Reality TV Shows Flipping Houses – How to Flip Houses With No Money
Reality TV shows have energized everyday people to dive into the real estate market and make money flipping houses. The dramatic presentation and profitable end results make the industry seem like a sure thing. It is true you can make big money flipping homes and if you stick with a winning formula, you will profit nearly every time. Additionally, if staking your own money to flip houses makes you weary, then read to the end to learn about how to flip houses with no money.
Don’t Do It Yourself
On TV the business owners are doing the actual work must of the time. The reason they are doing this is because they are the start of the TV show. In really if you want to grow your business to handle multiple projects at the same time and actually have a life, then work on building your team. You can manage the team and eventually hire a manger for that as well. If you are the one doing the work then all you did was by a job. You are not on your way to building a real estate business.
You Don’t Need A Perfect Property
On television, the home-flipping team often settles on that perfect property that will yield amazing results. It’s important to understand that’s a Hollywood formula designed to improve viewership.
In reality, the perfect home is like finding a unicorn. Most flipping projects deal with less-than-perfect properties. What remains important for flipping homes that you buy it right.
Use this free online investment calculator if and when you have an investment in mind.
Big Projects Rarely Run On Time
Watching a home flipping show makes the process seem quick and easy. After all, many of the shows run between 30 minutes and one hour. Your project time will be considerably longer when you first get started so always pad your budget with 1-%-15% more for the unforeseen events.
As you get more experienced, delays are still likely to occur but you will have factored these in from the start and budgeted for them. There will start to be projects that presently surprise you if you keep doing this. There will be some that are underbudget and completed ahead of schedule!
Construction Budgets Are A Science and An Art
Watching a TV personality whip out a calculator and add up remodeling costs makes it look simple. There are square footages, materials, labor and other tangibles. Home builders and remodeling professionals are quick to dispute such simplicity because too many “intangibles” exist.
Consider replacing the clapboard on the exterior of a home. One might expect to calculate the square footage and order an equal amount of material. But an experienced contractor might tell you to start by ordering an additional 10 percent to account for waste. That’s because a percentage of material that gets cut might not be reusable. After accounting for that 10 percent, add another 10 for human error.
In addition to all of your calculations and contractor bids, you will have to make some estimated guesses based on your experience and/or your real estate mentor’s council, if you are wise enough to seek it when you first get started.
Be Conservative With Your Estimated Profit
On TV they always seem to expect and make big money based on their initial projections. While it is true you should go into this business with the expectation of making big money flipping home, you must be conservative in your estimated numbers for each property. The acquisition, repairs, and holding cost is likely to be higher than you expected. At the same time the sales price could be much less than you expected as well. With conservative estimates, it might take a bit longer to buy each house but this will ultimately benefit you in the long run to ensure you make a profit every time.
Check out this article, if you would like to know more about how to flip houses with no money