Remember Jack Nicholson's famous line, "You Can't Handle the Truth?"
That's how I feel when I get a call from an "investor" who is just starting out. They just woke up the morning after watching a late night, "Make a Million Flipping Real Estate Part Time With No Money Down, in Less Than Month" cable TV presentation. They are still waiting for The Tapes to arrive in the mail, but want to get started Right Now, by golly.
How can I tell? Well they usually tip their hat and give me a clue by asking to buy real estate "at wholesale". Usually part of the conversation evolves around, "building my portfolio", I "only buy at wholesale" I'm looking for "fixers". I want to buy a foreclosure. No I don't do repairs. I want to buy it cheap and only have to paint.
Sometimes I manage to bite my tongue rather than quip, "If I had one of those, I'd be buying it myself". Or "sure, get in line."
Instead I ask them are you planning to pay cash? If not, do you have financing in place? Usually this stumps them because, well the TV said, "no money down." Of course it didn't tell them that "no money down" doesn't mean you can do it with no money. Duh.
The truth about flipping is this, if it were that easy, everyone would be doing it. It's not easy. If a property is in bad shape it's going to take more than paint to cure it. Making it nice may mean, rebuilding parts of it, refurbishing or replacing many parts of it. Sometimes IT will smell so bad you need to wear a mask to approach it. Sometimes IT can't be fixed.
Are you the fixer-flipper millionaire to be prepared for this? Save your money, cancel the TV tapes, the only person making a million is the one selling them. Use your head.
Now that's the truth. Can you take it?