The House Flip: Is House Flipping a Myth?
But is house flipping really all it's made out to be? Amongst my first readings on the topic when I first got into web site flipping and web estate flipping, I found a text-centric site put together by a real estate agent. The site's point was that house flipping is a myth.
The 'art of the house flip' as its proponents term it, is about fast turnaround time. You find someone interested in a property, buy it, and then resell quickly for a profit to the buyer you know. There are a few problems with that though.
First, people like to inspect a house and see if they're at ease in it. How can you give a tour of a property you don't own?
Second, a real estate agent can be sued for not finding the best price for a client. A house flipper might be sued to regain the deed if it's sold soon after the first sale. There are also other legal restrictions, varying on a state-by-state basis, which make house flipping extremely difficult or outright illegal.
Third, houses actually on the selling market that reappear on the market soon after they were bought suggest poor quality property. Agents and others will be aware of these conditions.
Really, the only legitimate house flipping is what's known as the fixer-upper. Buy, move in for 6 months to a year, renovate, clean it up, etc. and then resell. Except that if you're going to pursue that sort of house flipping, you'll find site flipping a lot easier, and requiring less capital.
Related articles are archived in the topical category flipping tips, real estate and house flipping (first post on house flipping).