By Kathleen Macky
Youâ€™ve been watching some of those reality TV shows about flipping houses and youâ€™re pretty sure you could do just as well as (if not better than) some of the goofs on the tube. What you may not know is that most of those guys have worked long and hard to secure real estate licenses (not required, but useful when buying and selling multiple homes), become contractors (if you arenâ€™t one, youâ€™d better hire a professional for your crew), and learn the ins and outs of the business (from property assessment to money management to securing loans and following local building codes).
So before you jump head-first into flipping, consider some of the pluses and minuses associated with the business.
Let’s start with money
Cash is always the first thought when it comes to starting a career. How much will it cost and how much do you stand to make? The answer to both of these questions is the same: it varies.
If you want to become licensed in real estate, you could enroll in a program that lasts just a few months to prepare for the exam, or you could make a smart career move and get a degree. You may also want to apprentice as a contractor for awhile as a way to start from the ground up. There are several options when it comes to schooling, but you absolutely cannot learn too much. And donâ€™t forget about the initial investment to buy and fix up the homes youâ€™ll be selling. Not to mention, youâ€™ll also need to pay employees and consider the cost of insurance (for both health and property).
As for the money youâ€™ll makeâ€¦well, that number is virtually limitless. It all depends on how hard you work, how careful you are with spending, and how lucrative the market is.
You will be your own boss
One nice thing about flipping houses is that you have the freedom to manage your time. You will be your own boss. You can work as much or as little as you want (with flexible hours), rush projects or take your time, and schedule in vacations at your leisure. But there are two sides to every coin.
It is also your responsibility to ensure that work is getting done in a timely manner so you donâ€™t have to continue throwing away money on costly monthly mortgage payments (most professional flippers aim to renovate and sell a home before they make a single payment yes, that means under one month for turnaround).
You may also want to wait until youâ€™re established (or take on partners) before taking time off so you know there is someone you can trust at the helm of your enterprise. And be aware that problems will arise, so plan your schedule accordingly. Thereâ€™s nothing worse than getting a frantic phone call when youâ€™re thousands of miles away, but thatâ€™s all part of being self-employed.
Only you can decide if the possible financial gains are worth the stresses of the job. You may make a huge success of your undertaking or fail miserably, and unfortunately, some factors are out of your hands (like the state of the housing market). On the other hand, with proper education, deep and continuing knowledge of the many facets involved in property renovation, solid financial backing, and a sound business plan in place to get the ball rolling (and keep things moving), you stand to earn a good living and enjoy an exciting and fulfilling career in real estate if you choose the life of a flip houses.
Kathleen Macky owns a real estate website where you can browse Wesley Chapel homes for sale.