Becoming a reliable house flipper is all about being honest and distinguishing yourself from unscrupulous people in the business.
Many people have a negative attitude towards fix and flip specialists. The negativity comes from different sources including clients, banks and even government. I had some reservations when I was starting my house flipping website. I handle other aspects of real estate as well but I did not want to present myself as a fix and flip professional. This is because of the bad rapport that is normally associated with this business.
The Downside Of House Flipping
To be completely honest, there are a number of reasons why house flipping has received so much criticism. One of those reasons is the large group of unscrupulous people in this business. These are people who look to make great profits through dishonest methods and by scamming investors. They buy property in bad state and do nothing in terms of repairs. Therefore, they do not improve the value of the property. They then flip it to an unsuspecting buyer.
On the other hand, some house flippers buy distressed property and do repairs only on the surface. They make it look nice on the outside while there are still many repairs that need to be done. When an interested buyer comes along, they do not tell them all the problems the house has. Later on, the buyer has to spend a lot of money in order to make the house habitable. Such experiences have made most buyers cautious about house flippers. Unfortunately, the numbers of such scammers are quite high.
Naming Your Business
When I decided to name my website House Flipping School, I fully understood the risks this posed. On the contrary, many house flippers have decided to drop the flipping name altogether and use other monikers. These new names include fix and flip specialists, rehabbers and residential estate developers. Therefore, I felt like I was going in the wrong direction because I was not doing the same thing as the others.
I felt as if I was grouping myself with the rest of the scamming flippers. The reason I decided to stick with the house flipping phrase is because it is easy to type in the URL. Hence, getting visibility and hits on the website would not be a problem. Secondly, it is the core of the business and thus should reflect in the name. After nine months it became clear that this is a great chance for re-branding. This was not only for my business but everyone else running a legitimate house flipping business.
This is because when you add the term house flipping to anything, you immediately get some interest. Whenever you include the keyword house flipping in a tweet or a post online, more people will want to know more. This is as opposed to just using the phrase "real estate investing". I realized that this extra attention was working to our benefit since we get more attention.
Job Description of Genuine Fix and Flip Specialist
Apart from the negative aspects, there are a number of pros of being a reliable house flipper. However, we need to go about it the right way if we want to change the general opinion. As an honest flipper, you not only make money but you also develop neighborhoods and make them better. Therefore, as a professional it makes you feel good about changing societies positively while still progressing in your career.
Genuine house flippers improve the values of homes while bringing back taxes to the community. As a fix and flip specialist, you help others earn income. During the fixing process, you provide work to plumbers, contractors and subcontractors, electricians, interior designers among many others. In addition, you also provide business for local suppliers. Consequently, you do not just make money for yourself but for others as well.
As a legitimate house flipper, you allow people to own homes at affordable prices. You also improve the livelihoods of those who are living in these homes. In the end, we help raise the home value of the neighborhood. This is because when a house is run down, even the neighbors around are not happy living next to it. By improving it, you make it better for those living in the area even if they are not directly occupying the house.
There was a study done by BiggerPockets on effect of real estate investing on the economy of the United States. It showed that house flipping as part of real estate plays a significant role in improving the economy.
Is House Flipping Legitimate?
There is a general misconception that house flipping is a get rich quick scam. Unfortunately, there is a big number of programs sold based on this theme. The truth is that this business is not a get rich quick scheme and involves a lot of hard work.
There are certain steps which are anything but simple that you have to follow when you are flipping houses. In order to become successful in the trade, you need to learn the basic steps first. Afterwards, you will learn more from experience.
Always keep in mind all the above and the pros of flipping houses. If you want to become a flip and fix professional, you can do it through genuine and honest ways. This will not only help you and your family but also the community you are working in.
If you have come this far, please leave a comment below. I'd love to know what you think of these tips.