Lots of people watch those house flipping shows on HGTV and think, “Hey, I can do that. How hard can it be?” HARDER THAN YOU THINK, CHIP!! Successful house flipping is not only hard, it can be expensive and risky. There’s no quicker way to lose every cent you have and find yourself neck deep in debt. So before you jump out there and buy some old house to flip, heed these words.
It’s hard to break the news to a client when their home is underwater, i.e. they owe more on the home than it is worth. There’s not much they can do except keep making the payments and hope someday the tide turns, or sell it for a loss, which no one wants to do.