# Article on home flipping



## Four Pillars (Apr 5, 2009)

http://www.theglobeandmail.com/real-estate/home-flippers-agree---it-aint-easy/article1559041/

Kind of neat. They talk about how flipping isn't easy or necessarily all that profitable.


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## Berubeland (Sep 6, 2009)

In my experience the more successful flippers are contractors who have done well enough to hire themselves. 

In short they are kind of their own customers. They buy their project, fund and sell it. It gives them steady work without risk of not being paid and no dealing with customers.

Once you start hiring contractors to come in and do work it become very difficult to make a profit. If you have lots of experience you can hire more unskilled guys to do work and tell them what to do but this involves being on site continually. If you hire very skilled experienced contractors lots of time they are are booked up months in advance so you have to wait. Plus you have to pay much more. 

In any case I agree lots of people don't make money flipping houses or they make some and give it all back on a nightmare project. 

Plus with the Real Estate Market so tight it's very difficult to find something with sufficient margins to make a profit. It is possible but not easy. You need to make almost $100,000 on a flip to make it work. You have legal fees and closing costs plus carrying costs then material costs then selling costs. 

So thats that...


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## the-royal-mail (Dec 11, 2009)

It also really helps if you are a RE agent and have cash on hand!


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## cardhu (May 26, 2009)

Four Pillars said:


> They talk about how flipping isn't easy or necessarily all that profitable.


Certainly the various TV programs on the subject don't paint a realistic picture. I know 2 people who have flipped a lot ... one of them does it full-time, and is basically broke, constantly bouncing cheques ... I've never seen one of his projects, but I can't help but think that both the materials and workmanship would be shoddy, so he's not exactly going to incite bidding wars when he goes to sell the house ... the other is an architect, and only does high-end flips ... I have seen a couple of his projects ... innovative design alterations, high-quality materials and workmanship, and stunning results ... he has made a great deal of money over the years.


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## iherald (Apr 18, 2009)

Four Pillars said:


> http://www.theglobeandmail.com/real-estate/home-flippers-agree---it-aint-easy/article1559041/
> 
> Kind of neat. They talk about how flipping isn't easy or necessarily all that profitable.


It was funny that the guy with the flipping tv show said it was easier. Not that I think he's lying, just that I'm sure he gets a LOT of free materials and super discounts so that they will be on tv. 

I know someone who was on tv and got top end GE appliances (fridge, dishwasher, stove, microwave) for $500 all in. It would be a lot easier to make a profit when you're able to do that.


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