The Reality of Flipping Houses

Flipping houses can be a lucrative real estate investment opportunity for you. You’ve seen it on TV, a foreclosed house that’s covered in cobwebs, foot-long holes, and is just in completely poor shape. The host and his team then time warps forward and “flips” the home, significantly raising the value resulting in a profit and a fulfilling ending.

However, the difference between a television show and flipping houses in reality is that there is no “educational” value behind simply watching the show. Sure, you’ll be able to understand the basics of house flipping, but what they don’t show you are the unforeseen complications, construction issues, and budgeting discrepancies that occur behind the scenes. Besides, do you think that they’ll let you in on knowing that the sponsorships pay for a good chunk of the repairs and renovations?

While it’s easy to get caught up in these shows, they shouldn’t be relied on as a foundation for your house flipping schemes. Take what you may out of the show, but it’s also important that you follow it up with educating yourself through books and consulting with experienced professionals that have had plenty of success in the field.

To be clear, these hosts shouldn’t be vilified, as many of them are successful real estate investors. The matter at hand is that there should be a fine line that should be drawn between reality and television. By rushing into the house-flipping industry, you could end up losing your entire investment solely on being unprepared and overly ambitious. If you’re interested in real estate investing, take the time to educate yourself so you can make the most out of your home-flipping endeavors.

Bio: Kuba Jewgieniew heads Realty ONE Group, awarded one of the fastest growing real estate brands in the nation by Inc. 500.