Ever since I started watching those housing flipping shows on HGTV and TLC, I've often day dreamed about purchasing a house that needed work for a bargain basement price, fixing it up, and flipping it for profit. It looks relatively easy on TV, so why can't I do it? The more I thought about the idea, the more complicated it became. The biggest hurdle is purchasing the house cheap enough so that it can be sold with enough margin to make the process worthwhile.
It comes with great timing that publishing contacted me with a free copy of the new book The House Flipping Answer Book written by a real estate flipper/lawyer Denise L. Evans.
Who is the author?
According to the back of the book, Denise L. Evans, Attorney at Law, is a licensed commercial real estate broker with an active practice. She is a graduate of the University of Alabama Law School and has over 20 years experience of real estate expertise.
What the book is about?
The book steps you through the process of what is required to flip a house for profit from start to finish. The layout of the book is a bit unique where each chapter is separated into common questions. It's almost like a giant FAQ for wanna be and experienced flippers alike.
The Good and The Bad
It answers questions that all newbie flippers would have and even gives a detailed outline on how the process works. The bad, well, not so bad for our U.S Readers, but for the Canadian readers, you may want to skip this book. The book contains a lot of U.S tax advice which is not relevant for us Canucks.
What did I learn the most from this book?
The author explains that the key to flipping properties for profit is that you need to include your profits into your expenses when deciding on your maximum purchase price. For example:
Market Value when fixed: $200k
- repair materials/labor cost: -$20k
- holding costs: -$5k
- agent selling fee: -$10k
- closing costs: -$1k
- profit: -$20k
- fudge factor: -$5k
Maximum purchase price: $139k
Seems like a large spread between $200k and $139k, but note that houses that are worth $200k in mint condition are typically listed for much less when they need extensive repairs.
Want a free copy?
- Simply leave a comment and you'll automatically be entered in the draw for a free copy.
- Please only 1 comment entry / person (please enter a valid email address).
- Only those with a North American mailing address may enter (publisher rules, sorry).
- Contest will end Thursday 5pm EST May 8, 2008 and the winner announced shortly afterwards!