TWELVE IMPORTANT REASONS WHY YOU SHOULD CONSIDERS GOING INTO HOME FLIPPING BUSINESS.
I’m writing these to would be house flippers because I am convinced and resolved that flipping houses is one of the best real estate investing strategies available. Consider the 12 reasons why we flip over the flip.
FLIPPING BUSINESS SIMPLY PUT IS THE ACT OF SEARCHING, ANALYSING, BUYING, FIXING AND SELLING HOUSES WITHIN A SHORT PERIOD OF TIME.
Flipping business is one of the most advantageous and massive income generating business of the decade. Anyone that can delve into it without minding the little efforts it takes will of a surety get a second income idea and probably if done very well become an overnight offline and online Millionaires.
This beautiful story credited to KIRSTEN KEMP in her book titled “Flipping Confidential; the secrets of renovating properties for profit in any market” is a complete and concise summary of everything you need to know about property flipping business.
Have a good read:
I have some good news for you. There’s an art and a science to flipping houses, and it doesn’t take an engineering degree and a bottomless trust fund to do it. Several years ago, I had a real estate client, Lety, who purchased her first condo in Santa Barbara for $200,000, 110 percent of which was borrowed. Because she had no money whatsoever, she even had to borrow the cash to cover her closing costs. Lety was a single mom who desperately wanted to provide security for her young son. Although she didn’t have a penny to her name, she was employed full-time as a hairdresser and had a loyal, steady clientele. She possessed an inspirational resolve and an innate understanding that the key to financial independence was to invest in real estate even though, technically, she had nothing to invest.
Because Lety’s funds to get into her home didn’t come out of pocket, her mortgage payment was steep. Lety made many sacrifices to keep that condo, but she never complained because she had her eye on the prize: building equity and, hence, financial stability for her future, for her son. While she was living there, Lety made some minor cosmetic changes to her condo—replaced linoleum with tile, painted, and changed out some light fixtures and hardware. Two years later, she sold it for $298,000, a healthy profit in any market. She dropped $325,000 on her next condo, made similar improvements (and sacrifices to keep it), and sold it 18 months later for $435,000. With the equity she had acquired, Lety partnered with her sister and bought a house for $950,000, completely overhauled it, and sold it 16 months later for $1,175,000. They split their profits, and Lety purchased a single-family residence in need of her now well-honed special touch. There was a nice yard for her and her son, and she is now enjoying the comforts of well-deserved stability.
Think about this scenario. Here’s a single mom with no money and limited skills. Lety struggled to get into a $200,000 condo, and just five years later, she was dabbling in million-dollar deals. Did she set out to become a “flipper?” Probably not. Was it easy? No. Scary at times? No doubt. Worth the sacrifice? Absolutely.
Lety didn’t have experience or cash, but she did have what it takes to be a successful flipper: a principled conscience, an iron gut, a keen sense of organization, a passion for the process, a healthy dose of reality, and a finely honed sense of humor. That last bit is key. Take it from me, someone who’s lost (and made) more money in 12 years than some people see in a lifetime because there is no better backdrop for raucous laughter than a construction site under a self-imposed time crunch. Of course, how long and how heartily you chuckle (and how quickly you recover) will depend on your mind-set, attitude, and perspective all of which we’ll be sure to get in the right place before you begin your flipping journey. Source: Flipping Confidential; the secrets of renovating properties for profit in any market.
Considering the above story, the following are the 12 reasons why you should also considers venturing into Flipping business.
1. Flipping generates cash. Buying, fixing, and selling houses is a quick way to earn money. Done once, a flip creates cash. Done alot, it creates cash flow. Both put money in your bank account.
2. Flipping is a short-term venture. Flipping a house, when done properly, often is accomplished within a few months. This means that if you try it and like it, you can do it again and again. If you decide it’s not for you, you’re not tied to a long-term commitment. Additionally, you get immediate feedback on your performance, allowing you to learn quickly and build on your growing expertise.
3. Flipping works in any market. Why? Because it’s about following a process, and that process isn’t tied to any specific market or any particular time period. Your success in buying, fixing, and reselling houses comes primarily from finding value (buying a house below retail market value) and creating value (making improvements that increase the selling price beyond their cost).
Finding and creating value always works whether your market is cold, lukewarm, or just plain hot.
4. Flipping can be done part-time. We know many successful investors who earn tens of thousands of dollars by flipping parttime, and we recommend that everyone start out that way. Then, as you build success and confidence, you’ll always have the option of staying part-time or going full-time. Flipping works either way.
5. Flipping doesn’t require a lot of your own money. In investing, when you find the right opportunity, the money will find you, and
that’s never been more true than in real estate investing. Lenders know that good real estate deals make good loan opportunities; that is why there are many institutional and private lenders willing to back rehab investors, even first-timers. If you bring them the right deal, they will finance it.
6. Flipping is available to anyone. It is an equal opportunity investment choice. Flipping doesn’t care who you are, how much you make, where you live, or what you do. If you can find a house worth flipping, you can finance it and thus the opportunity is available to you.
7. Flipping is a potentially lucrative business: mostly for full time flippers or a side income for part time flippers. It is very easy to earn in 6 figures or more with Flipping properties. In short, you have financial freedom.
8. With Flipping, you are your own boss. You make personal decisions on what and what not to do. You make decisions about the time and resources you want to commit to the business.
9. No need of any equipment or inventory. All you need is your knowledge and your cash. You can easily employ the services of brokers and various experts around you.
10. You tend to create employment opportunities and also bring about improvements to the neighborhood.
11.You need no license or degree before you can get into this business. All you need i say again is your technical know how.
12. Self improvement: you tends to know more about, real estate business, construction, learning a business, and courage.
What else can say about the importance of going into Flipping business nothing much for now.
BUT THEN, IF YOU CARE TO KNOW MORE ABOUT FLIPPING BUSINESS I RECOMMEND THIS BOOK.
KIRSTEN KEMP: “Flipping Confidential; the secrets of renovating properties for profit in any market”
YOU CAN ALSO GRAB MY LITTLE FLIPPING GUIDE “The Ultimate Flipping Guide: Make Money Buying and Selling houses” FOR FREE HERE.
OR FOLLOW THIS LINK TO READ THE CONCISE SUMMARY OF EVERYTHING YOU NEED TO KNOW ABOUT FLIPPING BUSINESS.