How to Spot a House-Flipping Scam

Flipping a house is a great way to make some money. You simply find a home that has potential. From there, you can invest some time and money to make the house a more modern and updated home. The goal is to sell the house for a good deal more than you paid for it. There are some programs and companies that promise to teach you everything that you need to know in order to successfully flip homes. Some of these sources are trustworthy resources. Unfortunately, you may need to know how to spot a house-flipping scam.

Research the Company

Real Estate Elevated suggests that a really simple way to sort out the legitimate house flippers from the scams is to look at reviews and search for complaints to make sure the company or individual offering the opportunity is legitimate. If you can find even a few people that have had bad experiences, then you should probably move on. The internet has become a really great place to find reviews on all kinds of products and services.

Expensive Startup Costs

Lazy Man and Money cautions that if someone is asking you to invest money in startup videos, books or classes, then the program is probably too good to be true. If there is someone who is truly successful and can pass on information to you, they will do so in good faith that you may invest in some of their materials to help your cause.

Providing Full Financing

If someone provides you with the promise of full financing to get you started on your first flip, this is usually far too good to be true. House flipping is something that you’ll need to finance yourself. REI Kit recommends that if you don’t have the capital yourself, there are many creative ways to fundraise without putting yourself in severe debt. If you’re using an investor, that’s something you’ll need to find yourself.

Literature Integrity

Any literature that you are provided that outlines a company should be free of spelling and grammar errors. If you find that the wording doesn’t make sense, then you might not be dealing with a company that is on the up and up. Integrity is a big deal for success, and the company you are dealing with should understand that.

If you want to start flipping houses as a way to make money, do your own research to start out. The internet can provide you with some great resources. Once you’ve done some reading, you might find some companies that will provide you with classes on this topic. Just make sure you can trust the system you are signing up for.