Lesson 1

Nickel Tour of House Flipping: An Overview

On its surface, flipping houses appears to be a fairly easy 5-step process:

1. Find a dontwanner. (That's the term I use to describe a house that nobody, even the current owner wants.)
2. Convince the homeowner to sell the dontwanner to you for 25%-50% below market value.
3. Fix up the home to bring it up to market value or increase its market value.
4. Sell the home for at least 20% more than you invested in it.
5. Pop the cork on the champagne and start celebrating.

Like most things in life, flipping houses sounds a lot easier than it is. In Step 2, for example, why would anyone in their right mind sell you a house for 25%-50% below market value? Where do you get the money to buy and renovate a house? How do you make a 20% profit when repairs and renovations cost so much?

In subsequent lessons, I answer all these questions and show you how to flip houses in a way that minimizes your risks and maximizes your potential profit.

If you just can't wait for the next lesson, buy Flipping Houses For Dummies now!