As this is one of our bread and butter business. My partner and I have flip over 80+ homes. If you are reading this article you are in luck because we may not be the best people that write about home flipping, but we know darn sure we are among one of the best home flipper out there.

Unlike what you see on tv, Fortunately, Home flipping could be a very automate and drama free business once you get a hang of it. So..nothing to show here. Just keep calm and flip the next home.

The Benefits of Home Flipping:

Velocity of Money

Probably the biggest benefits of home flipping is the You can turn around your capital quicky, or build you your capital quickly. It is a quick nickel rather than a long dime like long term rental. Think of home flipping like a high paying job. It is not investment. Let me make it clear. Home fipping is not an investment.

Support other RE-related business

This is what i call internal production. If you are with a brokerage like eXp Realty, where you get your cap back when you hit icon status. Consider home flipping since you don’t have to work for 50 people. If you are a full time home flipper (2-3 Deals a months) that is 24-36 deals a year for you to hit icon status and get your cap back.

Challenges of Home Flipping:

  1. Financial Risks: Home flipping involves significant upfront costs, including the purchase price, renovation expenses, and holding costs. It take money! Sometime it is actually just way less stressful just to do a traditional deal and collect the commission with no upfront cost and all the stress
  2. Time and Effort: Renovating a property is time-consuming and requires a substantial amount of effort. It is a job in the begining. You can automate it and turn it into a business and scale it. but it will take time.
  3. Tax: Home flipping is tax as traditional income tax. Please check with your cpa on this. But i know for a fact that home flipping does not have any tax advantage. It’s okay to feed uncle Sam sometimes.

Tips for Successful Home Flipping:

  1. Research and Due Diligence: Thoroughly research the property, its location, and the current market conditions before purchasing. Ensure the potential for profit aligns with your investment goals.Run comps run comps run comps. The market will tell you what the home will sell for and how long, not you. luckily in the United States that information can be easily accessible by any licensed real estate agent
  2. Budget Wisely: Always budget for 10% more than what you think it will cost. Take it from a person who flip 80+ home
  3. Focal point: If you have to pick an area to rehab. choose kitchen and bathroom.
  4. Partner with Professionals: It’s a team sport. Make sure you have a good network of wholesaler who is sending you deal, Real Estate agent that is investor friendly (me yay) that can help you hunt for deal on the mls and later on help you list it. a photographer, insuance agent, private money lender. It take a village to flip a home.
Free Drawing Plan photo and picture

In Conclusion

Home flipping is a job. A high paying job. But with fast velocity of money, you can build up capital quickly. Don’t over think it. just buy a cheap home, below average price point in your market to start renovating. See the training below