Real estate investors and reality TV show fans often follow fix and flip programs such as Flip This House, Flip or Flop, and Rehab Addict. These shows rarely talk about hard money loans or other types of financial solutions for real estate investors.
While reality fix and flip shows may be fun to watch, viewers shouldn’t use them as a learning source when investing in real estate. Flipping homes is rewarding, but it comes with a unique set of challenges.
Before you dive into this business, here are four things reality house flipping shows don’t tell you.
1. Finding a Good Property is Time-Consuming
The truth about reality house flipping shows is that they fit a specific timeline. This is unrealistic compared to the actual real estate market, which is constantly changing. For instance, there’s a supply and demand gap in the US housing market right now, making it difficult to find a good property that matches your budget and expected profits.
The entire fix and flip concept depends on an investor’s ability to find the right property at the right time. House-flipping TV shows make it seem very easy and hassle-free.
While it’s a good strategy to motivate investors, it can lead to unexpected expectations and costs.
2. Flipping Is Not Easy
Fixing and flipping homes isn’t as easy as buying a house. It requires extensive capital and financing resources. Investors have to focus on finding the right property, assessing and inspecting it, and negotiating a profitable offer.
TV shows don’t tell you about potential deal-breakers like cost misjudgments and the unavailability of financing solutions. This is when you can opt for a flexible hard money lender to close profitable deals.
3. Projected Profit Doesn’t Always Match Real Numbers
Flipping shows often show real estate investors getting more than expected profits on their investments. However, this isn’t a given. Despite property valuations and market research, you may experience price and ROI fluctuations.
4. It’s Not a Get-Rich Strategy
While investing in a fix and flip property is a smart real estate move, it’s not a smooth revenue generation platform. Fixing and flipping homes requires more capital investment than buy and hold or multifamily financing.
Investors need to keep track of necessary renovations and search for valuable buyers. This is why we recommend you opt for a fix and flip hard money loan to avoid any financial slipups down the road.