7 Steps Investors Must Follow for a Successful House Flip

7 Steps Investors Must Follow for a Successful House Flip

2 min read
Brandon Turner

Brandon Turner is an active real estate investor, entrepreneur, writer, and podcaster. He is a nationally recognized leader in the real estate education space and has taught millions of people how to find, finance, and manage real estate investments.

Experience
Brandon began buying rental properties and flipping houses at the age of 21. He started with a single family home, where he rented out the bedrooms, but quickly moved on to a duplex, where he lived in half and rented out the other half.

From there, Brandon began buying both single family and multifamily rental properties, as well as fix and flipping single family homes in Washington state. Later, he expanded to larger apartments and mobile home parks across the country.

Today, Brandon is the managing member at Open Door Capital, where he raises money to purchase and turn around large mobile home parks and apartment complexes. He owns nearly 300 units across four states.

In addition to real estate investing experience, Brandon is also a best-selling author, having published four full-length non-fiction books, two e-books, and two personal development daily success journals. He has sold more than 400,000 books worldwide. His top-selling title, The Book on Rental Property Investing, is consistently ranked in the top 50 of all business books in the world on Amazon.com, having also garnered nearly 700 five-star reviews on the Amazon platform.

In addition to books, Brandon also publishes regular audio and video content that reaches millions each year. His videos on YouTube have been watched cumulatively more than 10,000,000 times, and the podcast he hosts weekly, the BiggerPockets Podcast, is the top-ranked real estate podcast in the world, with more than 75,000,000 downloads over 350 unique episodes. The show also has over 10,000 five-star reviews in iTunes and is consistently in the top 10 of all business podcasts on iTunes.

A life-long adventurer, Brandon (along with Heather and daughter Rosie and son Wilder) spends his time surfing, snorkeling, hiking, and swimming in the ocean near his home in Maui, Hawaii.

Press
Brandon’s writing has been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media.

Follow
YouTube
Instagram @beardybrandon
Open Door Capital

Read More

Join for free and get unlimited access, free digital downloads, and tools to analyze real estate.

Need some extra cash ASAP—but not willing to go the way of bank robbery? The good news is that flipping houses is a feasible way to earn cash relatively quickly!

So how exactly do you get started flipping houses? While there’s much more to learn (and many more resources on BiggerPockets to help you out), let’s reduce the process to seven simple steps.

The 7 Steps of Flipping a House

1. Educate yourself.

Know what the heck you’re getting into. House flipping is awesome, but it can be risky. So watching videos like this one is a great first step, but don’t stop here. Check out our books on flipping houses and the rest of the articles on this blog. Then ask all of your flipping-related questions as they come up in our forum dedicated to this topic—and get answers from experienced investors who have been where you are. Who knows—maybe you’ll meet your next partner there. Speaking of…

2. Figure out your funding.

Maybe you need a partner. Maybe you need to check out hard money lenders. Or maybe you need a combo of various financing strategies. Whatever the case, look into how you plan to finance the deal before you look for the deals themselves.

3. Find leads.

Landing good deals isn’t always easy, especially in a competitive market. Sure, finding a good real estate agent is a solid first step. But incredible deals are hard to come across on the MLS these days. Luckily, there are alternative strategies: For instance, you could get creative and send out direct mail letters or find run-down houses by driving around.

4. Analyze your deal.

Will this deal actually make you money? You’ll want to make sure you analyze your prospect closely and back into whether you can get the ROI you want out of it. Start with: What profit do you want to make? This will help inform your maximum allowable offer (MAO) or the maximum amount you can afford to pay for the deal and still get paid the profit you want.

5. Make an offer and keep your MAO in mind.

Make an offer that makes sense for your numbers—and most of the time, get ready to be shot down. Once in a while, though, the numbers work for both parties, and you’ll have yourself a flip.

6. Close on the property.

Depending on where you are, the closing process might involve different steps. For instance, in some states, you might need an attorney. Understand what the steps look like in your specific market and come to the closing prepared.

7. Manage the flip.

Don’t underestimate the tight hold you need to have on your contractors to get the job done as quickly and efficiently as possible. And remember, you don’t want to overspend on things that don’t allow a lot of of value. You might love that quartz countertop, but will it add significantly to your selling price? What’s the market you’re aiming to sell to?

Bonus: Sell that flip.

The selling process might seem straightforward, but there are tips and tricks for selling for more money. If you’re looking to get insider advice on how to get the most for your property (and offload it as quickly as possible), check out How to Sell Your Home.

That’s it in a nutshell. Any questions about this process? Any important aspects I missed?

Leave your comments below!