Flipping real estate is for those who are tired of flipping burgers for peanuts. Property, they say, is what really separates us from the rest of the animal kingdom. Those who own property have moved so far up the food chain, as to leave the rest fighting for crumbs and day old, cold French fries. So, what is it, this house flipping? Typically, it is buying and selling a house, with a rapid renovation as the important filling between those transactions. Speed is of the essence, when flipping for profit; and knowing, just, what you are doing, when renovating the property.
Flips Can Flop
If you cannot resell the house for more than it cost to purchase, renovate and hold onto it, your flip will have flopped. The popularity of TV shows like The Block has fuelled a passion for flipping within the community. Watching something on a reality TV program can be a lot easier than actually doing it yourself. Fool’s gold comes to mind, as a metaphor for the kind of bullet proof belief that many youthful aspirants have when it comes to flipping real estate in Australia.
Professional Planning and Strategy
To flip real estate for profit, like a pro, takes professional planning and strategy. Getting in cheap is the first hurdle to surmount. However, if the renovation costs blow out, then, you are, also, sunk. Perhaps, you can diversify income sources in the same industry, to ensure that you know how to walk the talk. Flipping, often, appeals to builders and tradies, because they know how to do a successful makeover and are connected in the industry to boot. Things like, knowing how to remove building waste quickly, can be gold, when it comes to renovating.
Timing is Everything in Life
Flipping, like everything in life, is all about timing. You might be the best makeover specialist or manager of that process, and, yet, if the market is running against you, it is a very steep hill to climb. Live well, if you can, because flipping real estate can be stressful, personally and for your family. Don’t cut too many corners or you will end up with a round house. Have a budget and stick to it, when it comes to the renovation; and make sure you have thoroughly investigated the state of the property before you buy it. Do your due diligence at the outset.