If you’ve ever had the pleasure of watching HGTV, you may be familiar with house flipping. Essentially, house flipping is a real estate investment method in which investors purchase an undervalued property, renovate it, and sell it for a profit in a short period of time. With a thorough business plan and the right strategy, house flipping can become the most profitable investment of your lifetime.
Investors can get started in the house flipping industry with relatively low start-up costs and earn a hefty return on investment without a degree or license. This real estate investment strategy empowers investors with the flexibility and uncapped earning potential that comes with owning a business while also improving the community at large. So what are you waiting for? Read on to learn more about why you must start flipping houses today.
1. House Flipping Has a High ROI
Most real estate investors’ initial interest in flipping houses arises when they learn about the high potential return on investment (ROI). Reports from ATTOM Data Solutions state that the average high-flipping project earns investors an astonishing $73,766. Keep in mind that this figure is the average. House flippers that fail to take on this endeavor with a clear strategy may lose money, while high-end house flippers can earn $500,000 or more.
While the high-end house flippers increase this average figure, they can be challenging to sell. The most reliable ROI can be found in middle to upper-middle-class neighborhoods, with profits ranging from $40,000 to $70,000. Although upper-middle houses don’t earn as high of a profit as the high-end houses, they sell much faster. While a high-end home may take a year to sell, an upper-middle house will only take a few months. Ensure that you perform adequate research, and choose the right investment properties for a profitable outcome.
2. You Will Enjoy the Flexible Work Hours
When most investors begin flipping houses, they have another source of income, such as a 9 to 5 job, that they rely on to fund their new business. Of course, it can be challenging to build a house flipping business while managing your day job, but real estate investors will benefit greatly from the flexible work hours that house flipping allows. However, you’ll need to implement processes to streamline your workflow to earn the highest profit possible in the shortest amount of time.
Finding properties suitable for house flipping will take up most of your time, but you can reduce your workload by partnering with a team of professional cold callers. They’ll handle the hard work of sifting through leads and sending qualified leads your way, so your sales team can close the deal. You can also reduce your work hours by hiring an assistant to handle administrative tasks and a general contractor to handle project management on the construction site.
3. You Can Reap the Benefits of Owning a Business
As your company expands, you will have the financial resources and staff to quit your day job and run your company full-time. Becoming your own boss means that you have the power to set your preferred work schedule, choose projects that excite you, and earn an unlimited amount of money. When you own a profitable house-flipping business, there are no limits on all you can achieve.
Ensure you have a solid business plan before abandoning your 9 to 5. This plan will guide you throughout your journey so that you are not blindsided as the company expands. With the right business plan, you can discern whether or not your current revenue model is sustainable. If you seek a business loan in the future, a business plan will demonstrate to lenders that you can manage the funds they give you.
4. You Can Get Started Without a License or Degree
Unlike most lucrative investment opportunities, flipping houses requires no special licenses, certifications, or degrees. All you’ll need to get started is the funds to purchase and renovate a property. Some investors prefer to buy the property outright, while others finance the property. If you choose to finance the property, ensure that you factor in the monthly payments when calculating your renovation costs.
While a real estate license isn’t a requirement to flip houses, there are some benefits to obtaining a license. A real estate license will open the door for greater opportunities on your investment journey. When studying for a real estate license, you will learn all the details about purchasing and selling a home in addition to common real estate industry jargon. Furthermore, a real estate license enables you to access Multiple Listing Service (MLS). IF you choose to represent yourself when selling the property by acting as your own listing agent, you will save anywhere from $5,056 to $7,584 per sale.
5. You Will Enhance the Entire Community
Not only is house flipping profitable for investors, but it also enhances the entire community. Most of the properties that investors renovate are in such terrible condition that they discourage people from moving to the neighborhood or investing in new business developments that add value to the community. Business-savvy house flippers turn broken-down houses into livable residences, providing desirable homes for families.
When the houses in a neighborhood improve, so does every other development within the community. Potential buyers will move into their new homes and support surrounding businesses that stimulate the local economy. When money begins to flow throughout the neighborhood, schools, roads, and overall safety will also improve. As you can see, house flipping is a wonderful way for investors to earn a profit while elevating their community.
Start Flipping Houses with Call Motivated Sellers
Are you ready to start flipping houses? To start building your network, acquiring properties for your portfolio, and turning a profit, enlist the assistance of Call Motivated Sellers.
Our team of professional cold callers saves you time and effort by vetting leads for your team. Informing interested buyers and sellers about your house flipping company, we’ll use our expertise to warm up leads, find the best prospects, and set your sales team up for success. With cold callers on your side, you can leave the hard work of lead generation to us and focus on other aspects of your business.
Call Motivated Sellers is an American-based real estate cold calling service that can help raise your sales and provide hot leads year-round. We have years of experience cold calling in the real estate industry, along with access to the best information for buyers, sellers, and agents to help you close more deals.
If you’re ready to leverage the power of cold calling for your house flipping business, Call Motivated Sellers is here to help. To learn more about the services we offer, just contact our team today!