To Flip or Not to Flip? If Not Now, When? | Think Realty | A Real Estate of Mind
Insight Investing Strategies

To Flip or Not to Flip? If Not Now, When?

If you are considering investing in real estate, you’ve likely done a little digging on the internet to determine if now is a good time to buy. Looking at those online articles from time to time, I’ve noticed that the answer is always “Yes”—and always “No.” The people who say “Yes” tout the idea that the real estate market always rises. The people who say “No” suggest that real estate moves in cycles and that the real estate “boom” is over, leaving the market in a correction that is likely to last for some time.

So, which is it?

 

Real Estate Investing: Yes or No?

 

While it is true that real estate moves in cycles, it is also true that real estate rarely loses value. So, even during the worst of the real estate crash, smart real estate investors were able to find great deals and make a profit.

 

Though some advisers are still suggesting that real estate is “down,” actual numbers show that real estate investments are rising. In fact, the average profit from flipping a house is now $62,000 nationally, with some cities reporting flipping averages over $100,000. With averages like this, the answer appears to be a resounding “YES!”

 

What Does This Mean for You?

 

The average time it takes to flip a home is four to six months. What would it be like if you could flip one home every six months at a profit of $62,000? How would an extra $100,000+ a year look as a financial investment? How much better would it look if you learned you didn’t need much of your own money to get started? And finally, what would you think if you learned that you don’t have to complete one flip before starting another, increasing your yearly profits even further?

 

Rather than put your money into a risky stock market or something safe like CDs that are carrying a low interest, you can invest in real estate flipping and produce large profits. If you are an investor who wants to increase margins, maximize profits and minimize risks, then house flipping is an investment vehicle you should consider.

 

Getting Started

 

There are many ways to get started flipping. Let’s look at three:

 

  1. You can just get started. Some people jump in feet first, buy a property, and begin renovations, figuring they’ll learn as they go. The problem with this method is that your learning process will often cost you a lot of money as you lose potential. Easily made mistakes that turn a good deal into a losing deal plague new investors who don’t have enough knowledge or experience.

 

  1. You can read an investment book. This is a great way to start to understand real estate investing. You can get some great tips from those who have been there and done that. Once you’ve read a book, you can then buy your first property and see how it goes. The problem with this method is that although you will have a good beginner’s understanding, a book can only go so far. You are still likely to encounter things the book never mentioned and find yourself knee-deep in problems that cost you profits.

 

  1. You can get one-on-one training. This is the best method for learning how to flip homes because hands-on learning gets you involved in the process with someone who knows what he or she is doing. If you have the chance to learn about home flipping in this manner, you are much more likely to see good returns on your investment.

 

Find One-On-One Training

 

Since the best way to learn to flip home is with someone by your side, looking for a mentor would be a good way to get started. A good mentor can assess your strengths and weaknesses, and use that knowledge to help you acquire flipping skills such as:

 

  1. Knowing where to buy
  2. Developing a strong network
  3. Knowing how to find and negotiate a good deal
  4. Knowing what a good deal structure looks like
  5. Finding funding
  6. Understanding the scope of work for rehab and associated costs
  7. Knowing the flow of a rehab
  8. Successfully selling the property when the rehab is finished

 

Don’t let naysayers turn you away from real estate. With flipping averages over $60,000, now is a great time to begin.

 

About the Author

John Trautman is an author, entrepreneur, longtime real estate investor and founder and CEO of the Real Estate Knowledge Institute. Through REKI he teaches and inspires aspiring real estate investors who have an interest in everything from home flipping to buying and selling rental properties to earning passive income through various real estate investments. Contact him at john@realestateki.com or 206-255-2858.