House Flipping Thread

[Nikki_04]

i always wanted to flip houses, but i think the housing market it so out of control now that its only a dream

 

[The Don]

Hmm. . . some real jewels being dropped.

So what do you do if you have more than one investor into a property? Just a question outta curiousity

You definitely want to determine the percentage of profit that each is getting and write up a contract.

 

[mson]

 

[yakamein]

Have anyone here done wholeselling?

 

[HacksawJimThuggin]

Just saw that this was upped... I actively wholesale and flip, so I'll gladly answer any questions you guys have.

The biggest thing: FIND THE PROPERTIES. If you can figure that part out, you can be rich in a relatively short amount of time. The rest is easy.

Put up signs, make business cards, search public records, cold call, etc. there's a million different ways to identify properties that are distressed and under valued.

 

[mson]

Just saw that this was upped... I actively wholesale and flip, so I'll gladly answer any questions you guys have.

The biggest thing: FIND THE PROPERTIES. If you can figure that part out, you can be rich in a relatively short amount of time. The rest is easy.

Put up signs, make business cards, search public records, cold call, etc. there's a million different ways to identify properties that are distressed and under valued.

How many have you flipped?

 

[yakamein]

Just saw that this was upped... I actively wholesale and flip, so I'll gladly answer any questions you guys have.

The biggest thing: FIND THE PROPERTIES. If you can figure that part out, you can be rich in a relatively short amount of time. The rest is easy.

Put up signs, make business cards, search public records, cold call, etc. there's a million different ways to identify properties that are distressed and under valued.

How long did it take you to get proper presentation down for the cold calls? I don’t have much capital, so I’m looking to take this route until I have enough to invest in property.

 

[HacksawJimThuggin]

How many have you flipped?

Not many at all. Reason being, I quickly found out that although the margins are definitely larger if you keep the property and do the actual renovation and then sell it, that takes a LOT of work and more importantly, time. Plus, once you add in the cost of a hard money loan to fund the purchase + renovation, closing costs, real estate commissions, etc. the margin is considerably less than you might think. If you're going to do the work yourself, it's great; however, I run multiple businesses so I wasn't able to oversee a crew of subcontractors full-time so I had to have a GC on site. All these things cut into that original amount that you think you'll be making.

For me, I found wholesaling to be a lot easier- even though the money on a per deal basis is less, it's easier to scale and you're not having to put up capital or take as many risks. Particularly for me, because I couldn't make flipping a full time thing. Admittedly, being a real estate attorney and owning a title company, I don't have to do much to get the actual deals- it's usually transaction that I'm handling that fall apart for whatever reason (Buyer not knowing how to negotiate down code violations, Buyer's financing falling through, etc.), but for most people they just treat it like a numbers game and make calls/offers knowing the success rate is low, but still well worth it. I work with investors who do 5-7 deals a month and make anywhere from 5k-15k per deal, sometimes more, so there's a LOT of money to be made once you have systems in place.

 

[HacksawJimThuggin]

How long did it take you to get proper presentation down for the cold calls? I don’t have much capital, so I’m looking to take this route until I have enough to invest in property.

I've been lucky enough to never have to do it. However, I have clients that do. I'm sure there's scripts that you can find online which include proper questions and rebuttals, but typically the Seller doesn't need much actual selling, they just need to feel comfortable with the process. They're typically in a position where they're about to lose their property for nothing and it's going to negatively affect their credit, so if they can get some cash to at least move out the property and put down a deposit on an apartment or something, it's a no brainer for them - but they need someone who can explain that properly.

 

[mson]

Not many at all. Reason being, I quickly found out that although the margins are definitely larger if you keep the property and do the actual renovation and then sell it, that takes a LOT of work and more importantly, time. Plus, once you add in the cost of a hard money loan to fund the purchase + renovation, closing costs, real estate commissions, etc. the margin is considerably less than you might think. If you're going to do the work yourself, it's great; however, I run multiple businesses so I wasn't able to oversee a crew of subcontractors full-time so I had to have a GC on site. All these things cut into that original amount that you think you'll be making.

For me, I found wholesaling to be a lot easier- even though the money on a per deal basis is less, it's easier to scale and you're not having to put up capital or take as many risks. Particularly for me, because I couldn't make flipping a full time thing. Admittedly, being a real estate attorney and owning a title company, I don't have to do much to get the actual deals- it's usually transaction that I'm handling that fall apart for whatever reason (Buyer not knowing how to negotiate down code violations, Buyer's financing falling through, etc.), but for most people they just treat it like a numbers game and make calls/offers knowing the success rate is low, but still well worth it. I work with investors who do 5-7 deals a month and make anywhere from 5k-15k per deal, sometimes more, so there's a LOT of money to be made once you have systems in place.

The investors make that much?

 

[Astroslik]

Not many at all. Reason being, I quickly found out that although the margins are definitely larger if you keep the property and do the actual renovation and then sell it, that takes a LOT of work and more importantly, time. Plus, once you add in the cost of a hard money loan to fund the purchase + renovation, closing costs, real estate commissions, etc. the margin is considerably less than you might think. If you're going to do the work yourself, it's great; however, I run multiple businesses so I wasn't able to oversee a crew of subcontractors full-time so I had to have a GC on site. All these things cut into that original amount that you think you'll be making.

For me, I found wholesaling to be a lot easier- even though the money on a per deal basis is less, it's easier to scale and you're not having to put up capital or take as many risks. Particularly for me, because I couldn't make flipping a full time thing. Admittedly, being a real estate attorney and owning a title company, I don't have to do much to get the actual deals- it's usually transaction that I'm handling that fall apart for whatever reason (Buyer not knowing how to negotiate down code violations, Buyer's financing falling through, etc.), but for most people they just treat it like a numbers game and make calls/offers knowing the success rate is low, but still well worth it. I work with investors who do 5-7 deals a month and make anywhere from 5k-15k per deal, sometimes more, so there's a LOT of money to be made once you have systems in place.

What do you mean by “wholesaling” ? (I’m the real estate sense)

 

[HacksawJimThuggin]

What do you mean by “wholesaling” ? (I’m the real estate sense)

Take a look at my quoted post at the beginning of the thread that talks about simply finding the properties, getting them under contract, and then assigning the contracts to an end buyer for a profit.

 

[yakamein]

I've been lucky enough to never have to do it. However, I have clients that do. I'm sure there's scripts that you can find online which include proper questions and rebuttals, but typically the Seller doesn't need much actual selling, they just need to feel comfortable with the process. They're typically in a position where they're about to lose their property for nothing and it's going to negatively affect their credit, so if they can get some cash to at least move out the property and put down a deposit on an apartment or something, it's a no brainer for them - but they need someone who can explain that properly.

What tools are you using to find these sellers?

 

[desjardins]

What do you mean by “wholesaling” ? (I’m the real estate sense)

Wholesaling is middle manning
I'm giving hacksaw the benefit of the doubt but it's some shady wholesalers out here
Selling properties they don't own, etc.
You can whole sale without having any money actually, if you find a property and find a buyer you middle man the transaction get your profit and skate

 

[desjardins]

So did any of yall flip houses since the thread was made?
My main issue is finding GC I can trust and of course finding properties where the numbers work.
I'm thinking about just buying a house via traditional means and just renting it out so I can start building a portfolio
Looking for undervalued properties, you are completing against dudes who do it all day long and likely have cash to buy quickly (I'd have to get hard money loan)