SEK Industries claim Real Estate Investing – Is Flipping The Best Way To Get Started?
Over the last couple years our television sets have been chock full of property flipping shows that portray these individuals making outrageous profits flipping houses and making it appear easy as pie.
But is it really all so simple?
Is are all these flipping TV shows real? Are the profits really that easy to come by?
There are plenty of people out there creating a really good living flipping houses. However, the television shows on flipping are extremely deceiving when it comes to this fact of property flipping.
Is flipping property the perfect approach to begin in real estate investing?
You can decide for yourself. However, in Carl Frederic Sealey and SEK INDUSTRIES LLC estimation, for many people, particularly in the modern down markets (maybe not all markets are coming down… there are in fact some doing quite well), property flipping isn’t the ideal way to start in property investing.
Carl Frederic Sealey has explained why.
First, let’s clarify two types of flipping.
The Fix and Flip – Where you purchase property, fix it up, and market it to a retail purchaser. The sort that’s on the TV shows.
The Wholesale Flip – in which you purchase property (or buy it under contract), then locate a wholesale purchaser, and reverse the contract. The sort that’s less magnificent… but includes a whole lot of money in it… having of a lot less danger.
In Carl Frederic Sealey’s mind, the Repair and Flip method isn’t suitable for many newbie’s, although this is the sort of property investing you see on TV all the time.
Why is this the case?
You need a very good comprehension of cost of fixing up a house.
You need to have good financing, either by a private lender or a bank. (personal creditor is preferable)
You will need to have the ability to float the costs in case you cannot sell the home quickly.
Should you not calculate your prices just right, there might not be a good deal of room for error… and space for mistake means a lot more risk for you.
There are lots of people out there creating an excellent living flipping houses, however the majority of them began several years back, and have lots of flips under their belts.
They have down systems, promotion channels for accessing buyers, strong lending resources, etc.. Not to mention that new property investors may not do all the above.
However, you can find better ways to start in property investing that permit you to get in with little if any danger or cash, and will let you learn the Repair and Flip tricks of the trade before you need to make enormous money commitment to achieve that.
What is the single most effective way, in Carl Frederic Sealey opinion, to begin in property flipping to reduce your own risk and enhance your learning curve… all the while making good money in the procedure?
When you wholesale property you do everything that a flipper would normally do, except really fix the property and market it to a retail purchaser. Nevertheless, you do not have the money to risk or time commitment a repair and flipper has.
Fundamentally, you as a wholesale property flippe locate properties that require work which you are able to buy at a massive discount and reverse them for a commission to a rehabber who’ll do the job.
Your job is to discover the properties, examine the amounts to find out the repairs required, make an offer which enables both you and the rehabber you will sell to turn a profit, and market the contract to a rehabber that will make the repairs.
Another motive for starting out performing wholesale property flips is that you learn the principles of what it takes to be a rehabber. After assessing a few deals and speaking to rehabbers to learn what they search for, you are going to have a fantastic grasp on what a fantastic bargain is, the way to correctly gauge repair costs, who the rehabbers utilize as contractors, etc.
Therefore, you really make money as you’re receiving a practical instruction on property flipping and rehabbing.
There’s far more to property flipping and more property compared to TV “reality shows” show. Among the most effective ways to learn the principles would be to learn from somebody who does it regular and leaves a good living doing this.
Carl Frederic Sealey would recommend you get in touch with some real estate investors in your local area and see if you can convince one of them to mentor you.