You Will Fail As a House Flipper Unless You Do These 4 Things
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The video discusses the misconceptions surrounding house flipping and provides a step-by-step guide to successfully flipping houses. The speaker emphasizes that while flipping houses is not overly complicated, it requires four key components: finding a distressed property, finding a lending source, finding contractors, and finding an agent to maximize profits. The speaker warns against over-rehabbing a house and emphasizes the importance of finding a middle ground to make the house nicer than the surrounding neighborhood, but not too nice that it becomes overpriced.
To find the right distressed properties, the speaker recommends starting with wholesalers, driving around and taking pictures of "we buy houses" signs, attending local meetups, and getting involved in the real estate investing community. For finding a lending source, the speaker recommends using a home equity line of credit (HELOC), private lenders, or hard money lenders, and advises against using traditional banks.
To find contractors, the speaker recommends getting referrals from other investors, using online platforms like Angie's List or HomeAdvisor, and getting multiple bids to ensure a fair price and quality work. The speaker advises against paying the contractor upfront and recommends paying in installments based on the completion of specific milestones.
Finally, the speaker recommends finding an agent who specializes in selling flipped properties and has experience in the local market. The agent can help determine the right price point for the property and can market it effectively to attract potential buyers. The speaker also emphasizes the importance of having a solid exit strategy in place before starting the flip and suggests becoming an agent oneself to gain access to the MLS and tax records, which can be helpful in finding deals.
The video discusses the misconceptions surrounding house flipping and provides a step-by-step guide