You want to know how to flip a house? I love to see flippers taking time to actually think through both the process and design of a house! Unfortunately, most flippers just throw some beige paint on the walls then call it a flip. I’m a strong believer and living proof that in order to be a successful flipping business, one must always consider custom ideas and branding. Once you learn how to flip a house, the sky’s the limit! What I am about to share with you comes from my decade-long experience in high-volume flipping. I’m a full-time real estate investor. I do not do this part-time or as a side-hobby. I’ve given 100% of my energy and efforts to real estate investing for the last 10 years. I have completed well over 300 flips in my career – 100 of those just in the last 18 months. The ARV’s for my investments range from $100k to over $2million. As I type this, I currently have 16 different flips in 3 different states ranging from $150k to $1million. Why do I tell you this? It’s not to brag. Far from it. I say this only so that readers understand that my advice comes from real world experience, not something I’ve read or heard. Real estate investing is my life, every day, 24-7. Hopefully, you’re able to sift through faulty advice from many who love to merely pontificate as to how good they are or how much they know! I love to share my extensive knowledge to other investors. Most flippers paint the exterior beige with bright white trim. That’s your most common exterior, unfortunately. Then you step inside and see the real magic. (insert sarcasm!) The investor decided to get “wild” with the interior paint color – they went with beige walls and bright white trim! Groundbreaking, I know! Then to really mix it up and throw you a curveball, they go with a sexy beige tile in the bathrooms and some ritzy beige carpet in the bedrooms! (inset even greater amount of sarcasm!) In reality, they have spent no time, thought, or effort into what their potential CUSTOMER WANTS! They choose that simple, boring design because it’s inexpensive and easy to accomplish. Obviously, this can be quite annoying to more experienced, custom flippers! In order to be a successful flipper, one must get inside the mind of your potential buyer. Meaning – do you think that your potential buyers watch TLC or HGTV or DIY? Of course they do, and they see what those custom designers put inside of those flips. They decide mentally that this is what THEY want in THEIR next house. (or a concept like it) Instead, flippers provide them BEIGE! Understand that many years ago, this beige concept was good, but over time, styles change, markets change, and the things...
Read More »
As a new real estate investor, nothing is more nerve racking than buying your first property. It’s taking that first big step down a new and exciting career path. I can tell you that once you get your first deal, you’ll only want to get more. However, before getting that deal, there are three major things to consider. These three factors are a very important part of planning what exactly you are going to do after buying your first property, and require careful consideration. 1. What is your end goal? Having a plan and goals are as important when buying your first property as it is for every property after that. However, the process when buying your first property sets the bar for all the ones that come after. Ask yourself “what do I want to accomplish“. Is there a certain amount of profit you want to make? Is there a specific date that you want your repairs to be done by? Maybe you just want everything to go smooth. Don’t worry about what the “latest and greatest” method or strategy is. Do your homework and figure out what goals fit your business model. Whatever goal you set now will help you how to deal with similar situations in the future. Without having any kind of end goal, you can’t put together the steps to achieve one. Creating an end goal lays the foundation for everything that comes after, like creating a strategy and putting your team together. Set an end goal Don’t worry about the latest and greatest Use your goal to develop steps to achieve that goal “Success is where preparation and opportunity meet.” -Bobby Unser Click To Tweet 2. Know your exit strategy! Before buying your first property, you need to have a goal in mind for the property. Before you make the offer, you need to set an expectation. Know your exit strategy! What do I mean by exit strategy? If you are going to take the time to repair the house and sell it after, your exit strategy is to flip and sell the house. If you are going to turn a quick profit on the house then don’t plan on any repairs, plan on wholesaling. Flipping and wholesaling would be your exit strategies. Both require different pricing and planning, but both are examples of exit strategies. In addition to a main strategy you’ll want a “ripcord” strategy. You’re buying your first property! It’s worth having an extra strategy. If your main strategy is to flip a house and sell it, and your house doesn’t sell, consider selling it at a deep discount your emergency strategy. Let’s say you want to fix your new property and rent it. Your “ripcord” strategy should be to sell it and move on to the next deal. Limit yourself to only two strategies and...
Read More »
Professional wholesalers are huge players in the real estate market. As a real estate investor, professional wholesalers can play big role in keeping your business stable. Being a professional wholesaler is a full time tactic. All they do is buy and sell properties. This post will focus on the four best ways to work with professional wholesalers and how it can greatly benefit your business. Get on their “A” list If you aren’t on a professional wholesaler’s “A” list you could be missing out on tons of great deals. Wholesalers normally have a very short list of investors that they call before trying to reach out to new investors. This means that if you aren’t at the top of the list you’re getting the leftovers. Deals that might not net you the amount of profit that you would like or would require you to keep your resources tied up for longer than you want. The bottom line is if you want to fortify the structure of your business and have a place to get properties when you can’t get the number of leads you want, you need to be the first person your wholesalers call. How can you get on a professional wholesaler’s “A” list? Build a relationship with them! Build a relationship with a professional wholesaler I always say that real estate is a relationship business. To be successful in this business you have to constantly create and grow new relationships. The relationships that you build with professional wholesalers are among some of the most important. Understanding the need to get on professional wholesaler “A” lists is step one of building the relationship. Step two is making the effort to build that relationship. If you can’t take out your phone, go down your contact list and call a hand full of wholesalers then you have a lot of work to do. Whether it is Craigslist, a Google search, or a bandit sign you saw on the side of the road, start calling wholesalers. Once you put together a list of wholesalers you need to keep in touch with them. Call them once a week and see what kind of properties they are holding. You might be surprised! A professional wholesaler normally has a stock of properties that would make great investment opportunities. Even if you’re not buying properties, stay in touch with them. Take your wholesalers to lunch every once in a while. A personal sit down like lunch is a great way to learn more about a person and the type of business they run. More importantly, it gives you the opportunity to build a stronger relationship. It’s one thing to regularly deal with somebody over the phone. Putting a face and a personality with a name will only benefit your working relationship. Build a list of professional...
Read More »
What is the best way to sell your flip fast? The answer to that question will always vary depending on your situation. This week I’ll be covering some proven tactics that get flips sold quickly. These can be used in conjunction with one another, or you can choose one that fits your system best and implement it. Whatever method you choose to use, you will see results! Make your house the best on the market The real estate game is highly competitive. Buyers are always looking to get the best value for their dollar, and investors are always trying to outdo one another. In order to sell your flip fast you need to have more “wow” factors than your competitors and the right price. Pay attention to your competitor’s pricing and what updated features their houses offer. If you are just beginning a flip this will give you an idea of what to plan for. If you have completed a flip, researching your competitors could help you figure out if your house is lacking anything. Always take the extra step to make sure your house is the best value for the price. Whether it is spending more to get hardwood floors instead of carpet or taking extra time to make sure you’ve got the landscaping done, taking the extra steps to make sure your house is the best house for your dollar value eliminates your competition. Know what your buyers want Pay attention to your competitors Going the extra mile eliminates competition Get your house listed It is no secret that listing your flip is a fast way to get it sold. 88% of home buyers purchase properties through an agent. Sure, you’ll have to pay a commission, but isn’t it worth it to sell your flip fast? Cutting out agents is a bad idea. Sure, you can keep some extra money in your pocket for the time being, but what happens if your flip doesn’t sell fast? You’ll end up paying more in holding costs than if you would have just paid an agent to list your house. You may be great at marketing and can get your house sold in no time, but listing your house with an agent is a proven way to sell your flip fast. You’ll be exposing yourself to the majority of buyers looking for a new home and you don’t have to worry about marketing! 88% of buyers use an agent Not using an agent is really expensive You won’t have to worry about marketing with an agent Create an atmosphere Staging your house can really influence buyer’s decisions. It’s like providing them with a sneak peek into the future! Sure, when a buyer walks into a house they can use their imagination to picture themselves there, but why not give them some...
Read More »
