No not literally..
That would be a bit strange. Flipping a property is about fixing up real estate, you basically buy a property, renovate it, and sell it. However, even though a lot of people think that this is easy money, it can be challenging to find a good property, renovate it in the right way and find buyers for it.
Basically there are two types of flipping; the first one is simply buying a property, wait for the market price to go up, and sell the property at the right moment to make money.
The other one is a bit harder and is not only reselling the house, but also renovating the property. In this way you can ask a higher price for it, even if the market doesn't change! I know this sounds very appealing, as properties gain quite some value after a renovation. But flipping houses isn't suited for everyone.
First of all, it is very time consuming, fixing up a house isn't so easy and it usually takes quite some time. Therefore it is important to not do this whole process alone. Look for a partner that shares your interest and vision on investing in real estate, additionally would it be perfect to look for a partner that has an important talent that you are missing. Then, for all the hard work you could hire experts, but this will also cost you extra money. So, when you can do it yourself, when you can't hire someone can do it for you!
Secondly, a bit of experience could come in handy when looking for properties that could gain value very quickly. It can be hard to do this when you don't have that bit experience and you could end up losing money because of that. Because of this you should always be very careful when investing such a big amount of money in a property.
Research has shown that on average, flipping a house takes about 4 to 6 months, not to be underrated!
The average profit experienced house flippers see is 20-33% of the after repair value. This means a house flipper earns easily 10k to 50k per month! However, of course they always try to increase this.
Some extra tips
An important rule that a lot of property flippers are using is the 70% rule. This rule allows you to only buy a property when the price is under 70% of the price you are going to ask for it after renovating. This leaves you with a 30% gap to repair the house and make it a profitable investment.
Another very important thing a lot of beginners do wrong is not writing a business plan and not managing all the costs on beforehand. When you do this you minimise the change that the investment is gonna cost more than you thought and you wont loose money this way.
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