Flipping Houses For Beginners

house for flipping

What Does Flipping Houses Mean?

In the USA, Flipping Houses involves buying an investment property with cash, renovating (rehab), and selling it for a profit as soon as possible.

I’m sure you have watched house flipping shows and fantasized about making a nice tidy profit.

Let’s start with a $100,000 budget.

You get a house that sells for $100,000 to $200,000 range. This is nice in your daydream.

You make a handsome profitable 54% return on investment, say in two “glorious” weeks?

I say “glorious” because the term “reality T.V.” applies here.

Guys, listen to me. Those are T.V. shows.

It means everything is scripted with a movie director, actors, and well, even the handyman is a paid talent.

Reality T.V. for House Flipping is NOT real. Truth.

Who Are The Real House Flippers?

House flippers are property investors who know something that home buyers usually don’t. They have ready cash and consider the property as an “investment” rather than a “home” they want to live in.

They are willing to buy the ugliest property on the street.

You and I know such houses. We are not saying that it’s “haunted” or anything like that, but it is just plain “ugly.”

Do you know of any property that is overgrown with a junk vehicle permanently parked out front? The fence or the roof is leaning and possibly falling over. The paint is peeling; the wall has wide gaps. Well, you may think to yourself that the house is just impossible to fix up.

Who would want to buy an old property with cold hard cash?

The serious property investors would do that.

Pay with hard money.

The bottom line is this: Buy a “dilapidated” property. Pay CASH. No, take a loan or mortgage. When you buy in cash, you have what is called instant equity.

How is this possible? How much cash? Who has this kind of money?

You are right to think that no one may buy anything with cash these days. Here’s something most people don’t realize.

When you buy an old house that no one wants, it just means that no one else is willing to invest in the property to improve it. All you need to do is to work with an excellent contractor to get everything in order. Improve on it, so you can get an average homebuyer gets a move-in ready home.

Simple, right?

The truth is the reality T.V. stars make things look incredibly easy.

T.V. shows have a few episode segments to shoot the video clip. Hence they can make a hefty return over a relatively short time frame (by the time an episode ends!)

The Truth to Flipping Houses For-Profits

You need to do the hard work. It is much more than sneezing as you remove the carpet and push back a wall to add a new bedroom.

There are many other moving parts involved.

However, if you are interested and willing to learn, you have a new career carved out for you.

Congratulations, you can become a House Flipper.

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Moving Forward in Learning – Invest in Real Estate

Real estate investing can help individuals build wealth. It may not make you wealthy overnight, but it is the best vehicle to increase your net worth is a shorter timeframe.

Buy Low, Buy CASH, Rehab Smart, Sell Fast, or Rent.

House flipping can net you a significant windfall if you do it correctly. This process is a math game where substantial profits – cash can be made by those willing to take on the challenge.

If you want to exponentially grow your real estate portfolio and add to your wealth, you can add.

Multifamily properties. Rent these out to produce monthly cash flow.

The cash flow can be saved and reinvested into more deals.

You can also buy a property cheap, rehab it and rent it out. Some properties can be turned into the proverbial golden goose. You keep earning rental month after month to build your pile of cash.

After a few years, the rental would have paid off your initial investment. Remember the mantra, “Buy Low, Buy CASH, Rehab Smart, Sell Fast.”


In 2008, subprime mortgages proved to the U.S. housing crash. The credit crisis resulting from the bursting of the housing bubble is an important cause of the 2007–2009 recession and trauma.

If you remember, mortgage loan companies began to loosen the lending requirement for unqualified borrowers to buy a house. Once the defaulter started to rise, the U.S. housing market went under when borrowers couldn’t pay their mortgages anymore.

Buy Low

In many local markets, prices are now comfortably above the pre-recession peak.

When Americans lose their jobs or couldn’t pay their mortgages anymore, they lose their homes in short-sells or foreclosures. The price of houses is now comfortably above the pre-recession peak, but the current market situation will see more properties going down.

Many owners for both residential and commercial properties see their properties go “underwater” with foreclosures at all-time highs.


Real estate auctions are bringing real estate buying opportunities to many.

For auctions, buyers decide the fair value of the property that they are bidding for. Auction properties are “auctioned off” and not “sold” at an attractive price.

You can buy severely discounted properties in the U.S.

Before bidding, you need to know that you are buying the property with ready cash. You will have to pay for the property in full immediately after winning the auction.

Is there a difference in buying cash? Yes, you can join other first-time buyers to auction because it can save you money.

Rehab Smart

Rehabbing is all about knowing the property market. Buying an auction property is a great way to develop an investment quickly.

>> You may also be interested in our featured article on “How to start a house flipping business.”

If you want cash flow, you need to know how to Rehab Smart. First, let’s draw a line to differentiate a quick fixer-upper and a total rehab.

A fixer-upper is a structurally sound home. All the plumbing, sanitation, electricals, and heating is in order. It needs some cosmetic changes to bring it up in value with the rest of the neighborhood. You probably need to include paint, new carpeting, or refinished floors. This may or may not involve non-essentials like updated kitchen cabinets or lighting fixtures.

Things that don’t require a lot of heavy lifting.

A rehab project can include everything from replacing structural elements, straightening a roof, and replacing the roof covering, repairing water damage, and replacing electrical components.

To bring up the value of the property, rehab includes tearing down of walls and putting in an extension for a bedroom or addition of bathroom as well.

Chances are for a full rehab; you will need to engage a local contractor well versed with the law of the land.

To Rehab Smart, you will have a quote for an actual cost of repair before you put your money down on the auction property.

Sell Fast

Timing is everything when trying to complete rehab. To maximize your return on investment (ROI), you need to keep to schedules.

Every day your property goes without being sold, your returns will be diminished. The longer you hold onto a property, the more you will have to pay in taxes, insurance, loan repayments, and other utility costs.

You don’t want to have your money tied up in a property you haven’t sold.

How to sell your rehab as fast as possible? There is no excuse for not having a sales plan ready for when the house is completed.

A good sales plan includes staging, using the right local agent who knows the market value of your new rebab, prospecting new home buyers, and closing deals.

By the time the home is ready for the market, you should sell and sell fast.


Do you remember my reference to the Goose that Laid the Golden Eggs? Well, one-way real estate investors learn this – sometimes its better to rent than to sell.

When obtaining a mortgage becomes difficult and complicated for new homebuyers, they may look for a home to rent instead.

During the recession, many residential and commercial properties see their properties go “underwater” with foreclosures at all-time highs.

This is the time that the rental markets flourish. People still need a roof over their heads, no matter the economic situation.

When they can’t afford to buy, they will rent first.


I have personally flipped dozens of investment properties.

I enjoy the passive income and the freedom that this lifestyle gives me.

What I do now is to teach students the fundamentals of Real Estate Auction, where you learn valuable key points. I teach my students how to:

  • Identify the types of properties that are sold through real estate auctions.
  • Identify types of the real estate auction format.
  • Employ methods to shortlist valuable capital gain properties on the market
  • Learn how to go in the 50 U.S. states divided into a total of 3,007 counties
  • Understand the benefits to buyers in a real estate auction
  • Learn how to gauge the market trends
  • Project future use of auctions to capitalize on the real estate market
  • Learn how to purchase properties in the USA and flip it (resell it on the market).
  • The process of flipping can be continuously repeated

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