House flipping is an exciting and potentially very lucrative career path. Whether you’re approaching retirement and looking for a fun new challenge or a budding young entrepreneur hoping to make a mark in the house flipping industry, there are a few things that you need to know in order to succeed in this business. Here is our best house flipping 101 advice:
Don’t expect it to be easy
A lot of people watch house flipping shows on TV and think, “I could do that.” Yes, you can do that, but it’s not nearly as simple as it looks on the home and garden channel. House flipping takes a lot of hard work, time, and research. You need to be prepared to do the leg work of finding an ideal investment property, calculating all of your costs, and accurately assessing your potential revenues. Far too many people think they can take up house flipping as a hobby and still make great money. This simply isn’t the case. In order to succeed in this business, you have to be prepared to learn the industry inside and out.
Expect it to be competitive
Now that the housing market has stabilized and foreclosures are minimal, the rehab market has become much more competitive. It’s not uncommon for an ideal house flipping property to receive dozens of bids from competing house flippers. This is another reason that you need to be truly prepared. By doing your homework and securing your house flipping loans early, you can set yourself apart from the crowd.
Remember to weigh your other options
House flipping isn’t the only way to make great money in the housing market. If you’re looking for a more relaxed but still lucrative investment opportunity, you might want to consider rental real estate investing. By purchasing a property, renting it out for a few years, and then reselling it when the market is ideal, you can make passive monthly income and a great final payday. Remember to look not just at apartment buildings but also single-family homes, which many people — especially young families — are interested in renting.
Never underestimate the importance of a great team
The house flippers who do best are those who have professionals that they know they can rely on working by their side. Your team should include an excellent contractor, an experienced realtor, a savvy accountant, and a reputable private money lender. A lender like ZINC Financial can help you secure residential rehab loans to better leverage your capital and be more competitive in the house flipping market.