A home flipper buys a house that needs some repairs at a price that is lower than the market value of the house. They then fix up the house and sell it for a profit. The repairs can be simple updates to the interior, like paint and new fixtures, or they can be major, like a new roof. The homes are usually pretty modest. A flipper is often just a person, or maybe a couple. They may have a couple investors behind them to provide money. They will do the repairs themselves many times to guarantee better profits.
You have probably seen the TV shows with house flippers. Life isn’t typically like that. Those shows have home flippers buying stunning homes in disrepair where they then dump $200,000 into the home to make it a showcase property that sells within 2 days for $900,000. Their budgets are massive. They have large crews, equipment, contractors, and design teams. Of course, that makes for better TV! Throw in the occasional trouble, like will the home be repaired within one week, and you have ratings gold!
Flipping a house can be very rewarding. First, they help out a homeowner who may need to get out of their house fast. They also buy homes that have been foreclosed, which may have been sitting empty for months. Second, they fix a up broken house, which improves neighborhoods and communities. Third, a house flipper makes a decent profit through the work they do. It isn’t risk free, since the housing market can be fickle, but with good planning and a balanced approach, the risk can be managed.
If a homeowner is in a bad spot, with a home needing repairs, or they are behind in their payments, someone looking to buy their house can be a life saver. The homeowner can get out of their house, maybe with a profit. They avoid foreclosure, and their credit improves.
Before the housing crash, it seemed like everyone was getting into house flipping. Tales of a person buying a home for $60,000 and selling it for $600,000 were everywhere. Since the housing market was skyrocketing for so long, those tales may have been hyperbole, but people were making big profits. After the crash, things died down. The gains weren’t as massive as before. But, it was still a good way to make money.
Google how to flip a house, and you’ll find some good and bad information. The long and the short of it is this: you will need enough money or a way to get a loan to buy a house. Look at neighborhoods you know. Do some research on market value histories in those neighborhoods. Finally, decide how you will get repairs done on a house you buy. Once you work out those details, you will have to take the final leap and acquire the house! Once you have your repairs done, you list it just like any other house. When you are successful, move on to your next property!