Flipping a home looks simple when you watch professionals do it on television. Many people do not realize how difficult flipping a house really is. The guide below walks you through a few things the reality television shows don't show you about flipping a home.
Purchasing a Home that Needs to be Flipped Is Not as Easy as It Seems
Unless you have cash in hand for a home, purchasing a home that is in as bad condition as many of the homes that are seen on the shows can be very difficult. Most lenders will not give you a loan for a home that is not deemed to be habitable. Habitable means livable. It means that someone can move into it without it being a total health or safety risk for them. Lending you money to purchase a home that is not habitable proves a huge risk to lenders because it will cost so much for you to flip it to turn it into a livable space.
Flipping Comes with Many Hiccups Along the Way
Flipping a house does not go as smoothly as the television shows lead you to believe. A lot of issues arise along the way with flipping and they are often not shown on television. Many shows just show you the final inspection that takes place, but there are numerous inspections that must take place before, during, and after the flip is done. The home inspections are important because they are needed in order to get the permits that are necessary to do the flip.
Television Shows Don't Show the Permit Process
There is a long process that comes with filing for your permits to do a flip. You need to get permission from the county where the home is located and may even need to get permission from the housing association for the neighborhood. Flipping takes a long time because, when you finish one portion of the flip, you have to wait for inspections and permits before you can start on the next portion of the flip.
Flipping is costly and time consuming. It is important to take the time to find out what flipping really entails before getting into the field rather than just trusting what you see on television. Flipping can be very profitable if you can purchase the home for a low price, do affordable changes to the home, and sell it for much more than you have put into it.