It took about two years for my brother and I to find the deal we knew we wouldn't lose money on. I wanted a partner I could trust and knew I could split the work with! Since we wanted to buy, flip and rent out near the college campus I was then attending. It went great but we definitely learned a lot along the way about when to hire out help and when it's best to save on labor and learn to do it yourself! We went on to purchase a few more around that same area! We have yet to branch out but are now looking in the Nashville area, about an hour away!
Mine was dumb luck in 2007. Didn't know jack about ARV's, and what nots. I bought a house I thought was cheap (30k) then rehabbed it. I was in the construction business at the time so I just dove right in and didn't even do any real analysis.
bought it for 30k, put 30k into it, then rented it for 700/mo, refinanced and got my money back out.
A year later I sold for 85k.
I got out of the business for about a decade after the crash and just recently started to make some offers again. Tough time to be getting back in though. Prices are high, subs want too much, haven't found any properties yet that I believe were a deal.
We belonged to a car club. Another member had recently inherited a dumpy little house when his elderly mother died. I offered no money down and no payments for one year - AND THEY TOOK IT! I did a minor rehab (because that's all I knew how to do at the time), did a lease option and in the end sold for a profit and paid them off. That was 30+ years ago and I haven't quit yet...
I'm not a flipper. I do buy/hold, but I did fall into a deal that made the most sense to flip.
It took me 5 months to find and about $7000 in marketing exp. I'm in a pretty competitive market.
Thanks for your insight and experience
My story is weird but I think plenty of people get into flipping in the same way and so I'll share.
I did my first renovation in Athens, Greece in 2006, at the absolute peak of what we know was a hugely inflated real estate boom fueled by bad money debt deals. My girlfriend at the time ran a basement studio apartment in an apartment building that she always suspected was illegal. She had had tenants there for about four years. Suddenly, her tenant called and said he was moving out. They came to an agreement, and they vacated the premises, and we went over to look at the place.
It was an absolute disaster. The tenants were not locals and not traceable. They had stripped out half the hardware for the bathroom, practically destroyed the kitchen area, and the furniture that the apartment was rented with was totally trashed. My girlfriend had spent all the money her mother had given her on the apartment and she was in tears. I gallantly volunteered to paint the place.
Sadly, painting the place wasn't all it needed. It took me four months, but I fixed that apartment up working in my spare time. My girlfriend had paid $18,000 euros for it in 2002. She sold it for, I believe, 29,500 euros in 2006. Of course, I didn't see a dime of that money. My girlfriend next requested that I help renovate her own apartment, while she lived with my mother. I did that, too. The whole story ended with me and my mom on a place flying out of Greece to the USA and me ending the relationship with the girlfriend with a text message and a letter she found when she came back from the vacation she took alone, paid for by the profits of the first renovation.
I'm sure she found a slightly more gullible fool to be with quickly enough.
With those two renovations under my belt, however, I understood that there was money to be made in flipping. As long as you do in the right place, at the right time, and with the support of the right people. Renovating will most definitely reveal to you if you're doing it with the right people behind you.
Hello, @David Dorsey wanted to share the bit of insight that I have. We are a company that focuses on value-add flips. We started looking for properties about a year ago. Offered on quite a few but were never able to secure one. We have attempted various forms of marketing including, facebook, craigslist, direct mail, and cold calling. We, currently have a verbal offer accepted and are working on the details of a contract for a duplex that we will be able to buy based on our numbers. There is a bonus building on the property that was used as a detached garage, that we will be converting into a duplex-specific laundry/storage room. The way we found this deal was through networking, we are very active in networking and run one of only two REIA's in the town of Athens Ga. So here is a bit of my insight. Thank you for taking the time and reading!