Can You Be Successful Flipping Houses?

[flip_it_fast]

A lot of people ask if you can be successful flipping houses these days? I believe that you can. People still do it all the time and they do make money. It is a lot of hard work though and you have to know what you are doing.

Before you commit to any property an appraisal is a must. Without an appraisal you don't know whether you are paying too much or not. The appraiser can also give you an idea of what the home's value will be after your renovations are complete.

You have to be bold when flipping houses. You have to be able to make quick decisions and be in control of those who are doing construction for you.

You need to have an attitude that says you can you do it. House flipping isn't for the timid.

Stay focused and in touch with what is going on. Never leave it to others to make sure things are getting done. Don't forget it is your money on the line.

[realestatehound]

Dear Flip It Fast:
I'm a real estate broker and auctioneer and a house flipper. I am looking for other flippers to share ideas with on our flips. You are correct in the fact that you can be successfull in this market. I do most of the work on my flips myself and the main reason is that I can't find anyone to do the work to my standards. For the past few years flipping has made up about 70% of my income and I plan to do even more this year. I hope that we can share ideas and become friends. Good luck and thanks.

[homealone]

Realestatehound, I am curious about the statement that you made regarding contractors doing the work to your standards. What is it you mean by that?

Are there many contractors in your area which don't follow the building codes and what not for the areas there or do you just expect things to be done above and beyond what is really needed?

House flipping is a risky business because so many different things can go wrong and that is where most new flippers go wrong. They aren't prepared and things spiral out of control.

I have never personally flipped a house, but a friend of mine does it and she is good at it, though she has been getting places lately and turning them into rentals rather than flips.

[badmomma]

Most contractors do follow code but they still have to please the people who hired them. If I want a contractor to add something and he doesn't for whatever reason I am going to be angry.

I have paid people to do a job and all outward appearances say that they completed the job. Later however I have come to find out that they did not finish they just covered it up.

[flip_it_fast]

Hey Realestatehound, Glad to meet ya! You want some ideas? This site is full of them. You are gonna love it here. I know that I do!

How long have you been into the real estate market in any capacity? I know that you said you have been flipping as your main source of income for the past few years and that just goes to prove my point that you can be quite a success doing this type of work. You had success right through the worst part of the housing market decline and economic recession. Way to go!

I think the key word in that entire paragraph is WORK. I think too many people think that it's an easy street way to make money and it is not. You certainly know that with doing most of the work yourself!

It takes a lot of know-how, patience and you do need to have some money to start with. It never hurts to also have a network of people to lend a hand as well. People such as in the real estate field, contractors, financial advisors and so on. The more the merrier to aid the project.

I see you are in the auction business. Do you get many of your flips from auctions? There are some really great deals in auctions.

I applaud you for all that you are involved with. I cannot imagine how very busy you must be all of the time! House flipping by itself is very time consuming!

Browse around this site, you will be amazed at what all you will find and also please feel free to post about your experiences and ideas of your own! I love to hear about past flips, whether good or bad. We can all learn something!

[realestatehound]

I have been in the real estate and auction profession for almost 35 years. When I said I do most of the work myself, because I can't get anyone to do the work to my standard, I ment just that. If you are going to flip houses you must know the homes you are competeing against and you must make your home just a little bit better and price it just a little lower than the others. If you are flipping a home and you settle for just average work to be done on your flip then it is no different than all the rest. So I have found that it is better if I do it to satisify myself. I am very picky when the work is being done, but it really, really shows in the finish product. Last year I only had 1 flip that was on the market over 32 days and my profits was from $15,000 to $32,000. I try to pick homes that are in good locations and that I think I can finish in 30 days or less. There is one thing on all the flipping shows that I do agree with 100% and that is that time is money. I get most of my homes through short sales, master commissioner sales and auctions. Don't take this as bragging it's just the facts, I don't brag about what I make, but I do brag on my homes. Last year I actually had a home that the Home Inspector got mad because he couldn't find anything wrong with the home.

[flippinout]

Hello there again realestatehound, I was just reading through your last post and was wanting to know if you would please explain what a master commissioner sale is.

This is a term that I have never heard before and am very interested in knowing what it is. And another thing, is that something that is just available in your state, or is it available everywhere?

I also want to take this time to thank you for all of your input here at New House Flip, we are all in a learning process because we cant possibly know all of the nuances of house flipping and all information is greatly appreciated.

[realestatehound]

In Ky. every county has a Master Commissioner. This is the final step in the forclosure process. They are usually attorneys and when the foreclosure attorney file's all the paper work and the courts approves the sale it then goes to the master commissioner who must advertise it for at least 3 weeks prior to the sale and then they sell it at the court house. Usually their will be between 10 and 35 homes sold in 1 day. The banks that foreclose usually bid on the property. Sometimes I watch 50 or 60 homes sell before I find one that is low enough to buy and make a good profit on. I have bought as many as 3 in one day. You just never know what the banks will bid them in at. This is however where I get most of my house's to flip. I hope this answer's your question, if not let me know and I will try to do better.

[realestatehound]

Hey BadMomma, I didn't mean that the contractors around here don't do things correct. Most do get all their permits and things, but I have found that most are more interested in getting the job done and getting their money. I guess that for an untrained person this is fine, but I have been doing this for years, heck my Dad was a plumbing contractor. He always told me that if it was worth doing it was worth doing right. I feel that way when I flip a home, the buyer should get the best possible home for their money that I can do and that is what I do. What this does is that it gives me a great name when I flip a home. I have several realtors that when they get a new buyer they will call me to see if I have a flip in their price range. I take great pride in my flips and the finish home. I guess it's not the contractors fault, but mine. I guess I'm to picky, but my name is the one on the line and I want it right before it goes on the market. I hope this helps you better understand where I'm coming from now.

[flip_it_fast]

I don't see you doing your own work as being picky but more as being caring. It sounds as though you take a lot of pride in your work and I think that is awesome. Contractors tend to get caught up in their own deadline and it can hurt their workmanship at times. The more jobs they can complete in a short amount of time the more money they put into their pockets.

And a good name can go a long way!!!