You have likely seen the late night television infomercials that will have you believe that flipping houses is the fastest way to make money from real estate. While that may be true, there is much more to it.

Yes, it’s a fact, a lot of money that can be earned by buying houses, repairing, updating them and then reselling them for a profit. The way these infomercials proclaim, it doesn’t sound that difficult. You buy a home that is in neglect or disrepair, you make repairs and then you sell it for a reasonable profit. However, what they are not telling you is that there can be a lot of work involved before you even see that money.

The sheer volume of work, the time it can consume, the sleepless nights and days, and the sometimes disgusting chores that must be done in order to get a run down property in sellable conditions is often glossed over on these infomercials.

Most of the education that you need it flipping houses is how to plan your rehab. Poor planning is the number one reason why people will lose money on any investment property. In order to have a successful flip for maximum profit with a minimum investment,  you must carefully create a plan of action and implement that plan as quickly and cost effectively as possible.

You must also take into consideration that there are most likely going to be rain delays, hiccups, and some unforeseen disasters along the way. Proper planning can eliminate some of the disasters that may occur but it will not eliminate every conceivable possibility that will come along. More importantly, proper planning will limit these occurrences as well as their severity to the overall time schedule and budget.

Another important thing, which falls under proper planning, is having a proper inspection done. The importance of this step cannot be stressed enough. Knowing the problems and potential problems that exist in a property can help you create a workable timetable and budget for the property flip.

Having an inspection performed will also make you aware of any potential problems that you may encounter along the way. That TV infomercial probably left this and many other important steps of proper planning.Jumping into real estate flipping without the knowledge and experience of properly planning your rehab leaves many

Jumping into real estate flipping without the knowledge and experience of properly planning leaves many would-be investors or even experienced investors spending way too much money in a money pit rather than a home that has potential to turn into quick profits.

If you are new to real estate investing and /or flipping properties, do your best to make your first flip as simple as possible. Try to make you first house investment a simple cosmetic fix up & flip, and this is something that a good inspector can assist with.

In fact, this should be the case for your first few flips and then you can move on to more substantial flips that involve more work. The reason is simple, while the profits will be somewhat smaller on these cosmetic flips it gives you, as the investor, the opportunity to learn to budget, set timetables, and live within those budgets and timetables.

This is where most investors go astray when taking on projects that are above their means. A house flip is no small endeavor and there is a lot of money to be lost along the way when this particular real estate investment doesn’t pan out. Start small and ignore the dollar signs in your eyes, then work up to more extensive projects.

Another huge mistake that many investors make is not catering to the audience they are hoping to attract in the property being flipped. A bachelor’s pad does not need 3 or 4 bedrooms. At the same time, a family home typically needs at least 3 if not 4 or more bedrooms.

Other things that are overlooked are fenced in yards, landscaping, and maintenance requirements. Low maintenance lawns are in high demand these days, especially low maintenance lawns that appear to be well landscaped.

Keep these things in mind when flipping real estate and you have a much better chance of success. For more real estate investing tips on flipping houses, contact me for a free 30-minute phone call.

Remember, you don’t know what you don’t know about flipping houses. I can help make you more profit flipping houses, which is probably the main reason you got into real estate investing in the first place. What do you have to loose? Give me call and let’s discuss your situation to earn more profits!

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Delinda HarrelsonAbout Delinda Harrelson

Delinda has bought and sold over 150 hundred properties, been involved in hundreds more through consulting, mentoring, and coaching.
It doesn’t matter if you are burnt out, new to the game, a lousy rehabber, seasoned, successful or just plain curious, I encourage you to learn about the wonderful opportunities real estate investing can offer people. I am sure not the sharpest tack in the box, so if I can do it, you can to.

 

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