House flipping myths and the truth behind them

December 06, 2018
 
House flipping is not only highly profitable but also an enjoyable endeavor. For one to profit from house flipping, he/she should know and understand its ins and outs. Unfortunately, not all you read and heard about house flipping is true. Most of them are myths and they sound true. If you want to be a successful house flipper, you need to know the truth behind these myths. Some of the common house flipping myths are the following:

Myth #1 - You need to have a lot of money

This is partly true. Money is important in a house flipping project, but it does not necessarily mean you will need a lot of money. Even if you don’t have a sufficient personal money at hand, you can still start doing house flips. There are many resources to secure money such as partnering with other real estate investors. You might also want to take out personal loans, but of course, it is more expensive because you need to pay for the interest.

Myth #2 – You need to be a handyman

House flipping entails a lot of work but it does not mean that you need to be a handyman for your house flipping project to be successful. It is true that you will have an advantage if you are a handyman but even the most experienced house flippers need help from others too. If you want to reduce the cost of renovation, you can have some tasks done on your own. But even so, you will still need the help of contractors and builders. Experienced house flippers have a renovation team that is in charge of the overall renovation project. Having a team of experts enables you to complete the project in just a short period of time.

Myth #3 – You are required to sell the house after flipping

Many house flippers sell the house once the renovation project is complete. However, this is not always the case. What if you couldn’t find a buyer right away? What if the property sits in the market for a long period of time? The best remedy is to have the property rented out. That way, you will have a monthly cash flow. You will not get the return on investment right away, but you will surely generate a continuous cash flow. Just make sure you will find the best tenants.

For you to have a complete understanding of the house flipping business, you should come to real estate seminars. Scott Yancey holds live real estate events and training which will help you learn more about the house flipping business, especially the secret strategies used by successful real estate investors.