Flipping houses. So many people are influenced by the television series flip my house and want to take out their live savings or 401k to try their shot at real estate investing in the rough economy. Even back when the show first started running and the market was well…so so, even then you could find yourself in a deep whole with your turn at flipping houses if your are not sure. Have you considered hiring a mentor or even asking some of the guys that are currently doing it in your city if you could tag along while you see how they are getting into a home and how they analyze the repairs that need to be done, you know just observe from the sidelines. That will surly be better than jumping right in.
Wholesaling real estate and Flipping houses is a totally different ball game. Flipping homes comes with more risk than real estate wholesaling does. You have to come out the pocket with buying the house and that means either cash or credit cards. Not only that you have to hire contractors and buy house home materials to fix the house. If you got your comps done correctly and you get into the home with a massive discount, chances are you will walk away from the house with a pretty nice sized profit. If you decided to buy and hold, placing a renter in the home and sell the home later is not a bad ideal either. Real estate investing is done on many different fronts. Deciding on what front you want to start from is totally up to you and your financial situation. Again hiring a real estate coach or mentor will not be a bad idea if flipping houses is something that sparks your interest. At least you will be on the better end of the stick versus someone that has never looked at real estate as a form of long term investments.
Flipping Homes 101
So learning how to wholesale real estate and how to flip real estate is a big jump in terms of risk and reward. Wholesaling has many benefits because your risk are low, and your reward is high. At many times your reward is higher than the real estate investor that choose the flipping method. Why? Because you had nothing to risk, time frame it takes to get paid plays a major paid, and the amount of stress is lower when you wholesale real estate.
Also a major plus to wholesaling real estate over flipping houses is the fact that you learn how to get the leads your own way vs. having to pay a large finders fee from a wholesaling. You get to get the whole bread and butter of the deal because you have you very own lead generation campaign running and working. You know how to get them cheap, you know how to market cheap, and the best part about it is you know you to negotiate it lower than your competitors due to the amount leads you have flowing your way. Practice makes perfect, and on you first 2 contracts that you sign as a wholesaler, you may get the house for to much of a price. Far above what you should have. Do fret, get your feet wet is what I tell my students.