I hold an active real estate license and am a member of the National Board of Realtors® although that is not my full time job. Even so, I am still very interested in the hot trend of real estate shows such as TLC’s successful series, Flip That House. That being said, I’m always left with an uneasy feeling after watching it because the show never tells the full story of the potential money people will have when they walk away from the flip. The real issue is all of those “other costs” that come into play when selling a home. In so many episodes, there really isn’t much money left to be made yet the “flippers” still have huge smiles on their faces. Let’s take a look at the problem.
The show always starts with a house in desperate need of work. The show takes us through the flipper’s journey and at the end the home is simply beautiful and ready to be put on the market. At this point, a Realtor® will show up and walk the home with the owner, graciously complimenting the work that was done. When the walk-through is complete, the Realtor says that based on the other homes that are on the market in their neighborhood, he or she thinks the home will sell for [insert price here].
Purchase Price: $325,000
Expenses: $75,000
List Price: $450,000
Projected Profit: $50,000
The camera cuts back to the buyer that proudly goes through the costs of the flip and then gives us the projected profit figure. All the while, a box similar to the one on the left is on the screen, encouraging viewers to flip houses to make those big bucks! Of course, the problem here is that the $50,000 profit is gross profit and these sellers will have nowhere near that sum once the house is sold. In this buyer’s market, that number could actually be negative. Wipe that smile off your face, flippers.
The Real Flip That House–Other Costs Are Everywhere
The Real Estate Agent’s Commission
In our example, the flippers are chasing $50,000 on their $450,000 asking price. We’ve met the real estate agent but oddly enough, her commission does not show up anywhere in the aforementioned projected profit box. Commissions are set by the individual real estate brokerage and usually hover around the 6% range–some offices charge more, some offices charge less. The money will be split between the real estate agent we met and the agent that brings the buyer but we’ll assume it is 6%. If we look at this agent’s commission of 6% on a $450,000 purchase, our flippers will be shelling out a whopping $27,000 from their $50,000 potential profit!
Potential Profit after commissions: $23,000
Closing Costs Paid By The Sellers
Whenever a house is bought or sold, there are closing costs that are paid by both parties. The amount varies by county but we will assume around half a percent will be paid by the sellers for the sake of this example. Our flippers are going to pay $2,750.
It is also important to question whether the closing costs our flippers paid when they bought the house are included in the purchase price that they quote before. The purchase price is usually a nice, round number such as $325,000 in our example. This really leads me to believe that TLC is leaving out this key expense. Let’s give them the benefit of the doubt and assume it is included.
Potential Profit after commissions, closing costs: $20,250
Who’s Paying The Mortgage During The Flip?
I sincerely doubt that a lot of these flippers are paying cash for the homes featured on this show. After all, they need cash on hand for their renovations. If we assume the flippers put a down payment of 20% on their $325,000 home and finance the remainder at 6%, they are looking at a monthly mortgage payment of around $1,550. Most of these flips take a month or two to complete. But what about the time the home sits on the market? It isn’t uncommon for homes to sit on the market for 3 months before they sell (sometimes they don’t sell at all!) while our flippers are paying the mortgage. If we assume the flip takes only one month but the home sits on the market for an additional three months, our flippers will pay $6,200 in mortgage expenses.
Potential Profit after commissions, closing costs, mortgage: $14,050
What About Homeowner’s Insurance? Let’s Cut Some More
In the four months that this flip sits on the market, will our sellers be paying homeowner’s insurance? Absolutely! It would be a very risky investment to not carry homeowner’s insurance during a flip. The potential for fire or water damage is grealy increased when a house is under renovation and we’re seeing that the flippers are already working under a tight budget. For a $325,000 home, an annual homeowner’s insurance policy costing $2,500 would be an absolute bargain in most states. Even so, we’ll give them a policy of $1,200 (about half the cost of our bargain estimate) for the sake of argument. Our sellers are going to pay $400 for this policy for the four months that they hold the house.
Potential Profit after commissions, closing costs, mortgage, insurance: $13,750
What If Flippers Go Over Budget?
The box on the TLC show does take into account how much the sellers actually spent by showing their real budget. But what if this flip ran into some trouble and the buyers went just a little more over their anticipated cost of renovations? We only have $13,750 left in the pot for them to make but that amount would sharply drop into the negative if mold or water damage were found. I feel bad for our hypothetical flippers so I’m going to take it easy on them. No issues found and we’re still at $13,750.
That’s Great! We made $13,750 For Only One Month Of Actual Work!
Not so fast, flippers. You haven’t sold your house yet! In this buyer’s market, do you think anybody will walk in and say, “This is great. We’ll pay your full asking price!” Of course not! In the town where I live, housing prices haven’t taken quite the hit that they’ve taken elsewhere in the country. Buyers are still paying about 3% less than asking price. That presents a problem for our flippers. A buyer offering only 3% below the asking price of $450,000 will pay $436,500. Of course, the commission will be slightly less at only $26,190 but our potential profit has absolutely tanked.
Potential Profit after commissions, closing costs, mortgage, insurance, bargaining: $1,060
Just Kick Me While I’m Down–Taxes Eat Away Further
Our hypothetical flip hasn’t tanked just yet. In fact, our sellers still made $1,060 after being nickel and dimed throughout the process. Unfortunately, Uncle Sam hasn’t claimed his portion of the $1,060! I don’t even want to get into this as the example has already become quite depressing.
So Is Flipping A House Worth It?
I’m really not convinced that all the risk associated with flipping a house (in this example) is worth a true potential profit of $1,060. But think back to the actual show itself–our sellers had a huge smile on their face when they said their potential profit was $50,000. Are they nuts?
Throughout this example, I’ve used low numbers for my estimate to highlight a point. Even being very conservative, the potential profit is next to nothing.
To make any money flipping a house, flippers need to get in as low as possible. We’re in a buyer’s market but those opportunities are still extremely rare. In most cases, most of this magic “potential profit” number are going to be eaten away by so many costs that it because unfathomable to attempt a flip.
An Open Letter To TLC–Tell The Full Story
I have thought quite a bit about why TLC doesn’t go into more detail on the true costs associated with a flip. The only thing I can come up with is that the show wouldn’t be nearly as compelling if we watched people go through so much work to make a few thousand dollars. $50,000 as a potential profit is far sexier than $1,060 and makes for exciting television.
Unfortunately, it is deceitful on the part of TLC to not tell the full story. I would hope that most people have the common sense to examine all of these costs before diving in but we know that people are much more impulsive than we’d like to believe. I am sure that there are people out there as you’re reading this, flipping homes with a smile on their face, when there is absolutely no potential for them to profit.
What Do You Think About Flipping Houses?
Have you flipped a house before? What was your experience? Was there any money in the deal for you once the flip was complete? I’d love to hear honest stories about your own flip in the comments section.
If you haven’t yet ventured into this risky world, have you considered flipping a home? Do you watch the TLC show? Please tell me your thoughts as well!
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51 Responses From Our Readers
1.) Colin at December 1, 2007 around 11:59 pm
Most of the episodes I’ve seen (and I love the ‘house porn’) they do mention closing costs, mortgage costs, and the costs of things like commissions. I agree they do skip over taxes. You make a good point however, a foolish person watching the show would think it is easy money and may walk into this blindfolded and end up losing everything. I’d love to see a show all about flips gone wrong (especially in the current housing market) where people completely fail and lose everything. It would make for great television.
2.) Leo at December 2, 2007 around 12:09 am
You’ve hit upon something I’ve thought every time I’ve seen the show. There’s a lot of expense that’s either quickly skimmed over or ignored completely. As you say, the true profit is probably a very few % at best, not the 15-20% suggested in the glitz portion of the show.
3.) D.S. at December 2, 2007 around 12:23 am
Nice analysis…this definitely makes sense. However, don’t you think that anyone who flips houses for a living would have a realtor or broker license? If you pocket the commission, your profit goes way back up…
4.) kt at December 2, 2007 around 12:23 am
THAT’S SHOWBIZ! The magic of TV makes all the extra expenses disappear and everyone smiles!
5.) chris at December 2, 2007 around 12:32 am
I rehab for a living. Any professional rehabber would not touch a house unless there is sufficient room for all of the issues you stated. Typical Realtor, knows nothing about the business but is great at filling out paperwork.
6.) Anthony at December 2, 2007 around 12:33 am
I’ve seen plenty of revisit episodes where they do their ‘flip-forward’ at the end of the show to see what actually happened when the house was sold and how much was made, which always includes the additional costs. But you’re right, they don’t show all that on most episodes.
7.) Bob at December 2, 2007 around 12:34 am
I have flipped a few houses in my time, but I lived in each house for three years and gradually chipped away at the renovations and the gardens and the decorating, doing most of the work myself. My last house was the best deal because I was getting pretty good at it. I sold the place and got back my initial down payment of $30,000; the $50,000 in renovation costs; plus an added $50,000, so the whole deal amounted to a fixed savings plan for me. I watch all those flip shows on TV and they seem completely unrealistic to me.
8.) wools at December 2, 2007 around 11:12 am
Gosh, who has an interest in selling houses at any price, regardless of the seller’s profit? Hmm… I bet the conversation was like this, “Let’s make a TV channel dedicated to the concept of reselling your house every year. Our commissions will be awesome!”
9.) Johnalong at December 2, 2007 around 11:27 am
Who cares about the clowns on the show and whether they make money? The purpose of the show is to make money for TLC.
10.) Jetmark at December 2, 2007 around 11:35 am
I have flipped many houses, maybe 75-100. Some you win some you lose. I liked to look at the average. If I can average 10k per house and did 20 in a year I was smiling. If you do enough of them and you are talented in your buying decisions AND you have enough cash to get you through tougher times it will work. Unfortunatly, you may have a few houses you barely break even on and then that one gem that pulls your average back up. It is definately not for the average person to do, except that Bob(#7) has the right idea. Fix it while you live in it. Tax benefits as well as trickling the cash into it.
11.) figglypooz at December 2, 2007 around 11:35 am
While the home owners are in fact not making much (if any) money on the house, TLC is making a fortune! It’s likely that the people on that show probably get paid to smile…not to mention the element of reality taken out of it all by having full camera crews in their face all the time…
ridiculous.
12.) Mark at December 2, 2007 around 12:13 pm
I agree, the other thing I’ve noticed is when they talk about different expenses, they all seam very cheap compared to where I live. They talk about spending $2700 on landscaping, here that would by the materials, but not cover the labor. $4000.00 for a new roof. Not where I live and I live in Northwest Arkansas
13.) Dave at December 2, 2007 around 12:38 pm
I made my living for 20 + years by working on REO and government foreclosed homes. I cannot put a number to the “investors” I’ve seen that thought they could make money flipping houses. The vast majority of those never made it past one home and I completed many of their “rehabs” so that the bank could resell the home after they lost it. There are a few true investors that do make a nice living flipping homes but they have a good network of realtor’s that bring them the “cherries” and then they really do very little in the way of rehab before they flip the home. For the average “Joe” that show is extremely deceptive but, as others have said, TLC is getting what they want from it so it’s pretty unlikely that they will go into great detail on the downside of “flipping”.
14.) Jimbino at December 2, 2007 around 12:54 pm
I have also flipped houses after having lived in them for a couple of years. Since up to $250,000 of profit comes out tax-free, I earned a lot of money by having avoided taxes like the 15% Social Security and Medicare taxes in addition to the 40% or so I pay on the margin on my normal earnings as a computer professional.
I have come to think that any such professional is a fool to pay a plumber or electrician $1000 for a $450 job (they charge outrageous prices and are also in a 55% marginal tax bracket). To pay $1000 for that $450 job after taxes, the professional will have to have earned $2,200! So if he enjoys remodeling, including plumbing and electrical work, he only has to be about 1/5 as efficient at it to come out ahead. And he can drink beer while he’s remodeling!
15.) flipper gordon at December 2, 2007 around 1:11 pm
I find it funny how reality shows always cover up the fine print. yes there is a ton of money to be made in flipping a house but few people really have the talent or drive to do it.
16.) Mayra at December 2, 2007 around 1:34 pm
Yes, I have flipped a few houses and it’s been profitable, and where a “flip” was not possible I simply rented. Having had previous experience in this I am fully aware that the program is mostly painting a rosey color picture and I watch the program for its entertaining value, not it’s numbers. I would have to be out of my mind to watch a program like this and run and invest without doing my due diligence. Sorry guys, I love the program - it’s about the only relaxing thing related to flipping houses…..
17.) Chris at December 2, 2007 around 1:39 pm
Thanks for all the great comments! To answer D.S.–A lot of flippers do have their real estate licenses but I would say that most of those on the show do not. It always shocks me since it really is quite easy to get. Saving commission would make so much sense yet these flippers don’t seem to try.
18.) Mike at December 2, 2007 around 2:06 pm
I think the show is funny to watch because the people obviously don’t know what they are doing, and I’ve always ignored the numbers, knowing it was b.s.
In today’s market, I think the only way you can honestly flip a house is if you can do 90% of the work yourself. You can’t make money contracting out the work.
19.) N at December 2, 2007 around 2:44 pm
IMHO, if you come out with only $1K, you really don’t know what you’re doing and have not done your homework. I’ve flipped two, kept five as rentals and would love to do more, but the profitable ones are hard to come by. Profitable for me means not too much work and not too expensive to purchase (mostly repos/foreclosures) back when those were affordable. And before I plunk my money down, there’s lots of homework to do.
20.) Ryan at December 2, 2007 around 3:39 pm
Lets consider a few things…
1) how many people do you know who can put 20% down on a 300k+ house (their second+ house no less)
2) those who can afford to do so most likely have full time jobs to be able to afford to do so. if they work full time, how likely is it they can dedicate 1-2 months full time to renovations plus significant time trying to find the house to buy and then find a seller afterwards
3) most people are not good with math, aren’t good with tools, and lack the know how to do most of this themselves. The more work they do themselves the more they make in profit, however, it takes them more time (i.e. weeks/months) to do the work which is problematic if they have full time jobs
4) TLC et al have a vested interest in promoting the flipping.
a) its fun to watch the shows
b) the more eye ball hours they fill the more their advertisers pay
c) the more houses that are flipped the more advertisers (Home Depot? Lowes? Sherwin Williams, Viking, etc.) benefit from the shows
5) Producing shows where the camera only shows 4 foot square walls being painted will only sell a maximum of 1 paint brush and 1 gallon. Making a single room renovation means some buyers will do a whole room and some will do less, i.e. 1 wall. But showing an entire house will encourage some people to do the whole house, some to do a room, and some to do a wall. i.e. show the biggest, most expensive and enticing renovations to capture the largest market of buyers (painting one wall won’t convince they green thumbs to spend $2500 on their yard, but a whole house show might, same with a roof, sump pump, etc.)
Face it. TLC wants your eye balls. You can bet that each consumer that decides to renovate or flip will watch countless more hours of their shows and hence buy far more products. Like buying a car, rarely is the decision on what to buy/renovate/repaint based on sound financial decisions. It is an impulse buy based on your emotional feelings
That being said, TLC is not selling us a renovation, they are selling us entertainment. If we enjoy the entertainment we are more likely to partake in their advertisers’ products….and that boys and girls is why TLC broadcasts 18+ hours of TV each day (and when a house flipping show brings in less advertising dollars than it costs to produce, they sell their eyeballs to late night infomercials)
21.) HD at December 2, 2007 around 3:59 pm
Flipping is nothing more than glorified handyman churning up home prices. Thanks to flippers ,most homes are so expensive now that teachers,firemen,and even policemen cann’t afford to live in the city they work in. Without teachers, maybe there will be more flippers out there. Flippers vs more flippers. Now that would make a great TV show. It’s ironic that this is from TLC, The Learning Channel.
22.) TV at December 2, 2007 around 4:21 pm
Trust me–never believe anything you see on tv–especially “reality shows,” which is basically what all these shows are on all the home networks. I’m 99% sure that the numbers that go up on the show aren’t even real to begin with. It’s entertainment people.
23.) Lisa at December 2, 2007 around 4:22 pm
When you put it that way, it’s definitely not worth it! And unless you are Bill Gates, you are probably working a full time job and trying to maintain a family or social life. You would basically be working all day, all night, every weekend, 24/7 for less than you take home in your regular paycheck.
24.) Mike at December 2, 2007 around 4:36 pm
I hate to watch that show because the renovations they show are so half-assed that I feel really bad for anyone buying the house in the end. So many of the projects seem half done. I doubt if the flippers would want to live in the house themselves, knowing what’s under the carpet and behind the paint.
25.) andrew at December 2, 2007 around 5:01 pm
Finally someone is able to point out all of the risks involved with flipping houses. I am a fan of the TLC show and watch it fairly often, although I must admit that some of the people make me what to pull their hair out for them. I saw one episode of a black guy flipping a house outside of Atlanta, GA and he knew absolutely nothing of how to successfully flip a house. Anyway, being young I would really like to flip a house; I just know that in order to succeed in this business you have to buy the cheapest properties and do your research before buying a lemon. Don’t always buy the cheapest, you get what you pay for and that is so true. There is nothing wrong with a good deal here and there, but you know that no one is going to take a cut in their pay to give you a deal. Good luck out there flippers and thanks for the good post.
26.) MP at December 2, 2007 around 6:25 pm
Remember folks, it’s TV! I want to do a blog about all the blogs that are shocked! shocked! that TV shows are inaccurate, ads are full of puffery and politicians lie…
27.) Andy at December 2, 2007 around 6:52 pm
I’d have to believe that there is some assistance from TLC to the flipper, like paying closing costs or the commissions. Otherwise what good is it to the flipper?
If I was a flipper, I sure wouldn’t want to be stumbling around a camera crew without some compensation…
28.) Chris at December 2, 2007 around 7:01 pm
@Andy:
Not only that but they’re telling other people how to flip successfully. Why help the competition? Good point.
29.) Pete at December 2, 2007 around 9:22 pm
Every average suburban dudette does not need granite countertops and cherry cabinets. Now way, no how, not for a nation of fast food eaters. About the numbers.. Expect a 25-40% fall in house prices over the next 3 years. Ain’t no way to make a profit at all in that market unless the house starts off free.
30.) Ken at December 2, 2007 around 10:11 pm
My real beef with ‘Flip That House’ is that they don’t wait to see what price the seller actually gets. It’s all wishful thinking ending the episode with the projected price. I always feel cheated with those endings.
Therefore, I prefer to watch the show ‘Property Ladder’ on TLC. That show always tells you how things really ended — what price the seller actually got and how many months the house was on the market.
31.) Richard at December 2, 2007 around 10:22 pm
FFS its just a TV show. If you are so concerned about reality talk to a war vet who just came home from Iraq. Then take your country back from the fascist regime that has made your country poor and broken.
That would be TV worth talking about and people will remember it in 50 years.
32.) brian at December 2, 2007 around 11:21 pm
I’m a remodeling contractor and I can say with authority that the estimates they give for their renovations are grossly underrepresented. One show I watched budgeted $50,000 to completely gut and finish a 2000sf home from studs to roof AND added a master bedroom addition off the back porch. I don’t care where in California you live with any amount of cheap, illegal labor you have - most of the budgets they advertise are impossible and will only entice more novices into this skins game only to lose their shirt in the end. These shows are false advertising, plain and simple.
33.) Real Estate Investor at December 3, 2007 around 3:37 am
Unless a person has a skill as a contractor on renovations or have a couple of buddy contractors of varying specialization (plumbers, electricians, etc) to help in renovating a cheaply bought run down house, it would not be wise to invest in house flipping. This lesson I have to learn on our first venture on this business. Learning from that, we luckily broke even on the second one.
34.) Amber Westerman at December 3, 2007 around 10:11 am
Very nicely done. I am also a Realtor and always try to stress this to customers and clients that want to flip houses after watching the show.
35.) Bobby at December 3, 2007 around 10:25 am
Glad to have read this and all the replies. I’m renting now and work full time and do have the 20% but would have no time other than weekends and evenings to work on the house.
I was thinking if I can flip a few I can save enough for my dream home but this looks like I may also end up loosing my life savings if all goes wrong.
Something to think about!
Nice article!
:o)
36.) TLC « Thoughts by Isaac at December 3, 2007 around 2:30 pm
[…] December 3, 2007 http://www.dailybrilliance.com/flipping-houses-the-true-story-of-potential-profit/ […]
37.) Jeff at December 3, 2007 around 3:35 pm
One thing I think you are taking for granted is that the flippers are using realtors to sell their properties. In a lot of shows like this, the show brings in local realtors to get appraisals but they don’t say that the flipper is actually going to be selling the property using that, or any realtor. If the flippers manage to sell their house without the assistance of a realtor, they a large portion of your “lost profits” come back on the table.
38.) Ann Onnemous at December 3, 2007 around 5:30 pm
My friend and I flipped a house. Did everything wrong, partnered with the wrong people who didn’t help, but sold it the week it went on the market and made about 30k. Even after capital gains and such, it was really at least as much as what was made at the full time job in that time frame. There is a lot of fat that could have been trimmed and things that were over-improved that could have been not done, and stayed in the profit column.
The trick is, of course to get the property cheap. Foreclosure, or whatever. Things take longer, cost more and make less than you think but that’s no reason to think that it can’t be done. It takes diligence, and with all the people doing it, it takes out smarting the competition, too.
I encourage people to break out of their comfort zone, and try things. if they fail, so what, be more careful, learn more and try again, or try something else. You KNOW you’ll fail if you don’t try and just stay at the job. Life’s short- get off the porch and give it a shot. You’ll eventually learn enough to make good money, I think.
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42.) Larry at January 6, 2008 around 3:09 pm
Do the homeowners get any funds from producer for being on the show?
43.) Don Simril at January 6, 2008 around 7:23 pm
Having been “flipping houses” for over 48 years, I too think that TLC as well as A&E are just selling their air time and not telling the whole story on their “flippers”. As I was perusing your website, I actually saw my website listed on “ads by Google” in the side bar. It is SOP for me to not even give a second look at a potential purchase unless there is at least an $80,000 GROSS profit on the flip. There are so many factors that bring the gross figure down, that the uneducated investor doesn’t stand a chance of making a profit if the purchase price as well as renovation cost, holding cost, fees and the after renovation price estimates are not calculated accurately. That is why it is so important to anyone who is anticipating entering the real estate investment business to educate themselves on the subject. Join a real estate investment club (REIC), connect with a reputable real estate agent who understands the goal of an investor (that means one who is willing to submit low, low offers to Sellers), surround yourself with positive minded people who have the same ambition as yourself, build a team that includes an insurance agent, several lenders, a real estate attorney, a tax advisor, contractors, suppliers, etc. I, like you, am a Realtor who subscribes to ethical standards in the real estate industry. Shame on me if I were to intentionally mislead anyone who relied on information posted on my website just to entice them to purchase my book. Keep up the good work on being a “whistle blower” on TLC as well as Armondo, the biggest fraud (not to mention, jerk) of them all.
44.) SEO For Real Estate at January 22, 2008 around 1:17 pm
Well I can t say anything right now as i have not been in this flipping experience. but as i have seen things on article and profits involve in it. I think it would be the good investment in flipping. and least getting upgradation on the real estate and make money in flipping.
45.) sumit at January 22, 2008 around 1:18 pm
great post let hope may be next i do something about it.
46.) Am I Blacklisted From Digg? Digg’s Response: Still Waiting… at February 13, 2008 around 9:30 am
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47.) Flip Houses at March 7, 2008 around 6:44 pm
Let’s not get too worked up about this. We are professionals who know every last detail of the business and Flip That House is ‘reality’ tv designed to elicit “ooohh” responses from people with nothing better to do that stare at the tube. Rehabbing a house is pretty hard to get right, usually there’s a lot of judgement involved that only comes from experience. So a half hour tv show about it is unlikely to get it right. Although I do agree, the numbers they use are ridiculous.
48.) jp moses at December 31, 2008 around 10:10 am
I’m stumbling upon this article a little late (like a year late) but you’ve hit on a nerve that’s even more relevant today. The TV shows are still going strong. And while they’re great entertainment to some, they paint an inaccurately rosy picture most of the time at best.
I’m an experienced house flipper - I know.
Thanks for a great, insightful read.
…jp
49.) jr in ky at February 22, 2009 around 10:47 pm
We are making 30k to 40k per house in KY. Need to know how to buy them. Everyone is paying too much for labor if you are doing 2 per year. We get the discounts because we keep our subcontractors busy.
Need to figure out the costs up front.
Ex. 2200 sq ft house bought for 220k, 60k fixup, 8k holding, 5% Real Estate Commision, closing costs 2,500 — SOLD at 360k 6 days on market. 2.5 mos to rehab. Profit = $51,500.00 not bad.
If you want to be a flipper you have to get it done fast mostly by others or you will risk paying more holding costs while you try to put in a floor for 3 weeks and cost you the same as having someone else do it in 4 days. Be smart not for the weak of heart, tough decisions have to be made fast and with precision.
Don’t let everyone scare you, it is like everything else, dont expect to know everything and be great on your first deal. Give it time and you will get better with each one that you do. I made 7,500 on my first deal. Learned from it and made 40k on my second.
God Bless and good luck
50.) rj in nc at February 27, 2009 around 6:08 pm
all of you negative people are funny to me. its a good thing most of you think this way it keeps less competition out here for us flippers. been a flipper 2 years and have learned alot plus made more money than working for someone. learn accounting and know your laws.
51.) real estate seo at May 27, 2009 around 10:27 am
Very good post. I think a lot of people get sucked into this sort of thing with high hopes. And it’s not really a long term plan to begin with.
If I had the money for this sort of thing I would be buying houses and renting them out for some monthly cash flow. It’s a lot easier to do and less risky if you do your homework. And when the market turns around you can sell them for a bigger profit and even do a tax deferred exchange and get something bigger and better to rent out for more monthly $ flow.
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