We’ve all seen it on TV. The investor swoops in, picks up a great deal – a six-bedroom, four-bathroom house with a brand-new swimming pool – and two weeks later it’s on the market and excited buyers are willing to enter a bidding war.
Except… that’s TV.
There are plenty of myths that surround house flipping, so it’s time to put them to rest once and for all.
House-Flipping Myth #1: Flipping is Easy in Atlanta
When you flip houses, there are ways to get things done faster (and make more money). There aren’t any huge shortcuts that lead to instant gratification, though. You’ll have to find the deals, put in the work, and do the right things to sell.
The truth is that flipping homes in Atlanta is typically easier than it is in many markets, but it’s not a walk in the park.
House Flipping Myth #2: It’s a Good Idea to DIY the Rehab
For the most part, it’s better to use a contractor (or multiple contractors) when you’re rehabbing a house. Even if you have the time and talent to do it all yourself, remember that your time is valuable; the work can take you away from lining up more deals.
House-Flipping Myth #3: Any House is “Flippable”
While it would be great to be able to flip any house in any neighborhood, the reality is that some houses aren’t right for it. You have to consider the neighborhood, the overall cost of the house, and your overall cost (purchase, rehab and selling), and there’s no specific formula you can use – it’s typically a matter of combining the numbers with your “gut feeling.”
House Flipping Myth #4: The Nicer You Make the Home, the More Money You’ll Make
Designer finishes are nice. They’re very nice. However, that’s not necessarily what buyers are looking for – and it’s not necessarily what they’re willing to pay for. Most investors find that it’s best to keep things simple (neutral walls, simple finishes and quality-but-affordable cabinetry). If you’re like many investors, you’ll find that providing value is the best way to turn a profit.
Do You Need a Hard Money Loan in Atlanta?
If you’re planning on flipping houses, we can help. We offer hard money loans in Atlanta that give you the cash you need to make things happen.