Flipping Houses For Dummies^®, 3rd Edition

      Published by: John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, www.wiley.com

      Copyright © 2017 by John Wiley & Sons, Inc., Hoboken, New Jersey

      Published simultaneously in Canada

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      Library of Congress Control Number: 2017934019

      ISBN 978-1-119-36307-1 (pbk); ISBN 978-1-119-36311-8 (ebk); ISBN 978-1-119-36310-1 (ebk)

      Introduction

      Maybe you know somebody who buys and sells houses and makes as much money on a single transaction as you make in a year. Or perhaps you caught an episode of one of those house flipping TV shows that demonstrate just how easy it is to buy a house for $250,000, fix it up for another $75,000, and sell it for a half million bucks in a matter of days. Now, you want in on the action. You want your slice of that capitalistic cannoli.

      But where do you start? You can’t imagine where you’d be able to get your mitts on the cash you’d need to finance a flip. You have no idea where to start looking for undervalued properties, and even if you could find a suitable house to flip, your expertise in the field of home repairs is limited to plunging the toilet. Surely you’re not qualified to invest in the complicated world of real estate.

      Well, it’s time to stop all the negative self-talk and start reading Flipping Houses For Dummies. I started out with $900 that my grandmother gave me in the early 1970s. From the ripe old age of 19 to the present day, I’ve flipped one house after another and earned millions of dollars along the way. It wasn’t easy. Some of my flips flopped. I didn’t profit from every transaction. I did, however, have a plan in place and the sticktoitism (pronounced stick-to-it-ism) to successfully execute it. By following through, I was able to succeed, and so can you. (By the way, sticktoitism describes the determination and dogged perseverance required to build wealth in real estate. I could use stick-to-itiveness, which actually appears in the dictionary, but I like my word better.)

      Unlike other books, TV shows, and late-night-TV gurus, this book doesn’t promise an easy, risk-free way to score quick cash by flipping houses. Instead, it takes an honest look at the practice of flipping houses.

      In this book, I reveal what I’ve learned in more than 40 years of flipping houses and working with buyers, sellers, and other real estate investors and professionals. I show you how to do everything from building a team and securing the cash you need to finance your venture to finding undervalued homes and negotiating the price and terms that improve your chances of selling at a profit. I guide you through making renovation decisions that promise to deliver the most bang for your buck, and I show you how to spruce up a home to draw in more potential buyers.

      I don’t want to see you get in over your head or blow your entire life savings on a failed real estate investment, so throughout this book I provide plenty of time- and money-saving tips, cautions to help you avoid catastrophe, and pointers to keep your projects within budget and on schedule. I steer you clear of risky, unethical, and illegal ventures and encourage you to wade out slowly and remain well within your comfort zone. After you successfully flip a few easy properties, you quickly become aware of when you’re ready to take on bigger projects, and by that time, you no longer need my advice.

      My goal is to help you decide whether house flipping is for you, and, if it is, I provide you with the knowledge and insight you need to succeed. Flipping houses can be one of the most rewarding and profitable ways to invest your time and money. This book shows you how to do it right, minimize risks, and maximize your potential profit.

      Although I encourage you to read every single word of this book from start to finish, you’re welcome to skip around to acquire your knowledge on a need-to-know basis and to completely skip the sidebars (in shaded boxes). Although the sidebars may be too fascinating to ignore, they’re not essential.

      One brief note: Within this book, you may note that some web addresses break across two lines of text. If you’re reading this book in print and want to visit one of these web pages, simply key in the web address exactly as it’s noted in the text, pretending as though the line break doesn’t exist. If you’re reading this as an e-book, you’ve got it easy – just tap the web address to be taken directly to the web page.

      If you’re reading this book, I assume you’re a homeowner. I wouldn’t buy a car from a car salesman who didn’t drive, and I wouldn’t buy a house from someone who rents an apartment. When you own your own place, you pick up some street smarts about the value of a home, its emotional effect on people, its value as an investment, and the work required to properly maintain it. If you’re not a homeowner, sell this book and put the proceeds toward a down payment on a house. Come back in a couple of years. I’ll be waiting for you.

      Other foolish assumptions I’ve made include the following: