, and then there’s the huge expense of actually flipping the property. Where are the dollars coming from? Figure up a time line for flipping and get a price for absolutely everything before beginning…then add several thousand dollars’ worth of cushioning. Something expensive will come up – it always does. Now, it’s time to deal with the real estate reality of financing. Know where the money’s coming from before signing on the dotted line, or starting in with any work on the property.
The Reality of Flipping a Home
Home flipping looks great when it’s reduced to an hour’s worth of entertainment value on TV, but in reality flipping any property is a long, time-consuming, back-breaking task. Time lines and budgets go haywire, contractors don’t always come through, and the housing market is, at best, unstable and unpredictable. Always keep an eye on the market to be sure not to over-spend on a property, because the reality of flipping is that it’s only worth the time and effort when a big return is the result.
The Reality of Selling a Home
Real estate can be a real pain, but it can be really profitable, too. Boost real estate with attractive curb appeal (landscaping and gardening that’s visible from the street), the all-important home staging (proved to improve sales), and choosing the right list price for the neighborhood. Stay on top of the market by comparing properties in the area, finding out which homes are selling and which are not, and competitively pitting property against the others. Here’s a real estate reality: if a home isn’t selling, the investment isn’t working.
Home Flipping
Is it possible to make a living with home flipping? Others have succeeded, but only because they have accepted the cold, harsh realities of real estate. Learn the game, and learn how to make it work for self employment.
