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8 Reasons Why Not Believe The Hype About Flipping Houses

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I’m not Lapin of the old school here….

As Chuck D and Flavor Flav say in the 1988 national anthem, some of what you hear about the inside out of a house may not be true.

Don’t believe it because there are lots of hype.

In particular, real estate investment and housing flipping are business areas where you can earn a large amount of cash. But many don’t believe it.

It’s not a “hype”.

Almost universally, owning real estate is an accepted means of gaining and accumulating wealth. More wealth has been created through real estate than any other means. It’s one of the top 6 industries To make money.

So why are so many people still so skeptical about investing in real estate as a means of wealth?

maybe Hype …

Now that almost everyone uses Google for information, you may come across some fake myths about business.The point is that it actually takes Hard work And experience – and the time to complete it.

Most of the real estate myths we encounter are created by the general public and the media, but few are created by real estate investors. To avoid being discouraged by these myths, you must first separate the truth from hype.

Related: Don’t be fooled by hype: how to identify really good deals

Now let’s take a page from Public Enemy’s late 80’s rap national anthem and separate the real deal from hype here.

Eight general “facts” about real estate investment

Below are eight “facts” about real estate that prevent people from taking action. If you can see what they are (bold lies), you are really free to succeed. Let’s begin!

1. You need to be filthy rich to get it done in this business … and lots of cash

lots of people Real Estate Investment Reserved only for those who are on the Forbes list or at least have a significant amount of money in their bank account.

That’s what they don’t know You can actually turn the house over without moneyIt’s all a matter of spending someone else’s money.

Some investors choose to take advantage of traditional loans to fund Flip. If all goes well, you can move from spending someone else’s money or taking out a loan to spending your own money when establishing yourself.

Great if you have money. You can certainly use it. But most people don’t.

Interestingly, I actually have money now, but I’m flipping home without my own money, so I haven’t used it yet. Read these case studies to see how that really happens..

2. Bad credit cannot get money

The traditional way to get a loan is to approach the bank.

Unfortunately, getting a loan is not easy if your credit score is corrupted. If you don’t have a track record of successful flipping, that’s not good either.

The good news is that even if you have bad credit, there are many other ways you can get money to turn your house inside out.

for example, You can go to a private investor.. Private investors in this case are wealthy uncles and other family members, colleagues and friends. They need to have good money they are willing to invest.

I actually got $ 230,000 from my internet marketing guy … I didn’t know. He funded Flip, which just hit the market last week.

Who knew it he Did you have any money?

partnership It’s another way to raise money. Many flippers with no money or credit make their partnership more attractive by offering to do all the work and splitting the profits into 50-50.

If none of the above work, consider getting a loan from a hard money lender. Hard money lenders don’t consider your credit score, but they charge you percentage points in addition to interest.

3. Investing in real estate is a dangerous issue

Real estate is included There is no doubt about certain risks… But thankfully, there are many ways you can minimize the risk without avoiding it.

wholesale It’s a great way to minimize risk and is a fairly safe approach for beginners.

When done correctly, wholesale is an ideal strategy for beginners to turn home without investing or borrowing their own money.

Regardless of how you invest in real estate, make sure you have done enough research before confirming your purchase. If you don’t think real estate is dangerous … Look at the return on your investment in the stock market over the last decade.

4. Only the contractor can turn the house

No, no, no.

you do not You need to be a contractor to turn the house over. Experience can help you save some money, but it’s not necessary.

The reason investors hire a team of contractors to carry out a rehab project is that it is less stressful than doing it alone. And if you’re not a professional, you’ll make more money by hiring a better contractor than doing it yourself.

please confirm You ask these 14 important questions..

Yes, hiring a contractor seems more expensive, but when a team of contractors are doing it, it takes a much shorter time to rehab the house. Contractors also do not have all the experience and therefore hire others to help with certain refurbishments.

And the faster you can sell, the better your profits will be.

Related: Working “on” your real estate business and working “inside” your real estate business

5. You should always sell immediately

As mentioned above, the faster you can sell real estate, the more profit you may get. This is due to less maintenance, utilities, taxes, insurance, and other necessary expenses.

Given the above facts, it’s no wonder that many house flippers get the impression that you have to sell as soon as possible. It may be good to sell as soon as possible, but you don’t have to. You can try the buy and hold approach.

There are two ways to do this. You can rehabilitate and rent a home for a month’s profit, or you can hold the property until it’s evaluated and sell it for more money.

6. Spring is the best time to close a deal

“Maybe you should wait until spring”

So they say …

Yes, spring and autumn are good times to turn the house over, but they are not required.

Many investors prefer to sell real estate at this time when the family is reorganized and the school is rented out. So, of course, demand is higher than supply.

If we were still in our 50s, this would probably be a good approach – But because we live in modern AmericaMay not apply.

Many of today’s buyers are families, but many do not have a family. And they are also buying a house.Don’t delay this excuse, just buy it right and use it 70% rule It sells quickly. please do not I will wait until spring.

7. You can join the Millionaire Club overnight

I hope!

Many “gurus” will teach you some “secret” tricks to help you get rich overnight. Only if you purchased their books, courses, etc.

If you have been Readers of this blog at any timeYou know you probably won’t get rich overnight.

To be successful, you have to work hard and keep an eye on the ball. Therefore, if you wanted to buy your own island after the first flip, you might want to jump out of the island.

8. If you look hard enough, you will find the best home to turn over

Sorry for the disappointment, but no house is perfect.

They are all flawed … especially if you are in the business of buying, refurbishing, and flipping like us.

In fact, more flaws … better.

The trash can is cash and the mold is gold.

The older a house is, the more money it may be able to make, even if the house has structural problems. Point out those issues, get affordable when buying, fix them all and turn that trash pile into a beautiful home where lucky people enjoy living for years.

If you get this far, please leave a comment below. I would like to know what these houses think of playing “hype” or other favorite old school rap tunes.

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