I hear it all the time. I would love to get into real estate investing but prices are just too high right now. Or I would love to flip a house, but there is too much competition. Another one is, if I am going to flip a house I would only consider it if I was going to make 50,000.00 or more. Hand to my heart…these are all things I have heard. I hear them in real estate investment meetings, from the audience when I participate on panels with other real estate investors, and from people who want to sit down and talk about business and the housing market.
While I respectfully understand the thought process behind this, as someone who has been investing for 10+ years, I do not agree.
How does the market impact your business?
Though I was fortunate and did not suffer losses like many during the market crash, I have also taken a very different track with my business that has been more conservative. The market is only a small part of what can cause your real estate business to collapse. I have seen many people, some whom I greatly admired, go from successfully flipping houses leap into new construction and go bankrupt within 24 months. All of this, while the real estate market was “strong”.
If you get started with investing in that first flip right by the time the market shifts in a year, or 3 years from now, you will have an established track record of buying, renovating and selling homes that others who wait will not have. What does that mean? It means lenders will view you as experienced and when there are more homes to be purchased at a lower price you will be positioned to move forward while others sit on the sidelines.
What else does it mean?
If you take on that first flip and then decide you want to build a rental portfolio guess what??? Lenders will look favorably on you especially if you have built strong credit or saved the proceeds from your house flips to make a down payment on a property.
Are deals harder to come by right now?
Sure, for some. But you have to remember, I was here, in this business in 2007-2011 and guess what??? Even when houses were $25,000.00 they had multiple offers. Buy smart, follow your budget and just begin. Build your skills and establish relationships that you can take with you into the next cycle of opportunity.
Day one or one day….the decision is yours.
So you’ve purchased a house to flip. Now what?
Want to buy a property and renovate it?
I have a freebie checklist that will help you — 8 Things I look for When Purchasing a Home. Just click here to download it.
Love before and afters?
For more inspiration for home renovations, follow me on Pinterest @thresholdhomesmn