How to Fix and Flip Houses | Beginner Real Estate Investor Special
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The video discusses the reality of flipping houses and the three main ways to invest in real estate: fixing and flipping, wholesaling, and owning and holding rental properties. Flipping houses involves the biggest risk, and to successfully flip a house, the first step is to acquire it at a discount. The Max Allowable Offer Formula can help determine the appropriate discount by calculating the after repair value (ARV) of the house, subtracting the repairs and holding costs, and multiplying the result by 75%. Renovating the house can be done by doing all the work oneself, hiring it all out, or a combination of both. It is important to consider one's skill set and available time to avoid delays in the rehab process. To sell the flipped house, it is recommended to work with a good real estate agent who has experience working with investors and knows how to structure deals. Once the house is sold, the investor will receive the check after closing. Streamlining the flipping process is important to make the rehab go quicker and to have a better understanding of what the house will sell for. It is also recommended to join local real estate investing Facebook groups and meetup groups to find discounted houses and good contractors, and to subscribe to the channel for more information on real estate investing.
The video discusses the reality of flipping houses and the three main ways to invest in real estate: