You Don’t Have To Flip Everything
You don’t have to flip everything. Not that there is anything wrong with flipping houses or that it shouldn’t be part of your business. We have flipped lots of houses but just because you can flip the house doesn’t mean you necessarily should.
I hear a lot of people say “I just want to flip a house” or “I guess I have to flip it” or something similar because they feel like flipping an investment house is either the best or only way to profit with certain investment houses. I feel like this is the wrong approach.
We like to take a step back and look at every house that we buy and decide how this best fits our business at that time. We flip houses, we have rental property, we sell houses with owner-financing, and we sell investment properties to other investors. And we will choose different strategies for different types of houses at different times.
A house we just purchased is a great example of this. This house would work as a flip. It’s not in that bad of a shape and could easily be turned into a rental or maybe another strategy is better.
When we took a step back and looked at the house and at our business we decided that we do not want another rental, the price point is a little too high for owner-finance, so maybe we should flip it. It wouldn’t be a very difficult project but we have 3 rehab projects going on right now with another one about to start. This means that this house will probably get put at the end of the line and therefore take a while which adds to our holding costs and keeps our capital tied up longer.
Our other option is this. We don’t want it as a rental but it would be a great rental for someone else. What if we just sell it as-is to an investor who is looking for a rental like this? If we fully rehab this house and sell it we are going to make more money. But if we sell it as-is we will still make a profit and we will have our money back in 2 weeks. At certain times either choice may be the better choice. On this house, we chose the faster choice that has less profit but much less time, headache, and risk.
I’m not saying that flipping that house would have been a bad idea or that you shouldn’t flip houses. I am saying that you should not let yourself feel like you have to flip houses or that a certain property has to be flipped to make a profit or be the best choice for your business. Your business is your business. We have used many different strategies in our business and you should step back and decide for yourself what the best choice is at that particular time.
Ask yourself a few questions. What does your business need? How much profit does each choice produce? How much time, energy, risk, and money are associated with each choice? Then commit to a decision and move forward.
If we can help you, give us a shout, 210-201-6644, or find us on the website, sellmysanantoniohouse.com.