You seen shows on TV like 'Flip That House' on the Discovery Home Channel, Flip This House and other house flipping TV shows and see money being made by average people buying, renovating and re-sellling houses. The house flipping TV shows are very popular. They are interesting because they are real stories and the challenges facing real people, average people, like us. The people that are flipping a house after fixing it up are not experts and some are on their first house flipping for profit. Is it that easy to make good money? The theory is simple, you buy a house that has problems and fix it up to make it look good for a buyer that doesn't have the time or ability to fix up a house and wants to move in to a nice home. Many have made money and the stories are true for the most part. The shows fast forward to the conclusion and show the person happy when they make money at the end. But it took time to remodel and hard work. If you think you can do the work remodeling and fixing, this may be a good business for you.
There many things you must think of before going into this business. Do you have the time to do the work? You will want to do things yourself and not hire professionals to do all of the remodling. If you have a job or other family obligations or school, you may not have the time to do the work and follow up on orders you place for material and to meet people you hire to do some of the work you can't do yourself. Time is money. The longer you take the more your mortgage bills and taxes will add up and then it will take time to make a sale once it's on the market. The most important issue to think of is money. How much will it cost. You have to be really careful you are not going over your head. The costs to remodel a house add up fast and once you start tearing things out more problems reveal themselves. Pipes can break, electric wires may not be up to standards. There can be structural issues of sinking foundations, floors that are not flat or walls that are crooked that will make renovations much more difficult if you're not an expert. When hiring contractors you must be careful and be sure you know what you're getting for the money. Get things in writing and pay after work is done.
Before going in the business of house flipping you have to know what you're getting into. Do not dream of fast money. It's long hard work and stressful. You should have much more money then you count on spending and you shouldn't be counting on running up debts on a credit card. You should have the cash and a cushion to pay for the inevitable expenses you didn't expect. You need plenty amounts of money, time and ability for the house flipping business. If you are short on either money, time or ability, think long and hard. You may find yourself with a disaster on your hands and losing money. If you have the money, the time and the ability to do a large amount of the work yourself this is a good way to make money.
When houses are going up in value like they have the last few years it's easier to make money. It's seems by the month home values keep going up. But this will change and you can't count on rising property values to make money or even get your money back. When figuring what you think you can make think of the possibility that houses will actually decline some from the offer prices. Some people are over pricing their homes for sale. It's important to look at what houses actually sold for. Do not expect to get what others are now listing their house for, they may be over optimistic and over pricing.