House Flipping

King of Real Estate in Erie, PA Laban Marsh, Entrepreneur Extraordinaire Nedvonne Young, owner of FreshFold Laundry Co in Chapel Hill, NC are back for a new episode of the best business show around, Broker Than You.

We received a lot of feedback from last week about the Kouri Richins trial going on in Utah right now. She got into real estate and dug herself into major debt which allegedly led to her motive behind.... well, you can look it up.

The guys discuss house flipping, which has grown exponentially in popularity. People watch shows on TV and it looks so easy, a great way to make money.

When things sound too good to be true, most likely it's not. Laban and Nedvonne talk about the process that goes into actually making money off a flip. Laban basically said it can be like putting lipstick on a pig. Nedvonne said it is paramount to know the Real Estate market you are in, the regulations, and fluctuations from the past. From the second you purchase a property, both stress spending as little as possible, then immediately starting renovations.

Putting the house on the market as quickly as you can is important. Laban mentioned some people will list the property as renovations begin. Nedvonne added houses can sell before everything is fixed. The guys stated if one thing goes wrong, it will have a domino effect throwing off the timeline completely.

Hypothetically, if certain materials can't be purchased, or the flooring person is taking longer to finish his job, which means the walls can't start being painted, these issues change everything. A property purchased at a phenomenal rate loses value when a flip goes longer than expected, the market fluctuates, and your profit margin just took a hit.

The guys prefer to buy and hold, Nedvonne, as an investor, Laban, selling property he owns, take this approach to maximize value. Laban also mentioned renting the property until the market improves. A banner episode!