Do homework before going to house-flip seminars

House flipping has become increasingly popular, especially as the real estate market picks up and with many television shows highlighting this opportunity.

Successful house flippers can make high profits, but there is extensive work necessary to renovate and prepare homes for flipping.

Some consumers opt to attend house-flipping seminars to learn more about the entire process prior to starting the work; however, before you invest in house-flipping seminar, do your homework.

Make sure you understand what you are getting into with this type of program.

This business model is more complex than it appears; there is no legitimate way to “get rich quick.”

Typically, during the initial free seminar, attendees often will be urged to purchase high-priced books, CDs and DVDs, and to attend a costly second or third seminar in order to further their education and actually learn how to make a profit.

The Better Business Bureau of Greater Houston and South Texas offers the following information to consider before attending a seminar and provides general tips on house flipping to consider:

• Check out the seminar. Research the business by searching online and checking BBBHouston.org to examine the business’ complaint history and customer reviews.

• Examine the total cost. How much will the seminar really cost you? While the initial seminar is free, additional seminars and training materials can cost thousands of dollars.

• Watch out for high-pressure sales tactics. Take the time to carefully research the opportunity and don’t sign a contract until you understand all terms.

• Get everything in writing. Check out the refund policy and be sure to get all promises in writing. Be wary of any oral promises that are not in writing. Ask for references and contact them before entering into an agreement, and pay by credit card whenever possible in case you need to challenge the charge.

• Consider the expenses involved with house flipping. Many inexpensive homes on the market have been empty for long periods of time or may have been vandalized, which will make for costly repairs and will make it difficult to sell quickly.

• Research the tax and repair history of a home before purchasing it. Use a reputable home inspector if necessary. If you purchase a home with violations, you could face fines or criminal penalties for failing to fix them, so it is important to examine these issues in advance and work with a reputable realtor or real estate broker when buying or selling the home.

• Stick to a budget. Be sure to budget for the appraisal, filing fees, insurance, taxes and maintenance of the house until it is sold.