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According to reports, 95% of first time flippers fail – a frightening statistic that could leave many in financial ruin.The numbers may be grim, but some home investors are turning profits. Experts suggest that their success could be in how they approach the process, putting knowledge and expertise to work.
As self-styled gurus offer advice on how to make money flipping properties, experts are cautioning that it’s more important to mind the dollars and cents than it is to focus on so-called flipping strategies. That means learning how to buy low and add value by renovating depreciated properties.
Before even thinking about flipping houses, aspiring investors must learn the skills they’ll need to make necessary home improvements. At the very least, they should identify who will do the work for them at a reasonable cost. This will allow the investor to buy distressed properties, fix them up, and put them back on the market.
According to seasoned investor Justin Pierce, “Most people are shocked when they hear how much a home remodel project will cost.”
Aspiring flippers that can’t do the work can find themselves behind on their investment before they’ve even started their remodel. Similarly, contractors that are affordable may not meet expectations or could prove unreliable, costing the investor more money.
"They can come in, promise you the moon and then not show up. They can come in, start doing some work and then leave for two- to three weeks," says experienced investor Chris Moore.
Many flippers neglect the fact that flipping homes is also about making investments. This could be a costly mistake. Flipping is more about the financial transaction than the house itself. To make money, the investor must buy low and use as little money as possible to refurbish the home. New investors could get stuck in the trap of creating a “vision” for the house, but that could eliminate any potential profit from the flip.
Although some flipping “gurus” try to teach people how to sell a home, it’s more important to learn how to locate and purchase distressed properties that are primed for flipping. Finding homes often means marketing, which tells owners of distressed properties that the investor is there to offer an easy way out of a troubled property.
With the right property and the skills to bring it back up to market value, the investor can make a profit. But what happens to those who choose the wrong property or don’t have the right skills to make the upgrades? They find themselves in the 95% of investors who fail.
For more information about flipping houses, contact us at (832) 663-7099 or visit http://www.superiorhomeinvestors.com/ for more information.
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Name: Superior Home Investors
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Organization: Superior Home Investors
Website: http://superiorhomeinvestors.com
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