Real Estate investing an flipping

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The following article and video showed up on Yahoo finance the other day. These guys are only out to take your money. Read the article and you will find that less than 2% of people that enroll in something like this will survive. Be carful what you jump into. My personal comments are below the link.

This reality TV star wants to teach you how to flip homes: http://finance.yahoo

I have dealt with many flippers over the past 13 years. Most of them think because they take a course they can make easy money – until they get that house inspected prior to them selling it. These courses teach them to pretty the house up – redo the kitchens, bathrooms, floors, and paint the interior and exterior – using mostly low cost items. What they forget to do is look at the roof, electrical system, plumbing, and AC.

Also in Florida, all work must be done by licensed contractors. Most of them do not have a license to do any of the work they are doing. I have had numerous irate seller / investors when they find out that they need a new roof (probably knew it anyway but figured painting the roof singles would cover it up) or the electrical system needed to be updated in order for the new buyer to obtain insurance.

None of these investors will use a home inspector when they purchase these flipper homes. Guess they figure the cost is not worth it. I know every time I inspect one of these properties there is a 90% chance that there will be $15,000 to $20,000 worth of repairs that will be needed. and most of it for insurance compliance. It is my job to protect my clients. For a few hundred dollars, these investors could have the same information on what needs to be done, instead of being surprised when they think they have an easy sale and profit.

Posted by Bill Siegel Florida Home Inspection Team Inc

One thought on “Real Estate investing an flipping

  1. Anonymous

    Bill:

    I just wanted to say how happy me and my husband were with your services. You were able to accommodate us in the same day and did and incredible inspection of our future home. It really made a difference knowing and have some one as experienced, professional and as accurate as your self with with all the items you pointed us and kindly explained. You are the best!! We will be recommending you highly to many of our friends and contact.

    Thank you so much,

    Yovanka

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