Flipping Houses: Is it Sexy Once Again?

April 6, 2012 - PRLog -- Flipping Houses is sexy again or is it? The real estate market is starting to pick up in many parts of the country.  That means many Americans are thinking big and dreaming about becoming house flippers again.  The question is whether this is wishful thinking or if it really is a good time for novice investors to get into the game.

Television shows such as A&E's "Flip This House" make the profession seem very glamorous.  They also make it seem like a breeze to make big bucks with very little time and effort.   Like any other skill, house flipping takes education and the proper training to be successful.  As easy as it may seem on cable television, it is best to have the proper guidance from a seasoned professional before taking on a house flip.  

There are some common pitfalls to avoid in house flipping.  First, make sure not to overpay for a property.  It is important to do the proper due diligence through a comparative sale analysis and appraisal.   If you buy at the right price and stick to your guns about not going over this amount, you will protect your profit potential.

Second, you must manage the contractors properly.  Too many novice house flippers end up losing their lunch money (and a lot more!) too shady contractors.  One easy rule of thumb is to only pay money for work that has completed.  Never, give large amounts up front before any work has been completed.  Offer to buy materials if the contractor insists that he needs the down payment to buy materials.  

Finally, don't get greedy when you sell your flip.  Price the home at an aggressive price that is just below the market value.  If you sell quickly, you will eliminate many of your holding costs and be able to move onto the next deal.

Sexy may not be the best word to describe flipping houses.  However, you can make money in this business with the proper training and education.

For more information, visit http://www.flippinghouses1.com

# # #

HouseFlipTips.com provides entertaining house flipping education. Rather than bore you like most "gurus," we make learning enjoyable. Whether you are a new investor or an experienced pro, we're confident that you will benefit from your time with us.