The emergence of the cable television networks has created worlds of new programming that needs new material. One of the more popular types of cable television programs are the shows that deal with flipping houses. On these shows, an expert buys a distressed home, fixes it up, and then tries to sell it for a profit. House flipping can look really easy when condensed down into a one-hour show, but it has its pros and cons like anything else.
You Can Make Money
It is possible to make money, and even make a living, flipping houses. As more people start doing it because of the cable television shows, finding properties has become more competitive. But if you know what you are doing, it is possible to flip a house for a profit.
You Make A Neighborhood Nicer
Sometimes they will ask the flippers on television why they flip homes and one answer they give is because it helps to rehabilitate a part of a neighborhood. Whether they mean it or not, that answer is very legitimate. When you buy a distressed home and fix it up to resell, you are putting a beautiful property into a neighborhood that is owned by a proud homeowner.
You Will Be In The Real Estate Industry
In 2008, the real estate industry experienced a significant realignment of property values that was years in the making. Every once in a while, this sort of correction is necessary to keep the industry from getting too inflated. But for the most part, the real estate industry is one of the most stable investments you can make and you should be able to make a nice career out of flipping houses.
It Is A Lot More Complicated Than It Looks
The hour-long television shows leave out holding costs, properties that never sell, and a lot of regulatory considerations that are all regular parts of flipping houses. You should never just jump into flipping houses without first working for a contractor or an investor so you can learn the ropes.
You Could Lose Everything
You think you have found the right property, you invest everything you have, and then the property never sells. This story is more common in the real world of flipping houses than stories about properties that sell for a profit. It is important to ease your way into house flipping and avoid losing everything on one deal. You need to become a good judge of properties, and you need to understand your market place if you want to succeed.
It Is Hard Work
Most entrepreneurs are not afraid of hard work, but flipping houses can be the most hard work you have ever done in your life. Most flippers try to do as much of the work themselves as possible, and that means long hours and a lot of back pain. If the idea of putting in 60 to 80 hours a week of hard work to make sure your investment comes through is not for you, then house flipping might be something to avoid.
After watching a few episodes of your favorite house flipping show on cable television, you might feel fully qualified to give it a try for yourself. But before you try your hand at becoming a real estate investor, you might want to weigh the pros and cons of house flipping in the real world instead of counting on life to work out like cable television.