Flipping A House

by Dotson Skaggs 10/20/2019

You can make money by investing in real estate. One way you can do this is by flipping houses. Flipping a property refers to when you buy a house to sell it for profit. The purchase is a short-term investment that requires much planning as it could be quite dicey. Buying a home to sell is a great way to make money, but it requires skill, careful consideration, research, and sometimes pure luck. No matter what kind of property you decide to invest in, there are many things to consider when you are getting ready to start flipping houses.

There are two main types of house flipping:

- A real estate investor purchases a house that could potentially increase in value if repaired and updated. After completing the renovation, the investor makes money from selling the home for a higher price than the total cost of the purchase and improvements.

- A real estate investor identifies an undervalued property in the market in a neighborhood with fast-rising home values and holds the property for some time until the house has a higher value. They then resell the house profitably.

Common types of property to flip

- Single-family houses: These are the most common types of homes to flip. These include bungalows, semi-detached houses, townhouses, and freestanding homes. They are the easiest to buy and sell as they are most readily available.>

- Multi-family residences: You can renovate the existing units or add more units to the property to make it more attractive to buyers.

- Retail properties: You can buy a property and restore it to make it suitable for specific use as a restaurant, bar, or store.

- Land: This is the most difficult as there are more processes involved and building on a new property is more expensive than renovating an existing one.

Benefits of house flipping

- You have a significant level of control over many elements of the project through research and analysis

- You can flip any house as long as it fits your needs and requirements.

- The team you hire can significantly influence the success of your flips like an experienced real estate agent, an interior decorator, and a reputable contractor.

Disadvantages of house flipping

- You might lose your money if you don't get all the expenses right or you run into unexpected costs

- Sometimes you have to pay capital gains taxes when you sell a house.

- You may end up spending more than you should on a home if you misjudge the neighborhood.

If you are looking to start investing in real estate, flipping houses is a great way to start. Speak to a real estate agent and an experienced contractor to begin.

About the Author
Author

Dotson Skaggs

Living in Denver continuously since 1960, Dotson has witnessed The Mile High City mature to become one of the nation’s top metropolitan statistical areas.  As one of Denver’s elite real estate salesman with 2,000+ homes sold and $600,000,000+ in sold volume, Dotson is annually one of the top 15 agents out of 5,000+ members with the Denver Metro Association of Realtors.

     Based on the principles of service, professionalism, and our Realtor Code of Ethics, Dotson sponsors and donates his time to numerous community service projects such as dumpster day, shredding day, a community garage sale weekend and a neighborhood young entrepreneur’s career fair.  Dotson also distributes American flags to neighborhoods for the Fourth of July, helps sponsor a neighborhood picnic, prepares and distributes HOA directories to various communities and sponsors a neighborhood annual photo session with the Easter Bunny.  Dotson also serves his fellow Realtors by volunteering on the Denver Metro Association of Realtor’s Professional Standard’s (Ethics) Committee.

     To better serve his clientele with the principles outlined above, Dotson left his own independent real estate company after 22 successful years and joined the nationally acclaimed Kentwood Real Estate in 2005.  Dotson has been blessed with the opportunity to serve countless homeowners and buyers with their individually unique and diverse needs.

     In addition to real estate, Dotson’s passions are spending time with his growing family, working out, playing golf, reading and observing the political scene.  He dreams to one day possess a golf game which is commensurate to his real estate career.  However, Dotson is also known to be overly optimistic when it comes to his golf game.

Dotson’s Favorite Quote is:  “Never Give Up.  Never Give up.  Never.  Never.  Never.”            Sir Winston Churchill (1941)

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A BRIEF SUMMARY OF DOTSON'S CREDENTIALS AND REAL ESTATE EXPERIENCE:

Over 30 Years of Real Estate Experience in Negotiating the Sale, Purchase and Leasing of Property (20 Years Broker/Owner) 

Over $600 Million in Sales Volume 

2,500+ Homes Sold in the Denver Metro Area

2014, 2015, 2016 & 2017 Wall Street Journal - Top 100 producing agents in Denver Metro Area

2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016 & 2017 Kentwood Champion’s Club Recognizing Over $17 - $31+ Million of Annual Sales

2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016 & 2017 Denver Metro Association of Realtors Gold Roundtable of Excellence Award with $17 - $31" Million of Sales Volume 

Prestigious Certified Luxury Home Marketing Specialist Designation

Member of the Colorado Association of Realtors’ Ethics and Professional Standards Committee for the Past 25 Years 

Member of National Association of Realtors

Member of Colorado Association of Realtors

Member of Denver Metro Association of Realtors

Member of Denver Metro Area Multiple Listing Service

     In addition to possessing a true love for assisting homeowners and buyers with their real estate needs, Dotson is just as devoted to his family's needs. In his leisure time, Dotson enjoys activities such as snow skiing, golfing and camping in the beautiful Colorado mountains.  Dotson has also contributed to the Denver Metro area community by being an active supporter in many local groups and charities. He served in the Big Brother's organization for 10 years and has supported and contributed to the American Zang Foundation. This organization provides assistance for low-income and minority students in locating, applying for and obtaining college scholarships.

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OVER 30 YEARS OF TRUST AND EXPERIENCE

SERVING THE ENTIRE DENVER METRO AREA

  • MBA, BS, CRS, GRI, ABR, CDPE, LHMI, MCNE
  • Top 10 Brokers - Denver Board of Realtors
  • Top 15 Individual Sales - Denver Board of Realtors
  • Top 10 Transactions - Denver Board of Realtor
  • More than $500 Million Career Sales and 2,500 Transactions

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EDUCATION

  • Masters of Business Administration - Marketing
  • Bachelor of Science-Business/Land Management