Starting with Flipping?

11 Replies

I'm a new investor, and I'm considering some strategies to get into real estate. I like the idea of flipping (if done well), but is it considerably more risky to start flipping houses given the current state of the economy?

Originally posted by @Lennon Turner :

I'm a new investor, and I'm considering some strategies to get into real estate. I like the idea of flipping (if done well), but is it considerably more risky to start flipping houses given the current state of the economy?

 Economy is fine. What you should be concerned with is your ability to do this business well. What are your competitive advantages?

You have to be really careful when it comes to flips. I had a contractor that worked for me for a while and I thought he was trustworthy and stole 90K from me. You just really have to stay on top of the contractors and make sure the work is being down correctly. 

Originally posted by @Chris Salerno :

You have to be really careful when it comes to flips. I had a contractor that worked for me for a while and I thought he was trustworthy and stole 90K from me. You just really have to stay on top of the contractors and make sure the work is being down correctly. 

 Ouch how'd that go down? $90k down payment and he walked away from the job?

Originally posted by @James Wise :
Originally posted by @Chris Salerno:

You have to be really careful when it comes to flips. I had a contractor that worked for me for a while and I thought he was trustworthy and stole 90K from me. You just really have to stay on top of the contractors and make sure the work is being down correctly. 

 Ouch how'd that go down? $90k down payment and he walked away from the job?

 The contractor stole 35k upfront and did nothing to fix the house. I now have to pay 45k to fix the home. I have had it for 8 months. So I am taking the time I had it and my losses total. 

I will still profit 18k off the deal. 

I picked a good deal but very upset about what happened.

Originally posted by @Chris Salerno :
Originally posted by @James Wise:
Originally posted by @Chris Salerno:

You have to be really careful when it comes to flips. I had a contractor that worked for me for a while and I thought he was trustworthy and stole 90K from me. You just really have to stay on top of the contractors and make sure the work is being down correctly. 

 Ouch how'd that go down? $90k down payment and he walked away from the job?

 The contractor stole 35k upfront and did nothing to fix the house. I now have to pay 45k to fix the home. I have had it for 8 months. So I am taking the time I had it and my losses total. 

I will still profit 18k off the deal. 

I picked a good deal but very upset about what happened.

Bummer. To be fair though only $35k was stolen from you. Not an insignificant amount but still a helluva lot better than $90k.

 

If I were you Id buy my first FIX/FLIP to live in,and do most of the work your self if possible. Once you cash in and make a profit you can roll the money into into the next one, be on the watch for contractors they back out all the time, I would make sure you talk to a professional before signing anything. Good luck 

Originally posted by @James Wise :
Originally posted by @Chris Salerno:
Originally posted by @James Wise:
Originally posted by @Chris Salerno:

You have to be really careful when it comes to flips. I had a contractor that worked for me for a while and I thought he was trustworthy and stole 90K from me. You just really have to stay on top of the contractors and make sure the work is being down correctly. 

 Ouch how'd that go down? $90k down payment and he walked away from the job?

 The contractor stole 35k upfront and did nothing to fix the house. I now have to pay 45k to fix the home. I have had it for 8 months. So I am taking the time I had it and my losses total. 

I will still profit 18k off the deal. 

I picked a good deal but very upset about what happened.

Bummer. To be fair though only $35k was stolen from you. Not an insignificant amount but still a helluva lot better than $90k.

 Correct, In business you have to calculate all expenses. I did not want to spend an extra 45k to fix the home. So all of that would be considered stolen due to the fact he took the 35k from me. 


 

Originally posted by @Chris Salerno :
Originally posted by @James Wise:
Originally posted by @Chris Salerno:
Originally posted by @James Wise:
Originally posted by @Chris Salerno:

You have to be really careful when it comes to flips. I had a contractor that worked for me for a while and I thought he was trustworthy and stole 90K from me. You just really have to stay on top of the contractors and make sure the work is being down correctly. 

 Ouch how'd that go down? $90k down payment and he walked away from the job?

 The contractor stole 35k upfront and did nothing to fix the house. I now have to pay 45k to fix the home. I have had it for 8 months. So I am taking the time I had it and my losses total. 

I will still profit 18k off the deal. 

I picked a good deal but very upset about what happened.

Bummer. To be fair though only $35k was stolen from you. Not an insignificant amount but still a helluva lot better than $90k.

 Correct, In business you have to calculate all expenses. I did not want to spend an extra 45k to fix the home. So all of that would be considered stolen due to the fact he took the 35k from me. 

 

That's some head scratching math but whatever you say my man. Good luck to you.

 

Flipping, done properly, is not risky. I could have easily rented flips and they all had long term debt on them. It's just hard without scale.

I flipped a few properties when I started to generate some seed capital. It was trial and error but I figured things out along the way.

Originally posted by @James Wise :
Originally posted by @Chris Salerno:
Originally posted by @James Wise:
Originally posted by @Chris Salerno:
Originally posted by @James Wise:
Originally posted by @Chris Salerno:

You have to be really careful when it comes to flips. I had a contractor that worked for me for a while and I thought he was trustworthy and stole 90K from me. You just really have to stay on top of the contractors and make sure the work is being down correctly. 

 Ouch how'd that go down? $90k down payment and he walked away from the job?

 The contractor stole 35k upfront and did nothing to fix the house. I now have to pay 45k to fix the home. I have had it for 8 months. So I am taking the time I had it and my losses total. 

I will still profit 18k off the deal. 

I picked a good deal but very upset about what happened.

Bummer. To be fair though only $35k was stolen from you. Not an insignificant amount but still a helluva lot better than $90k.

 Correct, In business you have to calculate all expenses. I did not want to spend an extra 45k to fix the home. So all of that would be considered stolen due to the fact he took the 35k from me. 

 

That's some head scratching math but whatever you say my man. Good luck to you.

 

Thank you, sir! Wishing you much success! 

 

If the numbers work then I'd say go for it! If you have the scope of work in line and know all the expenses/have a team to get the work done make it happen!

Good luck and never quit pushing forward!

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