What is “Home Flipping” Really?
This guide, written with the help of the experts at HomeVestors®, the largest home buyer in the U.S., is meant to familiarize new potential investors with what some people refer to as the “home flipping” process, but HomeVestors® prefers to address the professional home buying business with its challenges, benefits, and ROI.
Flipping houses is a good business, but “home flipping” generally implies a quick buck for little work when the process involves a lot of hard work, knowledge, and skill. In fact, the professional real estate investor defines “flipping” as the process of buying a distressed house below market value, increasing its worth through repairs or other means, and selling it for a high price to make back the original investment and more. ”Flipping” can involve many complicated calculations, concepts, and decisions, and failing to understand these issues can cause you to lose money on your investment.