Lesson 2

Assess Your House Flipping Readiness

Not everyone is cut out to flip houses. Some people would rather watch TV, invest in stocks and bonds, spend time with family members (without working on a house), or hang out with their friends. Others have a low risk tolerance and can't convince themselves to borrow money.

Do you have what it takes to successfully flip houses? The following list describes the bare essentials:

• Sticktoitism. That's a word I use to describe a combination of the determination and hard work required to overcome adversity. When you're flipping houses, you have plenty of adversity.
• Time: If you can scrape together enough spare time to go house hunting, supervise repairs and renovations, and consult with a real estate agent, you have all the time you need. Many of the most successful flippers are weekend warriors, devoting their evenings and weekends to the pursuit of profitable flipping.
• Money: You don't need to be rich to buy and sell houses. You just need to be able to get a loan. You can finance your flipping venture in several ways-by using your own cash and the equity in your home, borrowing from friends and family members, or getting a loan from a private lender.
• Guts and gusto: Guts and gusto combine to create the perfect personality for a house flipper. You need guts to purchase a house with tens to hundreds of thousands of someone else's dollars in the belief that you can sell it for substantially more in a few weeks or months. A certain amount of gusto is also required to generate the energy and perseverance required to execute a successful flip.
• Family: When a spouse and children are involved, everyone has to sacrifice family time and other indulgences to contribute their fair share to the flipping venture. Families who work well together can make a house flip a family project that draws them closer together. If family members are already a little testy, however, the stress and sacrifice can drive them apart.
• Tools: You don't need a truckload of power tools to flip houses, unless you plan on doing most of the repairs and renovations yourself. A pen, a pad of paper, a calculator, reliable transportation, and a cell phone are the only tools you really need.

Tip: Don't get hung up on what you don't have, just be honest about it. Do what you're good at and hire out the rest... or get a friend to help.

Before we get too far into this house flipping thing, I want to make it perfectly clear that the type of house flipping I recommend is perfectly legal. Some types of house flipping are not. The next lesson distinguishes between legal and illegal flipping. www.flippingfrenzy.com

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