Is Flipping Houses For You

Dated: 07/01/2019

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There are a wide variety of ways to invest in real estate; To be successful in real estateinvesting, it’s critical that you identify what skills you have and your tolerance for risk. Flippinghomes is one of these ways, but not every investor is prepared for what house flippinginvolves. Understanding the model can help you determine if this is the right investmentstrategy for you. 

Investors can make great profits by both flipping properties. First question is what kind ofincome are you seeking, active or passive? Actively buying, fixing and flipping properties isquick cash that requires careful timing and effort. Rental properties on the other hand offerpassive long-term income which accumulates over time. 

The second consideration is risk. Flipping is really speculation. When buying a flipper, onemust gauge the cost of refurbishment, remodeling and the cost of the holding time into theprice valuation, then carefully market the home and realize the profit. Any number ofvariances can occur which could cause the value to drop and profits to reduce or evendisappear, such as a delay in remodeling or a slow real estate market. Having ready cash tocover the unexpected is critical to success. 

Flipping houses is one way to invest in real estate. For those who are able to plan for theunexpected, this quick turn-around model might be a great tool for wealth building.Understanding your market, resources and risk tolerance is the first step in deciding if flippingis right for you.

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Jason McLaughlin

Jason has lived in the Golden and Arvada area for more than 25 years attending Golden High School and then later gaining a Bachelors of Science Degree in Organizational Leadership and Emergency Manage....

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