Lisa has an entrepreneurial eye like no one else I know. She left a corporate job to start a business when she was still in her twenties and hasn’t looked back. That was a couple of decades ago and, since then, she’s opened, managed, and sold two successful companies. So, whenever we talk, I always learn something new—about a new industry, different management strategies, or the latest approaches to creating work/life balance. You name it, we’ve talked about it. But, on one of our walks around the park recently, she said that she’d been secretly wanting to buy a house to renovate and sell and, possibly, start a new career as a real estate investor, like me. Clearly on the fence about it, we talked through some of the reasons she should buy a house to renovate and sell to propel her toward her new business venture.
Great Reasons to Buy a House to Renovate and Sell
There are a lot of good reasons to buy, renovate, and sell houses for a living—no matter your professional background. Whether you want to make changes to your work/life balance, leave the gloom of a corporate cubicle behind, or embark on your next entrepreneurial adventure, a career in real estate investing can be a fulfilling one. But, if like Lisa, you’re unclear about whether it’s really right for you, let me help you get off the fence by sharing some of the best reasons for investing that I shared with her:
You call the shots
One of the best benefits of investing in real estate is the opportunity to call your own shots. As the boss, you determine whether you work part-time or full-time, and how, when, and where you do business. You also get to choose with whom you want to work, ensuring that you’re surrounded by the right mix of employees, clients, and colleagues whose goals are in line with your own. You have the kind of sovereignty over your professional life that, in my opinion, is worth more than most salaries.
Buying single-family homes as investment property is not without its risks, but learning to manage these risks can translate to other areas of your life. You will learn how to negotiate deals, delegate tasks, manage time, and supervise people in addition to gaining knowledge about a new field. And, like most entrepreneurial endeavors, many risks can be mitigated with the right training from the get-go. Add to that a supportive network, good marketing and valuation tools, and a way to find deals, and you’ll see your industry expertise shoot through the roof in no time.
Unlimited income potential
Additionally, as you gain knowledge about how to efficiently buy, rehab, and sell investment property, your earning potential will also increase. After all, flipping houses is a good business to be in. You may not see the kind of profit margins that reality TV implies are achievable on a single deal. But, with a lead generation strategy that finds motivated sellers on an ongoing basis and a solid work ethic to boot, you can build your business—and your bank account—one pretty good deal at a time.
You have an impact
There is a social impact to investing in real estate that can generate rewards beyond your bottom line. By buying older, run-down, “ugly” houses from homeowners who are struggling to pay their mortgages, keep up property maintenance, or handle other financially distressing life events, you’re offering a life raft. And, there is nothing quite as satisfying as seeing an individual, couple, or family get out from under the weight of a financial burden—and knowing you played a part in it. But, it’s not just their lives that you’re impacting. Flipping houses creates jobs, restores property values, and revitalizes neighborhoods. So, the community at large benefits from your work. Of all the advantages of investing in real estate, this is the one that tops my list.
A Word of Caution About Buying, Renovating, and Selling Houses
Of course, while there are many good reasons to start flipping homes, there are also reasons why you might want to proceed with caution. First, buying, renovating, and selling houses takes a certain appetite for risk. Though the housing market typically experiences fewer and less dramatic fluctuations than the stock market, investing in real estate still offers no guarantees. There is no salary to count on, no benefits package, and no possibility of moving up the ladder. Your financial future—and your reputation—are truly in your own hands. Now, that’s a plus in my book. But, it is a level of responsibility that shouldn’t be taken lightly—especially if you have a family that depends on your ability to provide.
Also, when you’re just starting out, it’s possible that you simply won’t see good returns on your first few investments despite what the market is doing. As a new investor, it’s just too easy, and all too common, to overpay on the purchase and rehab of a home just to get your foot in the door and a property in your portfolio. If you don’t plan for surprise expenses, neglect buying property insurance for flipping houses, or sell the home for too little, you could really be asking for trouble.
And, that brings me to one of the other issues with investing in property: it can be stressful. Not everyone is right for real estate because of the financial risks inherent in buying a house to renovate and sell and the emotional stress those risks can cause. But, if you’ve got a passion for the industry, like me, and an entrepreneurial spirit, like Lisa, you’ll have a chance of rolling with the punches when they come. With the right training, team, and tools behind you, you might even find you’re excited to do whatever it takes to achieve your goals.
Reaching for Your Real Estate Investing Goals
Unlike Lisa, I didn’t realize that being an entrepreneur fit me better than being behind a desk until I’d been sitting there a while. But, as I’m fond of saying now, it’s never too late to change the direction of your life—or the lives of others, for that matter. For me, investing in real estate gave me the opportunity to do both. And, becoming an independently owned and operated HomeVestors® franchisee improved my chances of succeeding at both.
As a HomeVestors® franchisee, I have all that I need to be the best real estate investor that I can be. When I first joined the team, I was initially trained on the HomeVestors® business for a week by the experienced and seasoned corporate team. Then, when I set out to open my doors, I got access to marketing tools—like the “We Buy Ugly Houses®” national ad campaign—that brings me leads from homeowners in financial distress who need to sell fast. When those deals come my way, I have other tools on hand, like HomeVestors®’ proprietary valuation tool, ValueChek™, to help me get all the numbers right, which helps to mitigate my risk and relieve my stress. And, if I still have questions or concerns, I have a network of local and regional franchisees I can call on for assistance. The combination of these tools and resources made my decision to become a professional real estate investor with HomeVestors® an easy one. Seeing the impact I’m making on the lives around me has made it a rewarding one, too.
If you’re still on the fence about buying a house to renovate and sell, contact HomeVestors® to discuss how to improve your chances of succeeding as a real estate investor today!
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