What are some general advice you would tell newbies?

Investor · San Diego, CA · Member since 2024 · 28 posts · 15 votes

Hey guys I want to do a fix and flip in the near future and was wondering what are some general advice you would give me?

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Bruce WoodruffPro Member

Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

Quote from @Eliott Elias:

What causes 99% of projects to fail is contractors with fix and flips. They are extremely inconsistent and require most of your attention. Choose them wisely. There are tons of tutorials and resources on how to choose the right contractor and red flags to look for.

There you go again. Just because you don't know how to choose a good Contractor does not mean that the majority are bad. I would counter your erroneous statement with this:

"What causes 99% of projects to fail is the homeowner/investor/flipper having zero clue on how to find a property with decent upside, choose a good Contractor, manage a budget, stick to the plan, stay out of the way, etc..."

😂

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David Ramirez
Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
2y
Network with investors in your area and ask questions...

The best use of your time when starting out is learning through others' experiences.
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
2y
What causes 99% of projects to fail is contractors with fix and flips. They are extremely inconsistent and require most of your attention. Choose them wisely. There are tons of tutorials and resources on how to choose the right contractor and red flags to look for.
1 Reply
Logan Singleton
Lender · Boston, MA · Member since 2023 · 415 posts · 95 votes
2y
Have a detailed plan, meaning how much rehab will cost, what materials you will use, and how long buildout will take. The more details you can provide a lender, the better since, on these bridge projects, we use your scope of work and materials to assist with determining the ARV of the project.
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Bradley BuxtonBusiness Member
Real Estate Agent · NV · Member since 2023 · 1k+ posts · 716 votes
2y
@Arshiya Taami
Know your exit plan and the market that you are buying into. Also think about who will be buying your flip? Will it be appealing to many different types of buyers. Are there other strategies you can use if the flip doesn't sell right away for a profit? Finally don't invest so much in something that could you take you out of the game whether it's money or time.
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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Arshiya Taami:

Hey guys I want to do a fix and flip in the near future and was wondering what are some general advice you would give me?

investing is a marathon not a sprint
7e investments53 Reviews
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
Quote from @Eliott Elias:

What causes 99% of projects to fail is contractors with fix and flips. They are extremely inconsistent and require most of your attention. Choose them wisely. There are tons of tutorials and resources on how to choose the right contractor and red flags to look for.

There you go again. Just because you don't know how to choose a good Contractor does not mean that the majority are bad. I would counter your erroneous statement with this:
"What causes 99% of projects to fail is the homeowner/investor/flipper having zero clue on how to find a property with decent upside, choose a good Contractor, manage a budget, stick to the plan, stay out of the way, etc..."
😂
3 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
2y
Swing a hammer and learn some rehab skills.

Learn how much time and money actually goes into a project. This will give you a great understanding of how to estimate rehabs, talk the lingo with contractors, and negotiate on labor costs. Other than buying right this is everything if you want to remodel RE.
0 Reply
Mackaylee BeachPro Member
Real Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
2y
It's crucial to have a prepared crew/contractor - that can handle any unexpected situation.
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
2y
Quote from @Bruce Woodruff:

Quote from @Eliott Elias:

What causes 99% of projects to fail is contractors with fix and flips. They are extremely inconsistent and require most of your attention. Choose them wisely. There are tons of tutorials and resources on how to choose the right contractor and red flags to look for.

There you go again. Just because you don't know how to choose a good Contractor does not mean that the majority are bad. I would counter your erroneous statement with this:
"What causes 99% of projects to fail is the homeowner/investor/flipper having zero clue on how to find a property with decent upside, choose a good Contractor, manage a budget, stick to the plan, stay out of the way, etc..."
😂

Hi Bruce, you are correct. There are many projects that fail due to the investors errors in running numbers and newbie status. I can also tell you that every investor I know has had a contractor run off with their money and ghost them. This may be because the contractor was chosen incorrectly, but to say this is not a risk is naive.
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
Quote from @Eliott Elias:

Yeah, I know it happens and it's a shame. We Contractors hate the bad ones more than you do, because they make us all look bad. But also, these investors should never be giving the Contr more money than the work that has been completed. This is not rocket science, it's a really easy concept...

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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
2y
Quote from @Bruce Woodruff:

Quote from @Eliott Elias:

Yeah, I know it happens and it's a shame. We Contractors hate the bad ones more than you do, because they make us all look bad. But also, these investors should never be giving the Contr more money than the work that has been completed. This is not rocket science, it's a really easy concept...

Even if that is the case, to have a new contractor pick up where the old one left off is a nightmare on its own.
0 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
Quote from @Eliott Elias:

Quote from @Bruce Woodruff:

Quote from @Eliott Elias:

Yeah, I know it happens and it's a shame. We Contractors hate the bad ones more than you do, because they make us all look bad. But also, these investors should never be giving the Contr more money than the work that has been completed. This is not rocket science, it's a really easy concept...

Even if that is the case, to have a new contractor pick up where the old one left off is a nightmare on its own.

True. All the more reason for a homeowner to make sure that the Contractor they hire is legit...licensed, insured, references, good contract and other paperwork, etc ..
0 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
Quote from @Account Closed:

Quote from @Bruce Woodruff:

Quote from @Eliott Elias:

What causes 99% of projects to fail is contractors with fix and flips. They are extremely inconsistent and require most of your attention. Choose them wisely. There are tons of tutorials and resources on how to choose the right contractor and red flags to look for.

There you go again. Just because you don't know how to choose a good Contractor does not mean that the majority are bad. I would counter your erroneous statement with this:
"What causes 99% of projects to fail is the homeowner/investor/flipper having zero clue on how to find a property with decent upside, choose a good Contractor, manage a budget, stick to the plan, stay out of the way, etc..."
😂
and change orders

I never want to hear those words again! I had a huge remodel, and when I finished I sat down with the customer to go over the job. I asked if he was pleased with the work, and he said of course your craftsmanship is superb. I'm just disappointed that you went over schedule. I pulled out my job binder and showed him the 40 something change orders that he had requested. He had forgotten all of them LOL...
2 Reply
Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
2y
Flipping is a self-employed job with high risk and high transaction costs.

By the time taxes and agents are done with you, the juice is rarely worth the squeeze.

Avoid short-term debt so you can hold it as a rental👍
2 Reply
Alan F.
Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
2y
Quote from @Arshiya Taami:

Hey guys I want to do a fix and flip in the near future and was wondering what are some general advice you would give me?
Knowing construction/remodeling, local codes, contractor licensing laws, state laws, project management, tax codes/laws, understanding market conditions and having a healthy amount of liquidity are but a few.

Flipping is a business and subsequently requires one to be business savvy, especially in California.
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