Learn To Flip Houses In 2 Hours
Flipping became a widely used term back in the late 1990s when real estate investment took off and televisions shows started popping up to show the average person off the street how they could make a fast buck with simple home improvement projects. In the last few years, I've had several people tell me how easy it is to "flip" a home, although none of them have actually done it. Flipping as a true income source is not easy.
How long did it take you to learn your current job? When I worked at QFC, I had to let a couple of employees go because they couldn't learn the science of stocking shelves. When I worked at Burger King, I had to learn just the right amount of ketchup and mustard to put on which burger so they were standardized. EVERY job takes time to learn and succeed. I bring this up because I heard an ad on the radio that promises to teach you how to flip homes in a two hour seminar. What I'm guessing they will teach you is how to invest a few hundred bucks on some software or other informational supplements proving that you can get rich quick - by holding seminars and charging folks a mint to jump on a flipping real estate band wagon.
In all seriousness, these get rich quick guys are not telling you about the laws and regulations that could get you into trouble. Last time I checked, Washington state will fine anyone "flipping" homes without a license $10,000 each and will go back in time to every home you've done. This is consumer protection because of all of the people who saw the show on TV and didn't have the knowledge to do things properly. You do have to file this income on your taxes, and it will be documented by the escrow company.
They also don't tell you that to find a deal, the competition is fierce and you will probably take a few months and write up offers on 15 - 20 homes before you get one accepted.
They don't tell you that if you hire a contractor - even your brother in law - they could run off with your cash, do a half-a**ed job, or possibly cause more damage which costs you thousands. I know this because I have purchased homes from failed flips at about half of the original list price.
They don't teach you the history of the market and how to predict up coming changes which will effect your price tag when you get ready to sell. Or how timing will cost you in loan payments and commissions depending on when you are marketed. And they don't bring up the amount of higher interest you will pay because it is an investment and not your primary residence.
If it is your primary residence, they don't tell you how you get really tired of living in a dusty mess and move stuff around while not being able to relax in your own decor because everything has to be neutral to sell it....
Should I go on...?
Flipping is not done in two hours of a seminar or a half hour TV show. It is work. It takes a lot of preparation. My 30 day flip schedule is INTENSE and I've had 3 contractors fail at trying to keep to it the way I do. It takes serious dedication to be in and out of an ugly home. I work 6 days per week and 10 hours per day to make it happen. I only mentor the best of the best - I don't feed off the public by offering 2 hour seminars....
Moral of the story: buyer beware!
I have relied on referral business for over 20 years.
Although Harken Realty is based in Everett, and I prefer to work from Seattle to Arlington,