10 Reasons Why Real Estate Investing Through House Flipping Can Be a Good Business
Investing in real estate by flipping houses is defined as the process of buying a home, rehabbing it, and then selling it for a (hopefully) profit, within a short period of time. You may have given thought to undertaking house flipping yourself. Here are 9 reasons why house flipping may be a good business option for you.
Work from Home
An important benefit of house flipping is the fact that you can work from your own home. And who doesn’t like to work from home? You have to be careful with your time, though: activity doesn’t always equal productivity.
While you need the financial resources necessary to purchase and rehab real estate, this business does not need much overhead. Office rent? No. Staff salary? Not really.
Real Estate Boss
Many people dream of finding a way to earn a living so they can be their own boss. Another of the key benefits associated with flipping houses is that you truly are your own boss. You decide what, when and where to buy. The extent of the design renovation, subject to a budget, is all up to you.
When it comes to a house flipping business, you really never do have anyone to whom you need to answer. You do need to work with an array of different types of professionals, sometimes a real estate agent to find properties, a general contractor, a good CPA and an attorney to protect you, if and when necessary. However, there just isn’t anyone you will encounter in the process of pursuing house flipping who would end up in a managerial position over you.
Reasonable Start-Up Costs
Many businesses need significant start-up costs but not flipping houses. You will need enough to buy and rehab the home but not much else. Some of the startup costs are: an attorney to draw up any organizational documents (usually, an LLC), signs to place around the neighborhood you’re targeting and business cards.
No Equipment Investment
Many new ventures require that a significant investment be made in equipment. Not with flipping houses, though. You literally need no equipment whatsoever to make your first property purchase.
for sale once you purchase it, and plan to do the renovation yourself, you will need some tools. And if you do, you probably have the necessary tools or easy access to them.
No Degree Required to Invest in Real Estate
House flipping is a professional endeavor that doesn’t require any particular type of educational background. While having some experience in rehabbing a home can be helpful, a person most definitely does not need to spend the time and money to sit for a degree or certification to invest in real estate.
Benefits a Neighborhood
Another reason why house flipping can be a good business extends beyond a person who embarks on that type of business. House flipping can prove beneficial to a particular neighborhood. House flipping nearly always involves rehabilitation done to a property. This process can positively impact the overall look and feel of a neighborhood.
Increases Neighborhood Market Values
The rehab process typically associated with the house flipping process can also contribute to raising the value of surrounding real estate properties. When houses in a neighborhood are rehabbed and improved, that process oftentimes increases the value of other properties in the neighborhood. When a flipped house sells for a dollar amount higher than what would exist absent the presale rehab, that also contributes to a potential increase in the market value of surrounding comparable properties.
Real Estate a Path to Riches
Finally, a true benefit associated with house flipping as a business is that it provides an opportunity to make money. You’ll feel a sense of accomplishment every time you buy, rehab, and flip a house. You turn your vision into reality. Indeed, many people who flip houses maintain that they find the entire process highly gratifying.
If you are interested in house flipping, a first step you may want to consider is visiting with other people who’ve pursued this type of business themselves. You can learn a great deal about the pros and cons associated with house flipping. You can also gain insights about what you need to do to lay the foundation for a successful house flipping business.