Walnut Street Finance Blog

"Flip" Isn't a Four Letter Word!

Posted by Walnut Street Finance Team on Jan 23, 2020 9:30:00 AM

FL!P ISN’T A FOUR LETTER WORD

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Do your palms start to sweat at uttering “I flip houses” because of some bad press? As a real estate investor, you should be confident and proud of what you do. Although at times it can be a dirty job, house flipping is by no means a dirty word. Unfortunately there are a few lousy eggs who have spoiled the batter, but truth be told house flippers are doing good for towns by bringing value to properties and neighborhoods.

Not a Get Rich Quick Scheme

It’s so easy! You buy a house, fix a room or two, throw it back on the market, and see the dollars roll in. Nope. Not even close. Real estate investing is a serious business and should be treated as such, applying due diligence, financial savvy, and time management.

The negative connotation could come from criticism to due:

  • Flippers who put lipstick on a pig, doing superficial work like slapping on a new coat of paint while leaving things like old HVAC systems, leaky roofs, or foundation damage for the unsuspecting buyer.
  • Unethical rehabbers who use shoddy workmanship and poor quality materials for a fast cover-up job.
  • Self-proclaimed real estate gurus who are selling courses based on the “get rich quick” disguise for house flipping.
  • Reality television shows that don’t show the nitty gritty of house renovation, like dealing with lawyers, taxes, loans, let alone construction pitfalls that can pop up during a a project.

 

Flipping the Script

Don’t be these guys. The best thing to do is approach each project as a sound business investment and do all of your research ahead of time. Set your goals and realize what is possible within a reasonable amount of time, otherwise you can risk losing money or being put into the category of a bad house flipper. As an honest real estate investor, communities will benefit from your contribution…and you can assure that you’ll continue to invest in homes with confidence to build well and sell with a profit.

Here are just a few ways house flippers do good:

  • You provide work for local and regional architects, contractors and laborers, including plumbers, electricians, and designers.
  • You’re generating income for local lumber yards, plumbing and tile supply stores, hardware shops, paint stores, and more.
  • The houses you remodel some towns can bring tax revenue into a community, helping with overall growth.
  • Renovating one home can increase the value of the homes around it. Not only does the home look beautiful, you are bringing potential to a street for more beautiful homes.
  • A freshly upgraded home brings happiness and improved quality of life to the buyer. Additionally, they could be a repeat customer as their family grows or shrinks and needs for a larger or smaller home are introduced.
  • Stepping into a situation where a homeowner needs to be rescued and be lifesaving. As a house flipper, you can alleviate pressure from those who are facing foreclosure, bankruptcy or other financial hardship.

House flipping is a career choice that cannot only help you and your family, it can help the communities in which you conduct business. The smarter choices you make the more success you can enjoy, not to mention bring joy to others.

So, let’s start talking about your next project!

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Topics: Fix And Flip Advice, Real Estate Investing Tips

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