Leave The Rehabbing To The Experts

Dated: 10/28/2014

Views: 666

Between the 2008-2013, I operated my company, New Castle Properties, LLC in the real estate investment industry, by “flipping homes.”  Although, I dislike this term, it’s what most people relate to thanks to HGTV.  I can’t tell you how many people said to me, “I’ve always wanted to do that, I see it on TV all the time.”  Be careful people, it’s not for the faint of heart.  There is a large amount of risk involved, with most issues out of your control.  

Here are some of the significant differences that I saw between real life “flipping” and the TV shows.  First of all, the people on TV never stick to their budget.  Oh, we need a new roof now, okay, we’ll just add it to the top.  Upgraded cabinets? Sure! They should have known the condition of the roof prior to purchasing as well as cabinet costs.  Secondly, the comps don’t typically rise over the period that you are rehabbing, and certainly not enough to cover your hidden costs.  Maybe it occurs in California on TV, but not for me, I’m in Kansas City.  Lastly, the TV shows don’t ever go into the unknown side of flipping such as obtaining proper insurance for your company, requiring all contractors to carry general liability and workers comp insurance.  Dive into the numbers side of business instead of the cosmetic.  I guess that wouldn’t make for good TV ratings though.
Do yourself a favor and let the pros do the house flipping, it could end up costing you more than you’ll ever know.  Just keep watching on TV and enjoy the process while someone else’s money is at risk.
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Sue H. Edwards

Sue specializes in both listing and selling with an array of Real Estate services and with the expertise necessary to assist clients as they realize their real estate goals. She prides herself on put....

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