Is Flipping Is DEAD???

12 Replies

I've talked to tons of realtors, hard money lenders... everyone says how hard it is to find deals, yadda yadda yadda.  They make it sound like flipping is dead and no way for a newbie to find a property to flip.  This cannot be true?

Nobody has anything good to say.  I am not looking for spoon feeding... just some real direction where to hustle to.  Are these "neh sayers" just those who "can't" or "won't"...???  

Surely, it is not impossible to find a desperate seller or put in tons of offers on REO properties or something... right?

How are any of you "one-man-band" hustlers finding deals??? Just a little nugget... you don't need to give me the whole ball of wax.... just give me a crumb to lead me in the right direction.  

Thank you!

The short answer is no, flipping is not dead. It's just very difficult to consistently find good enough deals. If your marketing budget is $0, it's even more difficult. 

Lots of newbies are able to find the first one, most people know someone who knows someone who needs to sell their house, it's actually the 2nd one and beyond that's more difficult. 

Originally posted by Account Closed:

I've talked to tons of realtors, hard money lenders... everyone says how hard it is to find deals, yadda yadda yadda.  They make it sound like flipping is dead and no way for a newbie to find a property to flip.  This cannot be true?

Nobody has anything good to say.  I am not looking for spoon feeding... just some real direction where to hustle to.  Are these "neh sayers" just those who "can't" or "won't"...???  

Surely, it is not impossible to find a desperate seller or put in tons of offers on REO properties or something... right?

How are any of you "one-man-band" hustlers finding deals??? Just a little nugget... you don't need to give me the whole ball of wax.... just give me a crumb to lead me in the right direction.  

Thank you!

 It's not "dead," but it's a crowded space. Most people I've encountered doing it have some relevant sales/marketing/construction background, and the wherewithal to have marketing budgets in the thousands of dollars. 

The "HGTV Effect" where everyone with zero relevant experience wants to be a flipper "as seen on tv" can cause a lot of industry insider eyes to glaze over, myself included from time to time, granted. If you mean just go to redfin/zillow and find a killer deal there, or a website listing REOs, to "get rich quick with no money down," ya, that's mostly dead (to the extent that it was ever alive at all). 

It is very much alive. But it's not like 2010-2011 where you can browse the MLS a few times and find one

You can still find them on the MLS - a lot more offers and you have to be more competitive (this could be pricing, removing contingencies, etc.). Network a lot with agents and add value to them.

You can find them yourself - but know that you are starting a marketing and sales company vs a project management company which I classify rehabbing to be

You can network with the people who do have marketing and sales companies (wholesalers), and add value to them.

If I were you, I would find the wholesalers in your area, build a relationship, and figure out how you can buy from them. You can do this with agents too but sometimes its harder to find an agent who has the time to work with an investor who has yet to prove themself. 

A friend of mine did 123 flips last year, it's definitely dead. ;-) No just kidding. Definitely depends on who you ask. I have friends that don't have any, and I have others with too much going on. We are hiring right now and don't have enough help to finish our rehabs fast enough and are cycling through new leads every day. Do what @Arianne L. says. She is basically a rock star of flipping and they are crushing it right now. If you are anywhere close to them, talk to them! 

As a one-man band, Drive for dollars. write letters. Someone gave me that advice and I listened to them. 6 months later I quit my job and have been doing this full time since '16 now. wouldn't have it any other way. You can do it!!!

Flipping is not dead, its just so many investors and wholesalers competing that they've driven the margins down. Just have to keep grinding to find the right deal for you. 

And as people live longer, there will be more homes that have aged and need rehabbing. That will never die. 

Onward.

sjw

Account Closed

Hello sir!

Flipping is definitely not dead, my friend. However, as others have mentioned before me, it has gotten increasingly more competitive due to the growing number of investors looking to get into the marketplace, AND an increase in the demand for quality projects.

My company is currently purchasing roughly 200 flips and rentals per month in 15 or so markets that span the US. And although our numbers are up, it still takes an excessive amount of work to find these opportunities on a consistent basis.

Anytime I'm in a rut in my quest for deals, I always remember that thing my parents told me, that so many other kids heard from their parents growing up too: "It's not what you know, it's who you know."

Looking back on my career, the majority of the homes that I purchased on behalf of my organization were not off the local MLS, or even from letters. Most of the leads that I ultimately purchased came from PEOPLE like you and me. I've bought from hard money lenders, real estate brokers, probate attorneys, divorce attorneys, neighbors, friends, family (thanks Uncle Greg), you name it. The point is: the best thing you can do is get out there, tell EVERYBODY what you do, and how you can help them.

All of the sudden the leads will start pouring in. Your next problem will be finding the time to examine all your leads to discover which ones are worth pursuing or not. 

Go to your local REIA group. Get your real estate license and start cold calling brokers. Call every local contractor you can find and introduce yourself. Hand your business card to everyone at the gas station next time you stop to fill up. ETC.

It's not easy, but it is simple.

Lastly, don't get discouraged if you don't buy a deal in your first week of searching. We only bought 2 homes in our first 6 months in Chicago, and now we're consistently buying 4-6 per month another 6 months later.

It takes TIME.

Enjoy the pursuit! The chase is all the fun!

it really depends on what area of the country your in.. some areas have not rebounded near as well as others in the country.. 

I split time between Vegas and Portland and both of those markets are what I consider very difficult for the fix and flipper.  and most that have success.. have very large marketing budgets.. in the 10 to 50k a month range.. to do any volume.. 

and some of my other clients that were in fix and flip in FLA.. have done what i did.. and I stopped doing them all together and now only do new construction..   

Although some areas have never ending inventory like the guy up in Chicago.. parts of chicago will never run out of derelict homes.. and some of the other big rust belt cities. and or mid west cities..

Flipping is never dead. We just experience highs and lows of finding good properties. Some weeks you have dozens of great leads, some weeks you have to really hustle to find them. They are always out there.

Account Closed

No flipping is not dead. You may need to change your strategy and surround yourself with more positive people, network with more real estate agents so they can bring you off market deals. 

Also try yellow letters they work for me

Good luck 

Flipping is alive and well. It has become quite competitive for the best deals. They are still out there. If you are looking for a flip in cities like Miami, you are going to have a tough time. I am seeing a ton of projects in Jacksonville.