When I talk about how to flip a house, or when I tell stories about some of the crazy things we’ve gotten into when flipping, my friends give me some weird looks! Some of them get really freaked out when I tell them that we had live chickens running around at one flip or about the gross smells we sometimes encounter. Some of them don’t like the idea of getting into such a risky business, and some of them are interested but want a more hands-free option for investing. These kinds of real estate business conversations always get me thinking about how big the world of real estate investment is and how many ways you can get involved.
House flipping isn’t for everyone, but that doesn’t mean you can’t take advantage of an amazing way to invest your money and see a lot of passive income in a very short amount of time. That’s why I want to discuss how to choose your role as a real estate investor and how to tell if you’ve chosen the right route for your personality, your work style, and your wallet.
If you want to be a house flipper, you have to be really interested in learning about real estate, construction, and home improvements. You have to be ready to get your hands dirty with the demolition process, and you have to be willing to get involved in the projects that don’t necessarily need to be done by the professionals.
You also have to have an eye for design, and you have to be able to visualize what a rundown flip will look like when your crew is done putting in all the new changes and repairs you order. Without that, you’re not going to be able to rehab your houses effectively.
If house flipping isn’t your thing, that doesn’t mean you can’t get into the real estate business. Are you good at finding great deals? Would you be interested in buying houses at really low prices and then selling them to other real estate investors for a profit? That’s what wholesalers do. If you aren’t sure about all the work that goes into flipping, this might be the best path for you.
On the other hand, if you want to keep your hands clean, but you want to make more profits than you could with wholesaling, you might want to consider becoming an investing partner. You’ll need to know how to network (and how to tell if you’ve found good people to work with on flipping houses), and you’ll need to have a good deal of liquid capital available. If you can meet those two requirements, you’ll have everything you need to put in the investment capital on a flip while your partners put in their sweat equity. Then, when they sell, you get half the profits.
If you’re still not sure where you fit into the real estate business or you’re interested in the tricks and secrets that will help you learn how to flip a house more effectively, you should really check out one of our Success Path Education seminars. Tarek and I love helping new investors and entrepreneurs get started and get their flipping businesses off the ground, and we host seminars all over the country. If you want to know all there is to know about real estate investment and house flipping, you really owe it to yourself to come see what you can learn from Success Path.