Bob, like most people, prefers the lower-risk, lower-investment alternative that overages provide. “And I’ll tell you,” he says, “with an overages business, you’re gonna sleep better ’cause you’re not obligated on a lot of loans, and you don’t have a lot of money out on any deal.”
Another advantage of overages is that it eliminates the need to deal with obnoxious contractors.
“Remember that the root of the word contractor is ‘con.’ Every renovation I’ve ever been involved with has gone over budget and over time. Overages deals do not involve any contractors, ever. And I think that’s a really good thing. How about you?” Bob continues.
Furthermore, overages are also advantageous to both parties. A lot of money is being made by helping former homeowners get back some of their belongings and their dignity.
House flipping, on the other hand, is all about the numbers. If you want to earn a profit, you’ll have to offer a homeowner 35% less than the actual market price. As it turns out, people find it difficult to accept the idea of earning a living this way.
Bob claims that overages are far faster than flipping. Overages provide you the flexibility to work wherever you want and whenever you want. And, on average, it takes just eight hours to complete a typical transaction.
If you are flipping a house, on the other hand, you must go inspect the property, negotiate, meet with contractors, observe their team, meet with brokers and purchasers, and be there at all times in order for the transaction to be completed successfully. In order to earn more money by doing less, Bob chooses to work smarter rather than harder.
The fact that you know exactly how much potential money you can make with overages is something he appreciates as well. Except for a few minor adjustments owing to claim processing fees, you already know how much money you’ll make before you even contact a single prospective customer.
In contrast to house flipping, it’s difficult to predict how much money you’ll make in the long run with any certainty. Renovation expenses that were not anticipated, as well as fluctuations in the market, add an excessive number of variables to the equation.
You invest your funds in a project and hope for the best. To recap,” Bob says, “the overages business features a low cash investment, no loans, no contractors or renovations, you work from home, and you know your profit going in.”
“In the house flipping business, you have to make a large cash investment up front. You have to clear out your savings or take out a big loan to get the property and renovate it. You deal with contractors and unpredictable renovations in terms of both cost and time.
You need to be on the work site to make sure things are going well. And you have uncertain profits. In my view, overages are clearly the winner. And I think you’ll agree with me,” he says. Do you agree? Or do you believe he was overly pessimistic about house flipping? Or maybe he’s just showing favoritism when it comes to overages?