When you declare to the world that you are a house flipper, you should be prepared for an onslaught of criticism. There are a lot of negative connotations associated with the term â€œhouse flippingâ€ even though you are a credible house flipper.
Banks and the government are not particularly fond of house flippers. This is because house flipping has received so much criticism it has made those who specialize in it face even bigger challenges. So is there anything you can do to maintain your reputation as a credible house flipper?
The Negative Side Of House Flipping
House flipping does indeed warrant a sizable amount of justifiable negative criticism. All industries have at leastÂ a few rotten apples and the real estate investing world industry certainly isnâ€™t exempted. There are plenty of real estate â€œgurusâ€ who have made boatloads of money through questionable methods. Some of them target naÃ¯ve real estate investment students and offer to share their knowledge in exchange for money.
House flippers who particularly give house flipping a bad name are those that purchase distressed property, do not properly rehab it and then sell it to an unsuspecting buyer. Once the buyer realizes that the property is â€œdamaged goodsâ€ they have to put it tens of thousands of dollars to make the house livable.
House Flipper, Rehabber Or Fix And Flip?
Many house flippers prefer to refer to themselves as residential real estate developers, fix and flip specialists, rehabbers and anything else that transitions them away from the house flipping moniker. Honest house flippers have a chance to change everyoneâ€™s perception of house flippers and earn a living out of what they do. This is what house flipping legitimately does:
- It brings back taxes to the community by expanding the tax base and improving the value of homes.
- It creates employment opportunities. Dozens of people get hired to work on a house flipping project such as interior designers, subcontractors, general contractors, electricians, plumbers, etc.
- It generates business for local businesses, supply shops, lumber yards and other businesses that supply housing materials.
- It increases the value of hones in entire neighborhoods. When you improve a rundown home in a neighborhood, the neighbors will be happy because the value of their homes will automatically go up too.
- It improves the lives of the people who eventually live in the homes by creating beautiful habitable homes at affordable prices.
What House Flipping Isnâ€™t About
Legitimate house flipping is not a get-rich-quick scheme designed to scam buyers. Itâ€™s very unfortunate that self proclaimed â€œgurusâ€ out there sell their courses based on this concept. If house flipping was a get-rich-quick scheme, everybody would be doing it. Sure there are a few simple steps that you can follow to simplify the house flipping process but house flipping is anything but simple.
House flipping comes with a lot of benefits. Remember that you can run a legitimate house flipping business and completely change the perception of the public. You can use it to improve the community and making a name for yourself as a credible house flipper.