Flipping Houses Risk?

[Marc Possoff]

Hi I’m new to the forum and posted before in another topic. 

We own a house and a lot in Philadelphia. Met with a realtor last week to discuss renting out the house and selling the lot. The realtor strongly suggested and encouraged to use the proceeds from the sale of the lot to start and buy houses that don’t need much work and flip them for a profit. 

I never considered this but became somewhat interested. 

The proceeds from the lot are expected to be $50k net. I asked ‘if I’m going to do this how will I do this with $50k?’ and won’t I be competing against others investors?’

She explained to me that my competition with be average Joes like myself not bonafied developers. She said with $50k to put down on a house is pretty good and / or take a portion of the $50k and use to fix up the house.

The house that we own she said is perfect for what she’s talking about  doesn’t need a ton of work just enough to flip cause it’s livable  

Then I asked ‘how is it possible to buy a house for a price to make a profit?’ She said there’s plenty out there and she will help’. 

My concerns were the risk. She said of all the things out there to make money flipping houses she feels is the best and she says not really much risk  

Can anyone shed some more light on this? Wasn’t expecting or considering doing this until she mentioned it. I’m kind of skeptical because since she said she could help of course there’s something in it for her which is commissions. 

Giving more info we are in Philadelphia Pa.

Thanks!

[Thomas S.]

She is a real estate agent drumming up business, she is not a flipper. When you study and learn your market and everything about house flipping you will then have the information necessary to succeed that she does not have.

She will have no skin in the game, you will be taking all the risk.  Never trust others.