Flipping Houses for a Profit – Tips and Secrets on How to Flip a House
Flipping houses shows on HGTV show episodes about flipping houses. They make it look so easy, don’t they?
One person when asked the question about “Is flipping houses as easy as they make it appear on TV?” Their answer was “we make it LOOK easy”… BUT, it’s risky, back breaking work. It can be fun, but if you don’t know what you are doing, you can sink fast. These shows make it look so easy. Money can be made but there can be a learning curve.
What Is Flipping Houses?
Flipping houses is when real estate investors will buy a house, some times at an auction, or from individuals needing out fast and resell them to make a profit. This sometimes can take only a couple months and sometimes it can take several months.
Is this something you can make a lot of money doing this? The answer is YES! On the other hand, you can also lose a lot. Some people have lost everything because of making bad decisions about their house flipping deals.
House Flipping Deal Requirements
There are some real bargains in the real estate market. Even though the real estate market is picking up substantially for just a few years ago. There are still deals out there. People are still falling into foreclosure because of not being able to make their house payments. The fact is there are 1 to 2 million foreclosed homes on the market right now. The Wall Street Journal reports that another 7.5 million US home owners are either behind on their payments or are already in the foreclosure process.
Lending institutions are a lot tighter than they used to be. It is nice to have plenty of cash to pay for these deals but there are actually sources not known by many people. These sources known as “private money lenders” will put out the money as an investment and take the risk without you needing to sign your own home as collateral. These are the secrets to being able to flip house without having any of your own money to put down.
So what do you need to get started?
First off, you do need an great credit score. Lenders have been tightening up the requirements for home loans. Especially if it’s a loan where you’re going to be flipping the house. They consider it a high risk. I agree if you don’t know what you’re doing then YES it can be high risk. But if you get the right training and get educated than you can minimize the risk and make a great profit.
They will tell you that you need cash to buy a house to flip. But that’s really not the case when you learn the avenues. There are what’s know as “private money lenders”. They are investors who are looking for real estate deals to invest in. These people are actually all over the place. You just need to know where to look. I bet you even know someone who has money and who would like to put their money into something they could get a 10% to 15% ROI. That’s more than they would make putting it in a bank account.
Another way is to take out a home equity line of credit on your home. Also known as an HELOC. If you have enough equity in your home this is a great option. This is actually what I did for my wife and my first house flip deal.
You should know the real estate market in your area. Do the research of what the homes you are looking are are worth and then you just need to go for it. I know it’s a scary thing to feel like you are taking a big risk. Not every deal out there is going to be a good fit. You need to make a low enough offer that you know you won’t lose. That’s really the key. Buying property at 30% to 50% or even more lower than market value. There are deals out there and real estate investors are finding them all the time. You’ll find them too! You just need to know where to look.
You can get a Free Case Study of how we doubled our money on our first deal by clicking here. I explain how we found the house and how we financed it and what we did to advertise it. I tell about some of the failures we had with it. I really think you will find it useful and I hope you use it to put ACTION into flipping a house.