What does it take to be a house flipper?
House flipping is when a real estate investor buys houses and then sells them for a profit.
In order for a house to be considered a flip, it must be bought with the intention of quickly reselling.
The time between the purchase and the sale often ranges from a couple months up to a year.
How much does a house flipper make?
In 2017 I made over $600,000 flipping houses. I sold 26 flips in 2017, 18 in 2016, 8 flips in 2015, 12 in 2014, and 10 in 2013. I will have a few fix and flips that will profit $20,000 to $30,000, and I will have a few that will profit around $50,000.
What is the 70% rule in house flipping?
What is the 70 percent rule? The 70 percent rule states that an investor should pay 70 percent of the ARV of a property minus the repairs needed. The ARV is the after repaired value and is what a home is worth after it is fully repaired.
Do you need a business license to flip houses?
“It has to be an area that’s up and coming, and it has to be an area that sells quickly,” Williams said. Some states require house-flipping businesses to be licensed as general contractors or, if the home is being sold through a subsidiary, require a real estate selling license.