You need to buy houses incredibly cheap to make money. The other issue that many new flippers will find overwhelming is finding the deals that will work to flip. They will charge close to 10% for the money, which can add $10,000 to $15,000 to the costs. They find flipping too risky, so you may need to find private money or a hard-money lender. If you need a loan to flip the house, most banks will not lend to you.
Most people do not have $260,000 laying around to flip a house and will need to use financing. If you are buying this house with cash, you will need at least $260,000 to do the deal. There will also be selling costs that we will talk about, but you most likely will not need to pay those out of pocket. Most people will be paying insurance, taxes, utilities, HOAs, yard maintenance, and more while they own the house. The repair costs and the purchase price are easy to figure out, but most shows leave out the carrying costs. If you purchase a $200,000 house to flip, here is a rough example of how much money you will need: It takes a lot of money to flip a house, and the house flipping shows tend to say nothing about that part of the business. I have up to 22 flips going at once, and repairing that many properties is not easy! Finding the people to repair them is not easy either, but that is not the hardest part of flipping houses.įor someone looking to get started with flipping, there are two more important aspects to the business. I would agree with most of the house flipping shows when they say repairing houses is one of the hardest parts of the business. What is the hardest thing about flipping houses? Zombie House Flipping seemed to have a pipe break in every single episode! On some shows, I have my concerns that things are even faked to create more drama. I cannot blame the house flipping shows for producing what people want to watch, but most of the business is not shown or even discussed on these shows.
While we usually get a great look at the rehabbing process, which has the most drama, the flipping shows tend to leave out the most important part of flipping, which is finding awesome deals and financing them. There is plenty of drama and conflict when flipping and dealing with contractors. However, television likes to show conflict and drama.
House flipping shows advertise themselves as an in-depth look at how the house flipping business works. But how realistic are house flipping television shows in the first place? How much real-life information are we getting? I have interviewed myself for a few shows, but in the end, I was not chosen, which is probably a good thing considering I do not have a lot of spare time! In those interviews, I could tell exactly what they want for their flipping shows: a family team, someone who works on the houses, and someone who is willing to stretch the truth on what actually happens. Some of the shows I enjoy, and some of the shows are a little over the top, but they all have one thing in common: television house flipping shows are a very bad portrayal of what it is really like to flip houses! Not only are they not accurate at portraying what it is like to flip houses, but they also teach some really bad lessons. Some might think house flipping shows are educational, but in many cases, I think the shows do more harm than good for people who are trying to learn about flipping. In most cases, I get very frustrated because I know what they are producing is not realistic and nothing like flipping in the real world. I flip a lot of houses (20 to 30 a year), and once in a while, I find myself watching a house-flipping show on television.
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