The home flipping game isn’t the same as it was 10 years ago. Here’s what you need to know in order to be successful at it in 2019.
I get probably three to four calls a week from people who are thinking of investing in real estate. If they called me back in 2012, I would have told all of them to go for it right away. However, to get involved in today’s real estate market, there are a few prerequisites you need to have:
1. Know your numbers. If you’ve never flipped a house or don’t know anything about construction and you’re getting a loan at 10%, I’m going to advise you to run.
2. Stay away from long-term rehabs. Anything over six months runs the risk of trouble if the market shifts too much.
3. Have an exit strategy. Let’s say you do a rehab and it doesn’t go as well as you wanted it to. Do you have an exit strategy for the home in order to break even?
4. Stay away from high-end flips. We do a lot of flips, but I’m definitely staying away from the high-priced flips this year.
If you don’t have these four keys down, you better be careful. If you have any other questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.