Questions to ask before investing in a company that flips houses

[Jemshed Mohammed]

I am venturing into investing in a company that buys and sells houses in Texas. I would like to know the type of questions to ask before I can invest money into the company. What are some of the novice mistakes that first-time investors make before investing in a company that flips houses.

Thanks,

Jay

[Ned Carey]

@Jemshed Mohammed

How many flips have you done?

How many flips have you lost money on?

How long have you bee doing this?

Get some specific property case study examples.

Get references - particular;y from the specific deals above. 

Ask the references for any other people they know of that has done business with the company.

Get bank references, Contractor references. Agent references from those that have sold their houses. 

research as much as you can to verify the information given. Property sales records for example. 

Recognize that real estate is very risky and flipping houses is one of the riskiest parts of real estate. Also recognize how easy it is to  be scammed in this business.