Find out the difference between flipping houses and the “buy and hold” in this Real Estate Investing Guide.
In the world of real estate there are several different ways to make money from buying properties. As a newcomer in the business, deciding which path is right for you might be your first and foremost concern. You might ask yourself…
The answer to this question is quite subjective, actually. There is no route in the real estate business that won’t make you money if done correctly. As long as you are a hard worker and have the right motivation, you should be able to succeed.
Before you choose, you should know the differences between the different avenues of real estate. In this real estate investing guide article, we will discuss two of the most common strategies: flipping houses, and the “buy and hold”. Along the you will find a brief overview, and then sections comparing the speed, risk, and reward of the two strategies.
An important resource that every house flipper should know how to utilize is the lease option.
As a house flipper, you will need to improvise and adapt to the environment around you. Don’t be afraid to try new strategies and to change your game plan so that will profit.
When you flip a house, after you buy and rehab a property, you should always try to sell it to a buyer. However, life does not always play out ideally. Sometimes you might not be able to sell a property as quickly or at the price you had originally hoped.
If something like this happens, this does not mean that you should simply cut your losses and sell at a price that won’t earn you any money. Instead, you should find someone who is willing to agree to a lease option.
To really blossom in the house flipping game, you need to know the different avenues that are at your disposal.
Flipping houses is an incredibly popular field in the real estate community. With the right ambition and knowledge, the average person can be very successful in the house flipping game. However, if you fail to educate yourself on the different approaches to this business, you might not really thrive.
But isn’t house flipping a pretty cut-and-dry business with essentially one approach?
The answer is no. House flipping is a living ecosystem of many different people and pieces, all moving together to make a sale happen. What you need to do is diversify your mindset and find your particular place, or places, in this field.
What many beginners do not realize is that there are many different ways make money in this exciting business. Some strategies don’t involve renovating or even buying at all! Below are some of the different approaches to the house flipping game.
To Learn How To Flip Properties, you must first learn the Do’s and Don’ts of the business
In the last half decade, a great number of people have started to join the dynamic field of house flipping. House flipping has the potential be an incredibly profitable industry for new investors with a lot of ambition.
However, many new investors jump into a house flipping project without realizing the full gravity of the situation. They often make rookie mistakes that they’ll regret later. As a beginner, you should try to avoid these mistakes by researching and learning as much as you can about how to flip properties.
If you want to learn how to flip properties, it would be smart to see what problems other just like you have run into. In the following section, we pair a common mistake (don’t) with its alternative solution (do):
Holding onto a property for a long time can cost you money, so you should make sure you know How To Sell Fast.
Many people follow the old idiom, “Slow and steady wins the race” in their daily lives. While taking time to methodically contemplate and realize every detail of what you’re doing can be a useful technique in some cases, when flipping houses, quickness is often a more rewarding virtue than patience. If you understand How To Sell Fast, you can minimize your expenses and increase your profit when you flip a house.
However, before knowing How To Sell Fast, you should consider the important reasons why. Understanding the process will help you figure out when specifically is a good time to sell.
Sometimes in the house flipping business things don't always work out as planned. Just today I missed out on a deal that could have potentially been worth $300,000. To say I was bummed would have been a big understatement.
The property was a single family home in Fairhaven, Massachusetts. It was a decent size colonial style house, right around 1600 square feet. After renovation I estimated the after repair value to have been right around $300,000.
Ever wanted to know how to fix and flip houses - but know more than just the "block and tackle" stuff only? Read on...
Just read any of the hundreds of posts on this blog here and you should get a pretty good idea as to how to fix and flip houses successfully.
But what many house flipping coaches don’t tell you is how important the “success mindset" is before you learn any of the block and tackle stuff. Truth be told, how you think is even more important than any tactic or technique you may learn for flipping houses.
Because without the "mindset" to succeed, all the other stuff really won't matter all that much.
I’ve certainly read my fair share of self-improvement books from the likes of Stephen Covey, Dale Carnegie, Napoleon Hill and Rhonda Byrne – all great resources for you to Continue reading
The best way to flip a house and avoid losing money, is to identify a potential bad house flip deal before it happens. Here are 7 early warning signs that the deal on the table is one to walk away from.
I call this type of scenario a DEAR - also known as Drop Everything and Run! Honestly, trying to gauge the after repair value of a home solely through using online tools and websites is a sure fire way to set yourself up for disaster.
Now don't get me wrong, sites such as Movoto and Zillow are fantastic places to start your research - but not the right place to end it. To really get a good grasp on how much a house will be worth after it has been renovated, you need to meet and speak with a local expert real estate agent. At the end of the day, a real estate agent who really knows your area will be your best bet at determining an accurate ARV.
If you want to make money flipping houses, then you must be comfortable promoting yourself. At the very least, when someone asks what you do, you should be proud to tell them that you are a house flipper.
Well 8 months ago when I began House Flipping School, I will readily admit that I was not 100% confident in promoting myself as a house flipper. Making money flipping houses is near and dear to my heart, but I was not sure I wanted to promote myself online as a house flipper because of the negative connotation house flipping has received recently in the media.
We all know that banks and the government are not particularly fond of house flippers. Perhaps people in your own personal network are turned off by the term. Unfortunately house flipping has received criticism because some individuals and companies go about it in the wrong fashion.
In certain cases, I believe house flipping does warrant some negative criticism. As with any industry there are always a few bad applies that spoil the pie (is that a real saying or did I just make that up? LOL). In the real estate industry we certainly have our fair share of "scams, scoundrels and scandals" as the hit TV show American Greed would put it.
In response some house flippers have transitioned to referring to themselves as rehabbers and residential re-developers. I think their strategy is to avoid the house flipping phrase all together. When I first met with my future House Flipping School marketing team during the spring of 2012, I was seriously thinking about traveling down this path myself.
Of course by now it's pretty apparent that I decided to stick with calling myself a house flipper. Here's why:
As a real estate investing beginner, you want to quickly learn the tricks of the trade and see a return on every investment that you make.
I recently took the time and read Walter Isaacson’s book, “Steve Jobs”. Despite his incredible success, I came to learn in his book, that Steve Jobs was a distinctive and deeply flawed human being just like many of us. He made several mistakes including alienating his own daughter. But sometimes we all prefer to think of our heroes as just that, heroes; we hardly ever want to probe further into their personal lives because there’s a high chance that we would find something we don’t like and they would stop being our heroes.
That aside, I realized that after reading the book I also came away from it having learned anyone can be great including any beginner thinking of venturing into real estate. So here are 7 lessons that Steve Jobs can teach a real estate investing beginner.