Glenn and Amber, who are experienced real estate investors, shed light on the potential of flipping houses in 2024 and beyond. In this article, we explore the hidden costs, the importance of education and finding the right coach, and the impact of market conditions on flipping houses. By delving into their insightful conversation, we uncover the key factors that can make or break a successful house flip.
The Allure of Flipping Houses in 2024
Flipping houses in 2024 presents a golden opportunity for savvy investors. Glenn and Amber emphasize that the current market is starving for single-family homes, making it an ideal time to enter the flipping business. Glenn states, “Flipping single-family homes in 2024 is like a gold mine because right now, it’s very difficult to find single-family homes.” The demand for these properties is so high that they are snatched up within seconds of being listed.
However, Glenn and Amber caution that flipping houses is challenging. They highlight the hidden costs that can arise during the renovation process, such as delays, contractor issues, and unforeseen problems with the property. Amber advises, “You must ensure you’re budgeting for those in advance.” By purchasing the house at a deep discount, investors can account for any potential issues.
The Importance of Education and Finding the Right Coach
Glenn and Amber stress the significance of getting educated before diving into house flipping. They caution against relying solely on television shows, often portraying an unrealistic picture of the process. Amber explains, “They give you some numbers at the end, and miraculously, they seem to make a bajillion dollars on every flip they do.” They recommend finding an experienced coach who has weathered multiple market cycles to avoid falling into this trap.
Glenn emphasizes the importance of choosing a coach who has stood the test of time rather than a “new Ru” or guru who lacks the experience to guide investors through challenging situations. He advises, “Look for experienced professionals.” Additionally, Amber highlights the importance of finding a coach with whom you have a personal connection. She states, “Find somebody that you like… somebody that you resonate with.”
The Value of Honesty and Integrity in a Coach
Glenn and Amber emphasize the need for a coach who will be honest and forthright, even when it means delivering difficult truths. They stress the importance of having a trusted advisor who can guide investors through moral and integrity issues that may arise in the real estate business. Glenn states, “Having a trusted advisor and a coach on your side to guide you through that is priceless.”
Amber adds that a good coach should challenge your thoughts and decisions, acting as a sounding board. She states, “That’s a good thing in business.” Investors can make more calculated and successful business decisions by having someone who is not afraid to tell you when you’re wrong or on the wrong path.
The Hidden Costs of Flipping Houses
Glenn and Amber shed light on the hidden costs that investors often overlook when flipping houses. They emphasize that time is a significant hidden cost, as investors must consider the time they must dedicate to the project. Glenn advises investors to evaluate the worth of their time and the impact it may have on their personal lives. He states, “If you’re going to take time away from your family… I think it’s important that you know the return on that investment.”
Amber adds that holding costs, such as interest on loans, taxes, insurance, and maintenance, should also be factored into the budget. She highlights the importance of considering these costs upfront to avoid any surprises down the line.
Managing Stress and Navigating Market Conditions
Glenn and Amber acknowledge that flipping houses can be a stressful endeavor. They emphasize the need to manage stress effectively to ensure success. Glenn advises investors to get a good night’s sleep, be present at the moment, and pause before making big decisions. He states, “An ounce of prevention is worth a pound of cure.” Investors can minimize stress throughout the process by planning and staying focused on the end goal.
Market conditions also play a significant role in the profitability of house flipping. Glenn highlights the impact of a seller’s market versus a buyer’s market on the overall success of a flip. He advises investors to be mindful of their area’s market conditions and be prepared to adapt their strategies accordingly. If the market shifts during renovation, investors may need to adjust their pricing or exit the deal quickly to avoid potential losses.
The Alternative: Wholesaling
For those who may not have the time or resources to undertake a full house flip, Glenn and Amber suggest exploring the option of wholesaling. Wholesaling involves putting a house under contract and then selling that contract to an end buyer for a profit. This method eliminates the risks and time commitment associated with a full renovation. Glenn emphasizes that wholesaling can be a lucrative alternative, stating, “Wholesaling is a great way to go out and find those off-market deals and then bring those deals to market.”
Conclusion: A Lucrative Investment Opportunity
Flipping houses in 2024 presents a lucrative investment opportunity for those willing to navigate the challenges and hidden costs. Investors can maximize their returns by getting educated, finding the right coach, and being mindful of market conditions. Whether managing a project or exploring wholesaling, the key lies in careful planning, managing stress, and staying focused on the end goal. Flipping houses can be a rewarding and profitable venture in 2024 and beyond with the right approach.