QUOTE (BenSanderson @ May 12 2009, 04:28 AM) Thanks for the great ideas, Thomas!
The whole `flipping` concept has rolled around in the back of my mind for a while now and may end up being something I seriously consider as a primary source of income to fund further investments. The beauty of this business is that the skills I learn through renovation and resale will undoubtedly help me in other aspects of RE Investing.
I know that flipping isn`t the core focus of REIN, but I suppose there are plenty of members who do have useful information regarding the subject.
I just have to become a REIN member!
Ben
Hi Ben!
Welcome to the exciting world of real estate. You are about to embark on a very exciting journey.
You stated in one of your posts: "I ABSOLUTELY DO WANT TO JOIN REIN! However, my wonderful wife has seen me get very excited about a variety of things in the past that have fizzled, so she is a bit skeptical still..."
What struck me was the part about excitement fizzling. You mentioned you are a graphic designer... it sounds like you are the artistic and creative type who may need variety in his daily routine to keep things exciting and interesting. House flipping often sounds very exciting to most people but once they get into the thick of it they can very quickly lose steam. Flipping is all about timing: get in, get it done properly, get out -- QUICKLY! Most first timers take way to much time finishing a flip if they ever finish it. Most seem to treat it as an artist endeavor trying to create a masterpiece and often spending more money than they should. Others don`t have the focus and motivation to get into the property at 7 or 7:30 am and work until 8 pm. Trust me, if you are doing all the work yourself, you will have to put in long productive days.
If your excitement fizzles quickly you really have to ask yourself some very tough questions before taking the plunge into house flipping and be truly honest with your answers. Ask your wife to be brutally honest with you as well. Ask yourself:
Will I beable to stay focused on the project?
Will I beable to stay motivated and enthusiastic?
Will I beable to go to the property day in day out until it is done -- NO PROCRASTINATING?
Will I beable to stay objective and separate my personal tastes and wants from what the market expects/can bear? (As I mentioned before, one of the biggest mistakes first time flippers make is going to high end on a property in a market/area that can`t bear the price)
Am I really as handy as I think I am? Will it take me three days to do something it would take a professional one day to do? (This is another mistake many handy first timers make. Yes, they are handy but they may not beable to perform the task as quickly and as well as a professional -- Time is $$.)
Do I have a team of reliable and knowledgable contractors I trust to do the jobs I am not qualified to do ie. complicated electrical & plumbing etc.?
Do I understand the difference between a cosmetic flip and a full blown renovation?
Do I have enough knowledge on local building regulations? Do I know enough to know when I need to pull a building or development permit? (This usually applies to large renovations)
If I will be using contractors, do I have enough knowledge to know if they are doing things properly and to code? (Trust me, it can be very costly if the property is inspected and it is found that things were not done to code)
Am I willing to dedicate the time and effort to source the best products at the best price? (You will want to establish accounts with wholesalers. You won`t make much money buying your supplies retail at the local hardware store)
Anyway, those are just a few questions. Just be really honest with yourself especially when you ask yourself if you will beable to remain enthusiastic and motivated even when things become difficult because trust me it always does.
I always caution people on doing a flip for sale with no experience. Maybe experiment first with a property that you can renovate to rent.
Whatever you choose, I wish you much success and hope you enjoy every part of the learning process.
You already have a winning combination: An enterpreneurial spirit, creativity and a supportive spouse. If you can maintain the enthusiasm and focus on your real estate you are sure to achieve great success.
