Real Rehabbing vs. Late-Night TV Ads

FORT WORTH, Texas - Dec. 12, 2013 - PRLog -- The late night TV ads show the simple process: find a distressed property, fix it up, sell it.  Bingo!  It’s all done and cash in the bank.

Tim Cook, a successful investor in his own right is concerned that the newcomers to the industry will get in serious trouble.  The main problems as he see’s it are:

1. Lack of understanding of the business from A to Z

2. Lack of understanding of the cost of money

3. Lack of knowing their own personal goals and direction for the business

4. Lack of planning (putting pencil to paper and calculating what the project requires –including all that could possibly go wrong)

If an individual is dealing in buying and selling stocks it’s fairly easy to unload stocks.  It’s different with a piece of real estate.  Once you make the purchase, you are stuck with it until it sells.

There are many investors out in today’s marketplace scooping up the many distressed properties that are available and flipping them and making a good profit.  Most would never think about doing the renovations themselves. They are wise enough to have a reputable contracting crew ready to jump in and make it happen.

They have a long list of eager, ready buyers and never have a problem moving the property.  Some have their rehab properties sold before the project is completed.

While the late night infomercials lead you to believe how easy it is, they should be mixed with a strong dose of reality.

Tim sees the key to profits in flipping / rehabbing distressed properties as the time element.  The work should be completed as quickly as possible at the best price possible as should the resale of the property.  Only then will the business see growth and become successful.