It isn’t anything new. For a while now, people have been buying older run-down houses to fix them up and sell them at a higher price. And it can be a lucrative way to make money in the real estate business. In fact, there are several reasons why house flipping is a popular business.
It’s in Public Consciousness
We are all familiar with the idea of flipping houses. It would be difficult to find someone who has never heard of the phrase or concept. With various popular shows on HGTV which make house flipping look fun and easy (it may be fun, but it isn’t always easy), it isn’t difficult to imagine ourselves becoming successful house flippers. We even drive by ads on the side of the road that advertise buying old, run-down houses for cash. The bottom line is that the idea of flipping houses has been ingrained into the public’s mind, which has caused an increase in its popularity over the years. According to BCR Wealth Strategies, the truth is a little more complicated; flipping houses definitely has unique pros and cons to take into consideration.
Low Bar of Entry
Getting started on your house flipping journey is fairly easy. The bar is low in that you don’t necessarily need any formal education to begin. While a general business degree may be helpful in starting any business, there is no requirement. And you don’t need a real estate license to get started flipping homes, so you can get started almost right away. The only thing you’ll really need to get started is an investment to purchase your first house to flip. Fortunately, investors are everywhere, so you don’t necessarily need to front your own money to start. Fix and flip loans are becoming more popular, and popular TV personalities Tarek and Christina tout that you can even flip houses with no money down.
Fix and Flip Loans Are Becoming More Popular
Most people who want to begin flipping homes will need some sort of financing. Fortunately, due to the rise in popularity of house flipping, many investors have chosen to offer fix and flip loans. Student Loan Hero explains that the benefit of this type of loan, as opposed to a hard loan from a bank, is a short holding process and the flexibility of being approved much faster. The application process is easy, and the stipulations of this type of loan are more lenient than traditional loans.
The rise in popularity of house flipping is due to shows that make flipping look fun and easy. As a result, the industry is booming. There’s never been a better time to start flipping houses. Just make sure you know what you’re in for before you get started.
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