Advice from a successful flipper

4 Replies

Im getting started in real estate investing/ flipping I am currently a pipeline welder looking into a new field/ lifestyle I’m 23 years old and have 30 thousand in savings with no home mortgage and no debt as I work on the road and my company pays for my hotels or extended stays I have 2 different home bases one in Chicago another in Cincinnati. I am not afraid of relocating to give real estate everything i have. I have tons of questions for a successful flipper/invesor 

Originally posted by @Evan C. :

Im getting started in real estate investing/ flipping I am currently a pipeline welder looking into a new field/ lifestyle I’m 23 years old and have 30 thousand in savings with no home mortgage and no debt as I work on the road and my company pays for my hotels or extended stays I have 2 different home bases one in Chicago another in Cincinnati. I am not afraid of relocating to give real estate everything i have. I have tons of questions for a successful flipper/invesor 

 A word of advice (since you asked), I made my first mega-bucks flipping, and my advice is "don't do flipping". Do "cash flow" instead. 

@Mike M. Can you please elaborate on what you mean by "cash flow".  Are you referring to rental properties etc... since flipping is cash intensive and can take on avg. longer than 6 months to see any money?

@Eli Weiss I believe @Mike M. is speaking of passive income vs. active.

Flips can bring on large sums of cash quick, but you need will always need a steady pipeline. Rental income on the other hand, will/should come every month, with a lot less physical effort.

If you have trade skills, I would advise you to buy a 1-4 unit which needs some work... fix it up/add value... rent it... then refinance into long term debit. This will allow you to grow your capital, learn rehabbing, and increase your income.

Originally posted by @Ibn Abney :

@Eli Weiss I believe @Mike M. is speaking of passive income vs. active.

Flips can bring on large sums of cash quick, but you need will always need a steady pipeline. Rental income on the other hand, will/should come every month, with a lot less physical effort.

If you have trade skills, I would advise you to buy a 1-4 unit which needs some work... fix it up/add value... rent it... then refinance into long term debit. This will allow you to grow your capital, learn rehabbing, and increase your income.

 I buy properties "off market" using Subject To and Wraps and and I put buyers in them. Investors in California and Illinois can do these in Arizona and Texas and get a Safer Cash Flow than CA or IL plus they get the initial amount the buyer puts down. I get between $20k and $25k down and I cash flow for about $500 a door - here is a post I wrote explaining how I did a recent one with a Joint Venture partner who contacted me to learn how to do them - I included a spreadsheet to help with the explanation - - - 

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