San Francisco | The Flipside of Flipping Houses | Mortgage residential and commercial home loans SF

San Francisco | The Flipside of Flipping Houses | Mortgage residential and commercial home loans SF

Television programming and infomercials of all styles will have you believe that flipping houses is a fun and fascinating way to turn a serious profit in real estate. It is just that, though it is also so much more. There is a lot of money that can be made by flipping houses (buying homes in various states of neglect or disrepair, making the repairs, and then selling for a sizeable profit) by the right professionals. However, there is a massive amount of work that is actually involved in the process of making that money.

San Francisco | The Flipside of Flipping Houses | Mortgage residential and commercial home loans SF

San Francisco | The Flipside of Flipping Houses | Mortgage residential and commercial home loans SF

The sheer volume of work, the time consumption, the sleepless nights and days, and the sometimes disgusting chores that must be done in order to get a run down property in sellable conditions is often glossed over on these television shows for various reasons-most of all the reason that the average Joe sitting at home wants to believe that he too can do this kind of work for quick profits and these images are not conducive to that illusion. In other words, this is a tough racket no matter how easy they attempt to make it seem.

Poor planning is the bane of a property flipper’s existence. In order to have a successful flip (and by that I mean maximum profit-minimum investment not any profit at all) you must carefully create a plan of action and implement that plan as quickly and cost effectively as possible. You must also realize that there are likely to be rain delays, hiccups, and disasters along the way. Proper planning can eliminate some of the disasters that may occur but it will not eliminate every conceivable possibility that will come along. More importantly than anything else however, proper planning can limit these occurrences as well as their severity to the overall time schedule and budget.

San Francisco | The Flipside of Flipping Houses | Mortgage residential and commercial home loans SF

San Francisco | The Flipside of Flipping Houses | Mortgage residential and commercial home loans SF

Another important thing, which falls under proper planning, is having a proper inspection done. The importance of this step cannot be stressed enough. Knowing the problems and potential problems that exist in a property can help you create a workable timetable and budget for the property flip. This also notifies you of potential problems you may encounter along the way. The television shows that deal with this week in and out often leave out this oh so important step and many would be investors find themselves investing in a money pit rather than a home that has potential to turn the quick profits they are hoping for.

You should make every effort to insure that your first flip is a simple cosmetic flip (this is something that a good inspector can assist with). In fact, this should be the case for your first few flips and then you can move on to more substantial flips that involve more work. The reason is simple-while the profits will be somewhat smaller on these cosmetic flips it gives you, as the investor, the opportunity to learn to budget, set timetables, and live within those budgets and timetables. This is where most investors go astray when taking on projects that are above their means. A house flip is no small endeavor and there is a lot of money to be lost along the way when this particular real estate investment doesn’t pan out. Start small and ignore the dollar signs in your eyes, then work up to more extensive projects.

San Francisco | The Flipside of Flipping Houses | Mortgage residential and commercial home loans SF

San Francisco | The Flipside of Flipping Houses | Mortgage residential and commercial home loans SF

Another pitfall that many investors make is not catering to the audience they are hoping to attract in the property being flipped. A bachelor’s pad does not need 3 or 4 bedrooms. At the same time, a family home typically needs at least 3 if not 4 or more bedrooms. Other considerations should be fenced in yards, landscaping, and maintenance requirements. Low maintenance lawns are in high demand these days particularly low maintenance lawns that appear to be well landscaped.

Keep these things in mind when flipping your real estate and you should see some degree of success-just remember, the rewards when you are doing things you never thought you would be doing during the process.

San Francisco | The Flipside of Flipping Houses | Mortgage residential and commercial home loans SF

San Francisco | The Flipside of Flipping Houses | Mortgage residential and commercial home loans SF

Powered by Agent San Francisco – SF San Francisco. All rights reserved.© 2012 Copyright by Agent San Francisco™. All rights reserved. Agent San Francisco is an independent real estate brokerage.
“Agent San Francisco real estate brokerage” is an independent real estate brokerage firm with CaBRE – California Bureau of Real Estate Lic #01173770 and Mortgage Loan Originator MLO – NMLS ID: #1203203 & NMLS ID: #1425778 – Agent San Francisco is equal opportunity housing mortgage broker and
real estate agent that abides by all California Bureau of Real Estate rules and regulations. Agent San Francisco Mortgage Loan originators MLO’s and advertising are in compliance with FTC, U.S. Department of Housing & Urban Development (HUD), Regulation Z [12 CFR §1026.24], Reg CaBRE, Mortgage Acts and Practices — Advertising rule, known as Regulation N – [12 Code of Federal Regulation §§1014 et seq.] – The Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB).
Licensed and endorsed under California Bureau of Real Estate. (CaBRE)
CaBRE Broker #01173770
Mortgage Loan Originator (MLO) NMLS ID #1425778
Mortgage Loan Originator NMLS ID #1203203
Searches related to residential home and commercial real estate lenders San Francisco
residential home and commercial real estate loans San Francisco
San Francisco residential home refinance and commercial real estate lenders list
largest residential home refinance and commercial real estate lenders San Francisco
residential home refinance and commercial real estate funding San Francisco
residential home refinance and commercial real estate financing San Francisco
residential home refinance and commercial mortgage lenders San Francisco
residential home refinance and business real estate lenders San Francisco
residential home refinance and private commercial real estate lenders San Francisco
Home purchase loans and refinancing

Agent San Francisco Real Estate SF

Agent San Francisco Real Estate SF
Agent San Francisco Real Estate SF

Licensed real estate broker CaBRE #01173770 | NMLS 1425778 & 1203203 | 415-796-0086 | www.agentsanfrancisco.com

Facebooktwittergoogle_plusredditpinterestlinkedintumblrmail
rssyoutubevimeoinstagramflickrfoursquare