Just getting started in flipping. Any important pieces of advice?

4 Replies

NETWORK, NETWORK, NETWORK. 

If you are going to do flips, you are going to need a solid list of contractors that have already been vetted out by other local investors. You definitely don't want to get a property and then have to hold it for an extra few months because you can't find reliable contractors to work on it. 

@Cassi Justiz Thank you for that sliver of advice! If you dont mind me asking, where did you start your networking journey. Ive been to seminars, groups, and social connecting parties. For some reason ive always attracted a beginners crowd when I sought out to find experienced people. Any recommendations on a different approach for meeting these experienced people? Ive looked into a company called renautus as well and have heard great things. Anything helps during the initiation process!!

Networking is huge. My piece of advice would be "Have outs"

Outs are important. Don't let your pride stop you from taking a good out by hanging on for one with less chance of success. Example you buy a house for 15K, it needs 50K to be a 100K house. Nice you have a flip option. If some one offers you 30K for it before driving a nail or dropping a dumpster, don't be afraid to take it and make a quick 15K. If you finish it and it is not selling, renting is an option, stop the holding fees and get the thing rented.  If you are halfway done and some guy walks up and you get to chatting and he offers to "take it from here for his daughter" and the numbers work, I like that out. 

I see people dig their heals in all the time and end up tripping over dollars to save pennies. Hanging onto a property because they "know it's worth $5K more". Sure 6 months later and $7500 later they get their $5K. No emotional attachment, try and time your outs.

Good Luck!

@Garett Bridwell I've had a lot of luck at my local REIA. Locally we have a coffee with real estate investors group that was really helpful. We have people with all sorts of experience levels that go to that. Maybe you can find something like that where you are. Even if it's just one experienced person that you can connect with, it's a good place to start.