To Flip or Not to Flip?
- February 9, 2023
- 10:00 am
People have been flirting with the thought of flipping houses, and based on current statistics, it is a good idea to get started now.
House flipping has become increasingly popular over the past decade. In 2017, flipping houses totaled 5.7% of all home sales. By the first quarter of 2022, that share jumped to 9.6%.
The popularity of flipping shows such as HGTV’s Fixer Upper and Flip or Flop is impacting the industry.
Are you thinking about fixing and flipping houses to grow your wealth? According to nationwide house-flipping stats, national flipping activity continued rising, with 323,465 houses converted in 2021. It was the most homes flipped in a single year since 2006.
Enthusiasm for home flipping grew in the first quarter of 2022, with 114,706 houses flipped, up nearly 7% from the previous quarter.
The industry is gaining increased popularity. It is the perfect industry to grow wealth and achieve economic independence.
Is flipping houses better than all other real estate ventures? Well, that depends on what you want and what you are looking to gain from the real estate industry.
Glenn and Amber Schworm’s recent video, To Flip or Not to Flip, poses the question of whether one should or should not take the opportunity to make money quickly using real estate.
Who doesn’t want to make money and have passive income continuously? Fortunately, house flipping is an achievable strategy.
ARE YOU MAKING MONEY
Flipping houses can earn you quick and passive income, but what amount you can make is the real question. The goal is to profit considerably as the flip investor, but there is no guarantee that you will.
However, HomeFlippingWorkshop has a strategy that routinely increases investors’ profit margins.
Getting big money out of your flip depends on identifying and buying property at a discounted rate. You must also consider your renovation budget and the number of flips. Those are the expenses deducted from the profits.
Remember that some markets are more lucrative than others, depending on where you buy and sell. Flipping houses is a high-cost and risky investment.
The amount of money you make depends on different variables.
Also, when it looks like you will not be able to turn a profit, you can turn it into a rental to recoup expenses through rental income and sell when the market is right.
IS FLIPPING WORTH IT
Investing in house flipping can be rewarding and quite profitable. It is best to educate yourself. Carefully consider what experienced investors have done to succeed in the real estate market.
You are taking run-down houses and renovating and rehabilitating them to sell for a profit, all while creating new homeowners. So yes, flipping is worth it.
You need to know that your house-flipping experience will not be like the dramatic made-for-television version you see on HGTV. Even still, it can be pretty rewarding financially.
Beginning with a well-thought-out plan and realistic expectations will make your project successful.
When starting, you need to consider the following things that can help you figure out if it will be worth seeing through.
For years to come, people will continue to enjoy the success they receive from flipping houses. Start imagining yourself as one of them.
CASH NOW OR LATER
Deciding whether to get quick cash now or have recurring income later hinges on the investor’s strategy to gain wealth. Both are avenues to success in real estate investing.
When it comes to financial gain, the quickest way to increase your capital would be through a fix and flip. You can make a five or six-figure payday, depending on the value and work done on the property.
Building long-term income, such as passive income, is the opposite of a fix-and-flip. Long-term income is renting to tenants, which can go a long way to making a second source of income.
Flipping houses or long-term rentals is the path to success and building wealth. However, it depends on how you feel about your reward of higher income potential versus lower risk.
WEALTH BUILDING IN REAL ESTATE FLIPPING
Most people desire to make more money and build long-term wealth. But the question is, how can we do that using real estate?
Flipping houses is a profitable niche in real estate that is thriving. However, building wealth in real estate through house flipping takes money and experience.
House flipping generates excellent returns, but you stop making money when you stop flipping houses. You should know what flipping houses will not offer you:
Trying to grow capital through flipping houses essentially leads to the next stage of building wealth which is property investment:
Wealth building is what Glenn and Amber teach participants at the Home Flipping Workshop 3-day virtual training. Register today to learn everything you need to know about real estate investing.
BUY CHEAP, CREATE BIGGER PROFITS
According to Glenn and Amber Schworm, cheap off-market real estate properties are sometimes a bargain. It all depends on the different factors which can make the property profitable.
The Schworm’s 3-day Home Flipping Workshop course shows investors how property location can determine investment opportunities. They train students how to look for the potential of future appreciation.
If you are going to buy cheap, make sure you do as much as possible to protect yourself.
Research the location, crunch and analyze the financial criteria, inspect, and get insurance for protection—Register to Learn more about the complete process of making your money when you initially purchase the property.
