what's going on everybody so in today's video I'm going to be going over the
pros and cons of house flipping so as a full time house we'll burn someone
that's been involved in the real estate investing world for a really about a
decade I can share some valuable insights into the pros as well as the
cons when it comes to house will be so before we get into it please smash that
like button and let's get started okay so let's start with the pros Pro number
one is that when done correctly real estate investing and house flipping can
make a lot of money you know I've done deals where I've made basically my
yearly income on one deal that I've had at previous jobs so when done correctly
it can be very profitable and very lucrative and we'll talk a little bit
more about how to do it correctly later on in this video
Pro number two so when done correctly house hoping can be a lot of fun I mean
it could be exhilarating some people just love the idea of taking some old
beaten up property and fixing it up maybe keeping some of the older historic
features but renovating some of the parts that need to be you know replaced
but that can be an amazing experience just seeing the property transform from
this old junker type of house into a brand-new modern luxurious place me
personally I love just finding a deal to me that's a lot of fun I'm more on the
marketing side of things and less on the contract and then renovation side of
things I like that part too but for me I like just finding an amazing deal I like
getting like 20 or 30 phone calls and all of them are you know so-so type of
deals maybe not the greatest leaves in the world but then you get those one or
two leaves that are just amazing types of deals and then once you get those
deals you know there's other people that are contacting them they want to sell to
other people they have to sell quickly so you have to do your best to get the
property under contract and there's nothing better than getting a great
property under contract and like a lot of real estate investors say you know
you make money on the purchase so when you buy a discounted piece of property
or get it under contract there is no better feeling in the world than that
okay so Pro number three is that as a house flipper you're your own boss
you're not reporting to anyone you know it's completely up to you what you want
to do with your time whether you spend it driving around looking at properties
doing mark just hanging out whatever it is you want
to do you know you're the boss so you make the decisions you don't have to
report to anyone you know if you have contractors going on you might have to
make sure they're doing their work and whatnot
make sure your projects are coming along but you're the boss you're the CEO so
you get to call the shots you have to make the rules if you're making money
it's all because of you if you're losing money is all because of you as well so
there's no one else to blame but that can be a great experience being your own
boss and finding great deals in your own area Pro number four is the evolution of
being a real estate investor and what I mean by that is that every single deal
that you do whether you make a thousand dollars or a hundred thousand dollars
and I've done deals where I've made both of those amounts you get better as a
real estate investor so no matter how much you make what type of deal is you
get a little bit better so by the time you've done five deals ten deals 20
deals 100 deals you become savvy er you become smarter you start to see more
opportunities you really start to evolve as a real estate investor and just see
potential where there was no potential before and you just start to see the
possibilities I mean a lot of people like to real estate investing they think
it's too competitive but once you really get into the business and you start
seeing the amount of deals and the amount of types of deals that you can do
I mean I've seen some investors that just started with cheap little flips and
now they're doing like brand-new million dollar construction properties or condo
conversions or maybe they're building massive rental portfolios with a hundred
unit multi-family buildings there's so much potential once you start getting
some experience and every single deal I do I just love it you know getting to
completion and get into closing and just getting at that little like 1% better
because I know on the next year I'm gonna be savvy or maybe smarter and
probably make more money - okay so Pro number five is that you can do this
business full-time or part-time whatever you're more comfortable with some people
don't want to quit their job and just jump into being a real estate investor
they like the security of having you know income coming in and they can build
up a rental portfolio I know some people there you know they could be full-time
real estate investors but they're getting the income from their job and
they're building massive rental portfolios and maybe they're buying two
or three rental properties per year reinvesting that money by bigger
apartment buildings things like that you can also do the business full-time
obviously there's a lot of people that do that and
the great thing about real estate investing that you know it doesn't take
up as much time as some of these other professions so let's say you find a
great deal you know you might manage the project or oversee the project but
you're typically not gonna be spending 40 50 60 hours a week at that one house
you know you can leverage your time and look at other deals maybe you can start
a YouTube channel maybe you could do different things I mean some people just
do real estate investing so that they can have free time to do what they love
to do like their hobbies maybe they go on bike rides or who knows what can't be
traveling and things like that so real estate investing it gives you a lot of
flexibility know if you do it full-time and then if you do it part-time you can
have the cash flow and build up a rental portfolio or do flips and different
types of deals ok so let's talk about the cons now so like any great
profession or anything really there's pros and cons to it so what are the cons
to real estate investing in house flipping is that you can also lose a lot
of money if you don't know what you're doing and I would say this before you
buy any deal especially if it's your first deal make sure you've evaluated at
least 100 properties and what I mean by that you don't necessarily need to go
out to a hundred properties but you should have some type of underwriting or
deal analyzer and if you want to deal analyzer just go to my website the links
below you can download it for free but you should have practiced analyzing at
least a hundred deals because you really need to be careful with what you
purchased there's a lot of properties that might seem like deals and maybe
they could be a deal in the right circumstance but when I purchase a
property you know it's usually a pretty solid clear-cut profitable type of deal
and I see this a lot with newer investors they always want to purchase
like the first deal or two they see just because they're pretty excited about the
business when in reality they should look at 20 30 40 remember you had a
hundred different deals just so they have a pretty good like reference point
as to okay this is what makes a good deal this is what makes a bad deal
because if you look at a hundred deals there's gonna be like two or three that
are amazing deals there's probably be two or three that
are horrible deals there's probably be a bunch that are mediocre types of deals
but you really need to qualify and find the right deals cod number two is the
taxes so you know real estate there's always tax implications if you're
purchasing it and having it if you have rental properties
so what I would say with this I'm not a CPA by any stretch of imagination but
you should always track you know your expenses your income and also try not to
spend too much if you do a big deal don't go and buy like a Maserati you're
like a brand-new apartment you know you should let me save some of the money for
taxes paid on any debt if you have it you know be pretty responsible with your
money until you get your tax system up and running when you find a good CPA and
you have a good system for keeping track of that one of the biggest regrets I
hear a lot of entrepreneurs talk about is that they didn't keep the books
better when they first started as a business person so be very careful when
it comes to accounting used QuickBooks he's a CPA read books on tax strategies
you know attend tax seminars or try to be very savvy in that area con number
three is that when it comes to flipping houses and just real estate investing in
general properties and projects usually take longer than expected and cost more
than you're expecting them to cost now that doesn't mean that it can't be still
massively profitable and still stay within some type of time frame but just
keep that in mind a lot of investors might think that a property might only
take like two weeks to renovate and maybe it would only take two weeks to
renovate if the contractor shows up exactly the day you purchase the
property and knows exactly what you're doing and you pay in the full amount but
oftentimes you know I'm going to take a contractor a week or two just to get to
the property there might be some delays just finishing out the the property
might might take a few extra weeks so you always have to be patient and kind
of factor in a little bit extra money a little bit extra time when it comes to
some of these properties all right so there you have it the pros and cons to
flipping houses and overall I would just say this I just want to reiterate these
two points number one you just need to be very selective with the types of
deals you buy so be very wary like especially when you're getting started
of just buying any type of house be very selective with the types of properties
you'll purchase and it will make the business a lot more fun I can guarantee
you there's nothing worse than just doing a deal where you're just breaking
even so be very selective about the types of deals that you do and then next
keep in mind that every deal you do you're going to get better and better so
after five deals ten deals 20 deals you're going to become an expert you're
going to start to see more opportunities this whole world of real estate
investing is really gonna open up so just stay with it be persistent be and
be very strategic and picky about the deal survive so thanks for watching this
video and please like please share please subscribe and also if you want
the deal analyzer I mentioned in this video go to the link below on my website
and I will see you later alright bye
you