Investing in Real Estate: What is the number one mistake people make trying to flip houses?

What is the Number one mistake people make when Flipping houses

The number one mistake people make when investing in real estate is investing before understanding the rules. Listen to learn the rules to win the game of investing in real estate.

A few weeks ago I interviewed my co host Trevor Evans on the topic “The path to Financial Freedom” We received such an overwhelming response to that topic that I decided to have a spin off series on Real Estate Investing. Trevor Evans is a Speaker/Trainer for Legacy Education Alliance and Rich Dad Education. Entrepreneur, Real Estate Investor. Banker and Founder of Personal Awakening Brand “Being Normal Sucks.”

We will start off our series teaching on one of the most popular investment strategies in Real Estate Investing “Funding, Fixing and Flipping.

Flip or Flop

Doing my research for this topic, I found that there is a plethora of mistakes beginning investors make when working with rehab properties. Many of them because of watching shows life MTV’s Flip or Flop where they always end up making the right choices and thus make thousands of dollars in profit!

My co host and I both agree, since we are both Abraham Hicks students, there is nothing wrong with looking for contrast around you and choosing what you want to bring into your vortex.
We are setting the intention that all you would be investors or current investors will gleam from our knowledge and make fewer mistakes with your real estate investments. So if you do fail, you would fail forward!

One of those investment vehicles is to Fund, Fix and Flip houses. It is by far the most popular vehicle because of the opportunity to make a lot of money quickly.

So, make sure you tune in to this podcast twice per month for our series or subscribe to my podcast so as not to miss anything!

In keeping with the format of the show, I want to leave you with my tip of the week.

This week’s tip of the week: Winter is the best time to purchase Real Estate”
From the book “Your money and how to keep it” by Brian Costello

“While economic development can make a difference when it comes to purchasing a house, there is no question that winter is by far the best time to buy.
Think about it for a minute, the weather is freezing cold, the winds are gusting, everything is covered with snow, everybody wants to stay inside where it is warm – and those few who do go outside to see houses that look unattractive because they are knee-deep in snow are serious buyers. Could there be a worst time to be out braving the elements looking for a house? No.
And that’s exactly what happens. Everybody sits tight. No one even thinks about buying a house in the winter months. They are all waiting for the grass to turn green and the flowers to start to bloom.
In the meantime, houses are being put up for sale. The biggest reasons for selling a house still affect the marketplace, no matter what the weather. They include family breakups, company transfers, deaths, and financial hardships.
When a family splits, it’s not uncommon for the house to go up for sale right away as neither spouse has enough money to pay for it outright. If your boss decides to transfer you to another city, you generally have no choice but to move. As a result, your house might be on the market right away, no matter what the market is like. Most of us can’t afford to pay the cost of accommodations in two different locations.

Death, financial hardship, and divorce happens throughout the year; summer and winter. But to have them happen when there are fewer buyers interested in another house always works in the favor of the buyer. It is the old law of supply and demand. And that is what you see in the winter months. There is more supply than there are buyers, so the buyer is in a much better position to demand a lower price, better financing terms or a combination of both.
Winter is also a good time to check that the thermostat is working correctly by looking for heat loss. If the prospective house has less snow on the roof than the other houses, it could indicate that insulation is lacking. When you get inside the house you can listen to the furnace. If it goes on and off while you are there, you know that the house has drafts or furnace problems.
These are some of the reasons why winter is the very best time to get a bargain.”

That is my tip of the week. I hope that you received some nuggets about house hunting for bargains.

Here are some show notes from our expert Trevor Evans:

Words do not make you an expert, experience does. I practice what I teach.

Trevor feels that he is an expert because he is not only a teacher but he is putting in work in the field.

Question: “What is the catalyst to your success as an investor?”
Answer: “Understanding the rules.”

Reasons for failure as an Investor

Most people play the game of investing in real estate with enthusiasm and talent.
Talent could be their investment funds or just understanding money.
But in any game, You should play to win!
In order to win, like in any sport, you must understand the rules.

If you don’t understand the rules, your talent and your enthusiasm will run out before you can win!

But if you combine your Talent and Enthusiasm with Competence, then you could win the championship or make lots of money!

So let’s answer the question:

The Number One Mistake People Make – Getting into the Rehab Game?

Watching TV shows like the Flip or Flop people think that they can just buy a house, throw some money into it and then flip it and make lots of money.
They do not see the underlying problems that happen to first time investors who do not know the rules of the game.
The flip or Flop investors are doing great now; but I am sure it took them a number of years of failure by trial and error to understand the rules to win the game.

Investing is not easy but it is simple, if you follow the rules

Over your head

It is a process that is done through setting up a system or a set of principles.

Principles do not create success, they prevents failure.

3 Reasons for Failure:
1. They get emotionally involved
2. They pay retail
3. They become intimidated

Listen in to learn how to overcome these reasons for failure.

Author: Myrna Young

About Myrna Morris Young : Myrna Morris Young , CPC, ACC, President and CEO of Myhelps Consulting LLC., a Certified Professional Coach, Author, Realtor, Property Manager and Real Estate Investor. Author of "Out of The Snares" A story of Hope and Encouragement, Myrna's expertise includes Executive Coaching, Leadership Coaching and Small Business Coaching. Her main website is www.myhelps.us To learn more, or to hire Myrna for Business or Personal coaching or to speak at your event, please contact her at: Phone: 888-569-3182 Email: myrna@myhelps.us