Welcome to the Fix and Flip Success Video Training Course. This course is primarily made up of videos I created to teach people the entire flipping process, including finding great deals, getting the right type of financing, knowing how to find good contractors, what to repair on a flip, and finally how to sell a flip. The videos were created specifically for this course and I have also included supplemental information with articles and additional resources. The whole course should take no more than 3 hours. By the end, you should be able to:
Flipping is an awesome business, but it is not as easy as it may appear on television. There are many costs associated with flipping that most people never discuss. This course was not made to make flipping appear as a glamorous, get rich quick business, but to show you how to make money in the real world.
You will find most of the information you need in the videos I created, but for those who like to read I have included links to articles. Below you will find links to introductory articles on flipping and what to expect.
Before we get started with the nuts and bolts of flipping houses. I want to talk about markets, and if you can flip in today’s real estate market. I have flipped in the good, the bad and the ugly, and made money in each market. Prices will also determine how easy it is to get started flipping.
It takes a lot of cash to flip houses. Getting financing is not as easy on a flip, as it is with personal residences or even rental properties. It will be tough to find any big banks that will lend on flips, but there are many other options available. This video gives an idea of how much money you will need to flip, and how I have my financing set up.
One of the biggest challenges for most investors is getting financing on flips. There are local banks that will lend on flips, hard money lenders and private money lenders. Before you plan to find any flips, you have to get your financing figured out.
The flipping shows on HGTV tend to show you the the costs associated with buying a house and repairing it. It is almost criminal how many other costs they leave out. There are carrying costs, buying costs and selling costs, that are sometimes more than the repair costs. The costs can also increase greatly if you do not allow enough time to finish the flip. It can take many months to get everything done and the house sold.
The point of flipping is not to make your lender, your contractor, your real estate agents money, it is to make you money. You have to make sure there is enough profit in the deal to pay all the costs and leave you with a profit. Investing in flips can be risky, the costs can escalate quickly, so you have to have a lot of profit built in to each flip. I like to make at least $30,000 on each flip I do that I buy for less than $150,000. I want the profit to go up, as the deal gets more expensive. The 70 percent rule is a great way to judge a flip deal.
Financing flips and knowing the costs, are extremely important when flipping houses. You also have to find deals, which may be the toughest part of flipping. It is not easy to find properties that have enough room in them to flip. If it were easy, everyone would be in this business. I get most of my deals from the MLS, but there are many ways to buy houses cheap.
There are many resources in the article below for finding off market sellers. There are companies that will create a website for you, send out postcards for you, and much more.
Buying a house and financing it are the first steps, the next step is repairing it. One of the most challenging parts of flipping, is finding great contractors. It takes time to screen contractors and find affordable workers. You can use a general contractor or subs. I prefer subs, but it takes time to build up a list of people you can trust and use.
Flipping houses takes a fair amount of work, because you are most likely selling to an owner occupant, who will get an inspection done. You will also be dealing with a buyers who is getting a loan and has to buy a house in fairly good condition. I have different strategies for what I repair on flips based on the type of house and the competition.
The flip is done, the house is ready to sell! On house flipping shows, this is where they have an open house and sell the home right away. It takes more work than an open house to sell a flip, and what they don’t show you, is most of the flippers are agents themselves and know how to market a property. I highly suggest always using an agent, and if you get into trouble on the flip, do not price it too high to make up for it.
Thank you for taking part in this training. If you have any questions email me at Mark@investfourmore.com. I also have some other coaching programs that come with conference calls and more material on rentals and business building if interested that can be found on my website
I have been a licensed Realtor since 2001 and have been a successful REO Agent for nearly as long. Today, I run a real estate team of 9 others, selling close to 200 homes a year. Additionally, I fix and flip 10-15 homes a year and own 15 long-term rental properties. In 2013, I started Invest Four More with the primary objective of providing information on investing in rentals as well as flips. From there, I also started writing and creating training courses for those interesting in investing in real estate.