Flipping Houses 101

No matter how much experience you have in real estate, you’ve probably heard of house flipping. “House flipping” is the process by which an investor buys a home, increases its value by rehabilitating and/or renovating it, sells it at a higher price, and earns a profit.

The house flipping market has experienced steady growth since bottoming out in 2009 at the height of the housing crisis. In 2017, average gross flipping profits and return-on-investment reached all-time highs, and over 200,000 single-family houses and condos were flipped in the United States. House flipping has also been popularized (and somewhat sensationalized) in recent years by reality television shows such as Flip or Flop, Flip This House, Property Brothers, and others, attracting tens of thousands of new investors to the space.

Since opening our doors in 2013, LendingHome has been providing financing, guidance, and knowledge to house flippers. LendingHome employees have themselves flipped hundreds of properties in their past and present lives. Using the knowledge we’ve gained from our projects, Flipping Houses 101 will cover what we consider to be the “6 Fs”: Find, Finance, Fix, Fill, Flip, and Fun. If you’re new to real estate investing, we hope FH101 will serve as a great introduction, and if you’re already an experienced flipper, we hope our guide to flipping houses will teach you a few things you may not have known.

Enjoy!