The real world isn’t a scripted 22 minute HGTV show. Finding the ideal home to flip doesn’t just happen, major problems aren’t dodged in minutes and money and labor doesn’t magically appear. The process more resembles a game of whack a mole in a blacked put room with flashing strobe lights. Rookies are particularly prone to disaster; these “HGTV Rangers” confuse the scripted shows with the real world. They fail to embrace the “buyer beware” mandate required to avoid disaster. Most also fail to properly qualify their agent or even go it alone, resulting in errors that compound the potential for disaster. In short, they “don’t know what they don’t know”.
However, every once in a while a true diamond in the rough pops out of the mud. We recently had this home for sale in Roswell, GA; the ideal home to flip, especially for beginners. On the investor desirability list, this one hit all of the key ones:
Ideal location – highly desirable area and community with little quality inventory
Highly desirable design & quality – a three sides brick ranch with extra bedroom and full bath up, roof 5+- yrs old, step-less from the garage to the interior and around the home
Very appealing lot – almost half an acre, flat, private and fenced. No adverse external factors, deep inside the community with no traffic
Great price point – as repaired value will be in the mid-upper 400’s; an exceptionally competitive and affordable price point for this area
Easy required work – the home was visually challenging but once cleaned out, the work was largely cosmetic
Have a look at this video. When you look past the contents in the home and the other “long tailed residents” in there, it’s clear that the work involved is the kind that investors love to see – the high return cosmetic and finish work.
The hardest step for new investors is commitment; confidently laying that pile of cash on the table. Like everything in life, preparation and execution is the difference. There will be unexpected hiccups, but with proper preparation they can be mitigated or controlled. Above all, understand that “flipping” IS NOT something to take lightly, HGTV is not the real world.
Questions? We’ve completed thousands of foreclosure appraisals (including several years worth during the crash) and are happy to chat about finding the ideal home to flip. Here are a few foreclosure videos, take a look at the real world. Call or email anytime….