Tarek El Moussa is a veteran home renovator-and-reseller, so despite the fact that 2018 saw a dip in returns on house flipping, his business continues to succeed. But how? With such a busy schedule, it's hard not to wonder where the Flip or Flop star—who will also be starring in his own show on HGTV coming soon—finds the time.
Once, he d in a recent CNBC interview, he even flipped 74 houses simultaneously. "I can tell you right now that was very, very stressful," he chuckled, adding, "Right now, I think I have 29 flips going, which is less than 74, but my profitability is probably the same, because it's a lot easier to manage that many houses...and there's a lot of costs involved."
It takes a lot of brains (and guts!) to flip a home and know exactly what you are doing. For Tarek, there are certain things he always does before, during, and after a project. Here are three tips I've gathered from what he s of his own flipping success:
1) Study the market before you invest.
"In general, the house-flipping market is changing, and as an investor, I need to study the market," Tarek points out. This allows him to not only prepare for future flips, but determine when it's best to sell, since the housing market changes so quickly. "I'm getting ready for tomorrow while still focusing on today."
2) Ask yourself "What is this home going to sell for?"
"Just because a house is a piece of junk doesn't mean it's a good flip," he emphasizes, "So it has to be at the right price." If you're overpaying for the house to begin with, it's much harder to turn a profit once you invest time and money into it. Tarek wants you to remember: "You never make your money when you sell—you always make it when you buy, and you've got to buy right."
3) Buy less expensive houses to get jobs done quicker and risk less.
With smaller, less expensive houses, you get in and out quicker. Because of this, you risk less, because timing doesn't work against you and the fluctuating market.
Watch the full interview on CNBC here:
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