Have you taken a look through the television stations lately? If so, you will quickly notice a plethora of shows featuring home improvement, real estate investing, or some sort of combination of the two. From shows that teach people how to sell homes in disrepair, to shows that teach viewers that it is possible to purchase, repair, and re-sell a home in a matter of weeks for profit. There are even shows that appeal to the entrepreneurial wannabes in audiences around the globe.
Fortune and Fame – Attainable?
These shows have made and lost fortunes a few times over for many with high hopes. How? By convincing viewers that they, too, can do the wondrous things seen on television. The truth is, many viewers are capable of doing these things, but television never really shows how hard the work actually may be. The television cameras do not always show the blood, sweat, and tears that go into making these projects successful. Even more rare is a mention of the countless failures that occur along the way.
The cameras are also not accurate time keepers. Rarely do they show the renovator showing up at 4 am and rolling out well after midnight. They don’t show the heart attacks and nightmares as credit cards are going dangerously close to being completely maxed out while dreams of quick riches fade right in front of investor’s eyes.
This does not mean that every project is doomed to failure. It’s just a reminder that things are not always as rosy as they may appear to be. Flipping houses may seem to be a bit glamorous and very hands on. The problem with that is that too few people really realize how much work goes on behind the scenes and by other people not shown. This is not easy money no matter how much the television cameras would like to convince you otherwise.
It is very possible to turn a substantial profit in a relatively short amount of time. You will need to be able to keep your cool, use your head, and buy and sell in the right conditions. A big problem is that so many people do not consider the big picture. Often, they find themselves in over their heads and out of money before the project is anywhere near completion.
So What Has Television Done?
One thing that television has definitely done for this line of work is make competition a little fiercer. The early bird in this business gets the worm. While the cheapest house isn’t always the best candidate, the less competition you have driving the prices up, the better in this situation. The goal is to buy low and sell high.
Most people do not have a terrible amount of competition, as of yet, on the selling high portion of the program. Where is the real trouble at this point in time? The buying low. There are many more would be “real estate investors” that are interested in buying the inexpensive properties than there are that will actually see the projects through from beginning to end.
So yes, television has greatly changed the way people invest in real estate. Whether this is truly good or bad for the overall real estate market remains to be seen. This is still one of, if not the best, way to make a large sum of money fairly quickly that is legal in the world today. Fortunes can be made and lost in real estate. The trick is always in placing your bets on the right property at the right time. For those who are willing to take the risks associated with this type of investment and those that are willing to wait for a slight upturn in the market, the profit potential is phenomenal.