Lets Talk about the Positive aspects of House Flipping…..and also Address Some Negative Things that are out There on the internet.

First and foremost is that conventional house flipping is not a get rich quick scheme despite what you may read by some of the critics of coaching courses out there.  This is a very big misconception and leads people to believe that it is easy, quick, not too much work is involved etc…..all pretty much false.

A good system, timing, and  buying the house at the right price, are all part of the process.  The end result is that profits can be made, a sense of accomplishment is felt, and a contribution to the community is achieved in many cases.

A vacant house is a problem!

In most cases it usually means that somewhere a bank is not getting a payment for this empty house and also the seller is behind in the payments on this empty house as well.  When  real estate investors step into this picture, the bank gets their money back for a bad loan, the seller gets off the hook of liability of the bad loan, and the house that once was an unmaintained eye sore in the neighborhood, gets fixed up, and the neighbors are happy about the house having a fresh new remodeled look.

Another source of negative perceptions are house flippers who try to just buy a distressed property, do as little as possible to put a good face on it, and then try to jack the price up and sell to an uninformed or uneducated buyer.

As a result, the buyer ends up having to invest thousands and thousands of dollars into their new house to correct defects and problems that were hidden by the deal. This causes a very bad perception of the house flipping industry and is an equivalent of selling junk.  While this is sometimes the case, legitimate house flipping does not involve such tactics and there are many people who go about it in using fair and equitable business practices.

Like any business, when you deliver a shoddy product, with shoddy workmanship, you will soon be out of business.   House flipping is the same.  I have even known of some new home builders where they created a poorly built home, and as word gets around, they are eventually out of business.  House flipping is no different.

As a house flipper, carefully doing property research, and making a great buy on your subject property, investing in legitimate repairs and remodeling, and finding the right buyer in the end are all important to be in the house flipping business for the long term.

I live in Florida, and my state was one of the “hardest hit” areas in the country from the securitization scandal the major banks created which started the last housing crash. Just a few years ago I remember 1 out of every 10 houses in my area sitting vacant and abandoned.

An empty house does not contribute to what a community needs. A house that is in decline and need of repairs does not increase in value, the value that leads to a better tax base for the community. So someone who is conducting legitimate house flipping by finding a good buy, investing funds for repair and renovations, and selling it at a higher value than it was BEFORE, is adding value to the community and to the tax base of that community.

Legitimate house flipping brings taxes back to the community by improving home values and expanding the tax base. Your efforts as a house flipper are directly contributing to positive aspects of someone’s life and communities and neighborhoods in the areas that you are working in.

It is pretty clear that when people in communities are working and producing income for their families, they are a much happier people.  One of the benefits of house flipping when done on a legitimate basis, is that it puts people to work who are especially happy to work on homes in their immediate community.

Depending on what is needed to improve the quality of the house and address repairs, people who have purchased homes for the purpose of reselling them need to hire general contractors, laborers, plumbers, electricians, carpenters and the like.  Add roofers, plaster and drywall specialists, and landscapers, and you have hit the full gamut of the workforce who need and want to work.

Their wages contribute to the local and national economy and YOUR business as a house flipper is at the root of that situation. There is also the residual effect on local stores who sell supplies as lumber, drywall, tools, nails, screws, plumbing supplies etc.

I remember in the housing crash walking into a Home Depot and seeing the parking lot and the isles empty in the middle of the day in the work week. Thats not the case many more! The local Home Depot s are crowded, and America is back to work, because House flippers and investors turned the market around.

Continuing on the neighborhood and community positive factors, many people know what it is like to take great care of their house and the property around it, feeling like you are helping to  increase the value of your home along the way, only to have a close neighbor in your community let their property get run down and possibly devalue yours and other homes in the immediate community.

House flipping contributes to keeping homes in a neighborhood in healthy condition as the repairs and remodeling needed adds to the value of the home and the neighborhood.

This brings fresh people to the community and healthy relationships with neighbors who are happy to see homes in their neighborhood get improved.

I totally attribute the “turn around” of housing industry from the housing crisis the big banks created, solely to the investors and funds that went into the distressed marketplace and took the risk of remodeling a run down unwanted bank asset, that the communities were complaining about, and revitalizing the look of neighborhoods, and turning a crisis around for the good of all.

The “recovered” housing market and people being put back to work, that you and I see today, is largely due to house flippers and investors who are legitimate hard working business owners, doing what they do best, and creating a better community for all.

If you already are a house flipper,

Enjoy the Journey!

Tom Nardone

“Millionaire Mailman”

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