When the market gets hot and prices go thru the roof, that’s when house flipping becomes a popular sport but the challenges are real and not everyone gets out with money in their pocket. Architectural Digest’s Michael Y. Park asked Thomas McCormack, Resources Real Estate Senior Partner & Broker for his take on this popular topic.
“Cable reality television shows make it seem easy and fun, but how to flip a house can be a much trickier process than long-term real estate investing. It involves a balancing act of purchase price, personal finances, the right upgrades, accurately estimating the return on investment, the housing market, and timing. “If done correctly, you can stand to make a significant return,” says Doug Greene, owner of Signature Properties in Philadelphia. On the other hand, “you are at the mercy of the market. If things turn against you, you could stand to lose money quickly.”
And no, it’s definitely not the kind of thing that you’ll wrap up nicely in an hour minus commercial breaks—once you sign on to flip houses, you’re likely in for a wild ride in which you’ll have to stomach lots of uncertainty…”