To Own or To Flip?
Like we’ve mentioned before, owning a home is part of the “American Dream.” In the last few years, though, it seems like the dream has shifted from owning a home to flipping a home or two or three.
Shows like “Fixer Upper,” “Flip or Flop,” “First Time Flippers,” and a lot of other amazingly alliterative HGTV shows have recently become so popular that the American Dream has changed.
It’s no longer enough to own a home. It’s now imperative that the home be purchased at a great price and in a terrible state. Blood, sweat and tears have got to be poured into the home (while maintaining a cheerful, positive attitude, of course), and it has to be done in record-breaking time. When the home is finished, it has to be decorated with only the trendiest styles – think succulents, a grey color scheme, and Edison bulbs encased in wiry light fixtures.
As with any other fad, people are inclined to get overexcited and dive in head first. We worry that rushing into the home flipping craze will cost people resources, that moving too fast won’t have a good outcome. So, we preach patience.
We truly believe that investing in real estate is a sound decision, and we’ve flipped our fair share of homes. We know that great deals do exist, but it takes time to find them. We also know that research and experience are required factors for success. You’ve got to understand the market and know that flipping a home takes vastly more than some physical labor and an eye for design.
Before you start looking on Zillow and Trulia for foreclosures, do a smaller project on your own home. We challenge you to remodel your bathroom, update your trim and moldings, refinish your hardwoods, or revamp your kitchen. See if you have, or can learn, the concrete skills needed to flip a home. Having recently committed to renovating my own home, I can assure you that every project takes three times as long and is twice as expensive as you think! Always anticipate and prepare for the worst-case scenario to be safe.
If you complete a successful project and love it, start researching and educating yourself on market trends, on tips and tricks for budgeting, and browse through our previous posts for additional assistance. We want you to be cautious and mitigate your risks but ultimately want to empower you to live your American Dream.