In this Lesson we will discuss why starting a House Flipping Business may be a better option for you than starting any other small business idea.
#1: Potentially Lucrative Business
Flipping houses can be a lucrative business for full-time flippers or provide substantial side-income for part-time flippers.
If you can flip just 2 to 3 houses per year that generate $20,000 to $30,000 in profit, you could easily match or exceed your full-time income.
If you can scale your house flipping business to 5 houses or more, you could easily be making over 6 figures in profit every year.
"You can't have a million dollar dream with a minimum wage work ethic." - Stephen C. Hogan
Remember to manage your expectations. It takes hard work, hustle, perseverance & an entrepreneurial spirit to be a top-performer in this industry.
#2 Work Part Time
Flipping houses does not require full-time attention so you can keep your day job and flip houses part-time
to make extra money on the side.
Working part-time will allow you to 'dip your toe in the water' to see if flipping houses is for you before you quit your full-time gig.
Note: If you truly want to scale your business at some point you will want to quit your job and commit yourself to working full-time on your business. It's amazing how much faster you can grow when you are focusing 40 hours a week on building your own business instead of 40 hours building somebody else's.
#3 Work From Home
When you are first getting started you will likely be the only employee, so you don't need to rent-out an expensive storefront, office space or warehouse to manage your business. You can manage your entire house flipping business from the comfort of your home!
#4 Be Your Own Boss
Many house flippers are self-employed solopreneuers that get to be their own bosses.
House flippers get to set their own hours, take vacations, have the flexibility to work from anywhere & ultimately have more freedom to do what they love.
Remember, to be your own boss YOU have the burden of holding yourself accountable and YOU are ultimately the only one responsible for your own successes, or FAILURES.
#5 Minimal Startup Costs
Many Small Businesses require huge startup costs for purchasing franchise licenses, building out a storefront, buying huge amounts of inventory or equipment.
If you wanted to open a sandwich shop, you would have to build out a storefront, buy kitchen equipment, restaurant furniture and supplies. To open a clothing store, you would have to build out a storefront, buy retail displays and a bunch of clothing inventory.
Flipping houses requires a relatively small amount of startup capital. In fact, if you have little-to-no money there are Creative Financing strategies for using 'Other People's Money
' that you can use to finance your first property purchase.
#6 No Equipment or Inventory
As mentioned before, flipping houses doesn't require you to buy and manage a bunch of expensive equipment or inventory.
With flipping houses, the houses are your inventory!
#7 No Licenses or Degrees
Flipping houses does not require any special licenses or degrees, but it does take a special mindset, spirit, & a very particular set of skills.
It helps to have real estate and construction experience, but what's more important is your ability to delegate tasks and focus on the areas of your business that you are good at and enjoy.
Note, if you are doing the work yourself, specifically Structural, Electrical or Mechanical work you will likely need a License to perform the work.
...but let's be real, you shouldn't be doing the work yourself if you don't know what you are doing!
Even if you're only interested in flipping houses for the money, flipping houses provides an amazing opportunity for your to give back and build a legacy in the community.
Flipping Houses Improves Neighborhoods
Flipping houses transforms ugly, neglected and distressed houses into beautiful homes for new families to build memories, which improves the quality of life on the street and the neighborhood.
Flipping Houses Increases Property Values
Flipping houses increases property values in neighborhoods which increases neighborhood wealth and local property tax revenues for schools, police and fire services.
Flipping Houses Employs Local Real Estate Professionals & Contractors
Flipping houses employs many different industry professionals including local contractors, tradesman, suppliers, real estate agents, lenders, attorneys and title companies. Your house flipping business helps put food on the table for potentially tens or hundreds of people in your community!
Flipping Houses Helps Homeowners Facing Hardships
Although house flippers are in the business to make money, they can also help rescue local homeowners that are facing foreclosure, bankruptcy, financial distress and hardship.
#9 Personal Growth & Development
Building a business is not easy, and there will be mistakes, failures and hardships throughout this journey, but this process provides an incredible opportunity for you to learn, gain experience and grow on a personal level.NEXT: RISKS OF FLIPPING HOUSES
Learn to Start a Business
Starting a house flipping business will teach you the basics of starting, owning & managing your own business. As the business owner, you will be in charge of managing & understanding all aspects of the business which can help you develop essential business management experience and skills.
By overseeing the rehab of your flip project, you will gain valuable experience and insight into all aspects of the construction process. You will learn the processes and methods of construction and learn the costs of labor and materials which will help you make more money on future projects.
Real Estate Experience
Buying your first flip property will help you learn the ins-and-outs of real estate transactions and negotiations.
Gain Personal Confidence/Courage
Successfully flipping your first property is an empowering experience that can help you build the confidence needed to grow your house flipping business.