Someone that can help walk me through starting in flipping houses

Someone that can help walk me through starting in flipping houses

Member since 2019 路 2 posts 路 0 votes

Hello, currently living in Houston area and would like to start PT work in real estate flipping a house. There are tons of training but can't seem to find step by step guides. What is it you 1st, 2nd, 3rd and so on.

Thanks

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Ryan LubyPro Member
Rental Property Investor 路 CT 路 Member since 2016 路 258 posts 路 227 votes
6y

@Tyler Wolgamuth

Find a few investors in your area, and reach out

Do whatever you can to add value to their real estate investing goals

Don't give anyone your money, leverage a different asset (like time)

Be persistent

Say yes to every opportunity, and build your tool belt (acquire things that help make you more valuable, real estate license, contractor license or something like this)

Treat your experiences like a school.. because it is, document what you see/ learn, take notes, journal, revisit what you document, think about the process, analyze houses.. try to organize in a g-sheet or excel the investors criteria they use, identify how they invest, what metrics they track if any, what is their average purchase price, average profit, average rehab budget, average difference between estimated rehab budget and actual rehab budget, average difference between estimated ARV and actual ARV

Continue tracking this information, combining books and podcast with this.

Sleep well

Eat well

Exercise consistently, especially exercise before or after reading or learning, and listen to a podcast while doing cardio so you retain the info

Start refining your tool belt, and sharpening only a couple tools that contribute toward your goal

Start saying No to distractions or things that take away from your goal

Work consistently over a long period

Work your a$$ off...

Good luck, keep working hard!

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  • Specialist 路 Paradise Valley, AZ 路 Member since 2018 路 3k+ posts 路 2k+ votes
    6y
    Originally posted by @Tyler Wolgamuth:

    Hello, currently living in Houston area and would like to start PT work in real estate flipping a house. There are tons of training but can't seem to find step by step guides. What is it you 1st, 2nd, 3rd and so on.

    Thanks

    Houston has several real estate investment groups. Join one and do a joint venture with a successful flipper.

  • Rental Property Investor 路 Concord, GA 路 Member since 2015 路 3k+ posts 路 3k+ votes
    6y

    Well, there are entire books written about the process but a few key points are:

    You need to know what a property is worth ARV (after repair value) which is when it's all repaired and beautiful.

    You need to know how much it's going to cost to get it that way from the condition it's in when you buy it.

    You use those two numbers and start working backwards to find out how much you can pay for the property. There's a lot of expenses such as sales costs (realtor commissions), holding costs (loan interest, utilities, etc) and those all need to be factored in as well. Expect the project to take a lot longer than you think it should. A lengthy holding period can eat your lunch so make sure you have good margins.

  • Ryan LubyPro Member
    Rental Property Investor 路 CT 路 Member since 2016 路 258 posts 路 227 votes
    6y

    @Tyler Wolgamuth

    Find a few investors in your area, and reach out

    Do whatever you can to add value to their real estate investing goals

    Don't give anyone your money, leverage a different asset (like time)

    Be persistent

    Say yes to every opportunity, and build your tool belt (acquire things that help make you more valuable, real estate license, contractor license or something like this)

    Treat your experiences like a school.. because it is, document what you see/ learn, take notes, journal, revisit what you document, think about the process, analyze houses.. try to organize in a g-sheet or excel the investors criteria they use, identify how they invest, what metrics they track if any, what is their average purchase price, average profit, average rehab budget, average difference between estimated rehab budget and actual rehab budget, average difference between estimated ARV and actual ARV

    Continue tracking this information, combining books and podcast with this.

    Sleep well

    Eat well

    Exercise consistently, especially exercise before or after reading or learning, and listen to a podcast while doing cardio so you retain the info

    Start refining your tool belt, and sharpening only a couple tools that contribute toward your goal

    Start saying No to distractions or things that take away from your goal

    Work consistently over a long period

    Work your a$$ off...

    Good luck, keep working hard!

  • Investor 路 Houston, TX 路 Member since 2017 路 1k+ posts 路 871 votes
    6y

    Yes, get to a RE Investment meetup and just find some folks that are out doing it.  Starting running in the right herds. 

    Hardest part will be finding some deals, but you can start by analyzing a few dozen/hundred of them.  It won't take you long to get good at working the values of the property (after repairs) but the tricky part is getting the repair estimate right. 

    Get a HM lender that is local - even if you got the funds, these guys are investors themselves and an excellent set of training wheels.  

    And fergawdsakes -- don't talk yourself into a deal just because you really, really want to 'take action' and get started asap.  That's what I did.

    Reach out if you want to go have a brewed beverage.  Not an expert, but I can at least help you with a few contacts.

  • Real Estate Broker 路 Forney, TX 路 Member since 2019 路 1k+ posts 路 399 votes
    6y

    @Tyler Wolgamuth Welcome to BiggerPockets! Truly nice to meet you. Good luck going forward! 馃榿 Look to volunteer for Habitat for Humanity or maybe so Handyman work. But listen to podcasts and keep learning!!

  • Member since 2019 路 2 posts 路 0 votes
    6y

    Thank you everyone for the replies.

    Is it a better idea to have an agent to work with at the start?

  • Real Estate Agent 路 Houston, TX 路 Member since 2019 路 42 posts 路 20 votes
    6y

    @Tyler Wolgamuth

    My husband and I are just getting started as well.  3 months in but no deal yet.  I found that reading books on flipping was hugely helpful in addition to all the tips above.  I recommend these 2 because they do give you step by step guides:

    The Flipping Blueprint by Luke Weber & The Book in Flipping Houses by J Scott

    In terms of the agent thing, that is probably where we will start just until we get a few deals under our belt and get more familiar with the process.  Plus have to have a pro to make sure we can sell the houses fast.  Plan to get my real estate license once it financially makes more sense.  Plus, I am still working a demanding full time job which makes it challenging. 

    Been going to meetups where I can find them to meet others.  Trying to listen to as many webinars, podcasts, etc for tips as I can and recently went Pro on here to do much more practicing with the calculators.  Anyway, that's my strategy so far but it seems like you can never stop learning in this industry....

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