Fixer-Uppers - An investment or a business?

I get that question a lot.
Usually the question is not as direct, but more of a subtle, "Hey, I want to make a lot of money quickly in the real estate investment business. I've heard that you can do that with fixer-uppers. Can you find one for me where I can make a quick $10-50K"?
The short answer to the question is, "ain't gonna happen". The long answer is, "Well, if you're real handy and have established relationships with contractors who are, in addition to yourself; have a lot of excess time on your hands, are an exceptoinally good business person, or have a partner who is and will take care of all of the extensive bookwork involved; have good to excellent credit and have more than adequate reserves on-hand to fund the carrying costs (while you wait for the property to sell), then you might be a candidate to consider buying a fixer-upper". However, it would really much better if you were a full-time contractor, i.e. a professional flipper. This business is not for the faint at heart and it is definitely not a trivial undertaking. Can it be done, sure. Does it always result in success? No. It probably results in failure more often than success, and here is why.
A dentist spends three to four years in professional training before they are ever unleashed on the public to fix teeth. A doctor can spend six years to eight; a neurosurgeon can spend 8-10 years in training, before they are considered capable to perform standalone in their trade. And, in the flipping business, you can make as much or more money than any of these. Do you think this will just come naturally? I'm sure you don't but many do.
Yet, with housing, we all live in something like a house, and we look at the walls, floors, ceiling, sinks, toilet, electrical outlets, etc. every day, and some of us wake even spend a little time with a hammer and nails, yet just because we have had "exposure" to what looks like a good house does not mean we are qualified to take a sow's ear and turn it into a silk purse. (And, don't believe those informercials! What are doing up watching those any how. Get back to sleep!)
Instead of watching infomercials, or even listening bery long to me, I highly recommend the book by Bill Bronchick - Flipping Properties - before you consider "investing" in your first flip house. (That's flip house, not flop).
Here is a link http://www.amazon.com/Flipping-Properties-Generate-Instant-Profits/dp/0793144914 and another http://www.abebooks.com/servlet/SearchResults?sts=t&an=bronchick&y=6&x=10
If, after you've read one of these and you're still interested in finding a fixer-upper in Des Moines, or surrounding suburbs, give me a call. I'm not opposed to working with the legally insane as your bird dog, representing you as your buyer's agent.
We'll need to establish a few ground rules first, so that we don't waste each other's time, but if we can get beyond those, then we can have some fun in the hunt. All I'll expect in return is the listing on the other side, should you choose to employ a Realtor (and, if you're a flipper and you don't employ a Realtor, you won't be a flipper for long -- I guarantee it!).
If that sounds fair, you've read at least one of these books, and you're still interested in a hunt, then email me. We'll meet and then make a decision whether there is a basis for further discussion. Finding a needle in the hay stack can be tough, and a good flip candidate is a needle in a hay stack, but they are out there.
Oh, did I happen to mention that flipping houses is a business, not an investment? I hope after all of that I did manage to convey that message. Party on, flipper ...

by Andrew Lietzow, MBA - Iowa Realty