Flip and Grow Rich | Can It Really Happen?

Flipping houses can be a profitable venture, but when inflation is high, it can also present some challenges. Inflation refers to the overall increase in prices for goods and services in an economy over time. When inflation is high, the cost of materials, labor, and other expenses associated with flipping houses can also increase, making it more difficult to turn a profit. Despite these challenges, there are still opportunities for those who are savvy and strategic in their approach to flipping houses during high inflation. Here are a few tips for making the most of this market: Keep an eye on interest rates. High inflation often leads to higher interest rates, which can make it more expensive to borrow money for your flipping venture. However, if you are able to secure a low-interest loan, you may be able to offset some of the increased costs associated with high inflation. Look for undervalued properties. When inflation is high, the prices of many properties may be inflated. As a

I have been away from the blog for a long time, well it's a new year, and after sitting around for the last 10 months, I have been doing a lot of reflecting. The end of 2020 has not come soon enough, I'm sure many folks are thinking the same thing and looking forward to see what 2021 will bring.

One of the things I often think about during thanksgiving is how long it takes to cook a turkey. Not just the time in the oven (usually 6 hours for a 20 pound bird), but also the time it takes to buy it, brine it, prepare it for cooking, cooking it, and finally carving it up. Think about what the average turkey costs. I'd pin the price down to between $20 and $50 for a 20 pounder. Price will often depend on quality, for the sake of argument, lets say $20 for a 20 pound bird, that will yield enough for about 20 people (a pound per person). So essentially we are cooking for $1 per person. Thats a pretty good economic deal considering how much beef and other meats cost. Now if we were flipping that turkey, I'm sure we could get at least $2 per person for the meal. But wait, what about all the prep time and cook time? Let's back up... what if we factor in the following: Total Turkey Time Buying the turkey 1 hour Brining the turkey 1 hour Prepping for Cook 1 hour Cooking

In the Washington Post article, " The art and science of flipping a fixer-upper " a good argument can be made for diving deep into the things that make flipping a success. The article focuses on a major tenet of flipping, starting with an underdog, and ending with a star. Doing what most people would find difficult, flippers will often take a house that seems to be the worst on the block, written off by most, and with some simple but needed upgrades, increase the value dramatically.

I recently read an article from NPR that was written back in May. They discussed flipping and how it's back. I didn't actually know that it had gone away, but none the less, the article goes on to talk about a house in LA that was purchased for $390,000 and then sold for $720,000. The article didn't discuss any improvements that might have been made to the home, something that usually comes with the territory. I know that the easy flip is rare, usually you have to deal with all sorts of issues. Demo, remodel, nasty stuff left behind. Heck, some of the nasty stuff alone can cost a pretty penny when an outside firm is contracted to deal with the cleanup. I once met a flipper who had to deal with rotting food left behind by a family that wanted to make the house uninhabitable for the next tenant. Why do people do such things? Read the NPR Article. What are your flip horror stories?

Can investors successfully flip real estate in these trying times? Has the economy turned around? The answers may not be as simple as you think. In the second half of the year, markets have been shifting. Most experts agree, that with low rates, and inventory going quickly, that there's definitely a lot of energy picking up in the real estate market. I recently spoke to a local realtor in the Silicon Valley area, and he told me that more and more investors are paying cash for properties, and paying well above asking prices. This might be a good indicator that those who bought awhile ago, are now flipping their purchases to the highest bidder. What these current purchasers intend to do, I do not know. Many are also saying that this is just another bubble and will burst soon. So why tie up so much capital into real estate thats in an upswing? Do you agree? What are your thoughts on the current market, and the direction its heading toward?