Coach for scaling my business

9 Replies

I am looking to scale my house flipping business at the start of the year. Does anyone have any recommendations on a good mindset/scaling coach that is good in this space? Any help or direction would be appreciated.

Originally posted by @Adam Mittermeier :

I am looking to scale my house flipping business at the start of the year. Does anyone have any recommendations on a good mindset/scaling coach that is good in this space? Any help or direction would be appreciated.

You want to make money the hard way, flipping. Okay, well, it will take a whole lot more than a simple post. But, the NAR (National Association of Realtors) says that the average flip grosses $67,000 with a net of $15,000 after supplies, carrying costs, labor and closing costs and takes 6 months from finding a property to getting cash out and is the highest taxed for real estate. Other than that, how can I help you?

 By the way, you live in a beautiful state. We bought some jelly at a fruit stand outside of Berryville on our drive to Branson MO last August and had a great time in your state. Nicely mowed lawns. 

Originally posted by @Mike Hern :
Originally posted by @Adam Mittermeier:

I am looking to scale my house flipping business at the start of the year. Does anyone have any recommendations on a good mindset/scaling coach that is good in this space? Any help or direction would be appreciated.

You want to make money the hard way, flipping. Okay, well, it will take a whole lot more than a simple post. But, the NAR (National Association of Realtors) says that the average flip grosses $67,000 with a net of $15,000 after supplies, carrying costs, labor and closing costs and takes 6 months from finding a property to getting cash out and is the highest taxed for real estate. Other than that, how can I help you?

 By the way, you live in a beautiful state. We bought some jelly at a fruit stand outside of Berryville on our drive to Branson MO last August and had a great time in your state. Nicely mowed lawns. 

One vote against the flipping business I guess. I would not put to much weight behind the Nar stat above, no more than I would when they say the "average price of RE in the US = X" What happens in CT vs WY vs CA are huge differences and the RE market is local, not national. If I only made $15k on a flip, I would have never ever flipped one house. My current flip is a $500k acquisition, $120k rehab, and a list price of $749k with 2 offers at $800k already and several more below that but over ask price (in only 5 days of listing). I made $1M on 1 single family flip and made 6 figures on many more. I guess NAR did not include me in their data.

Anyways, the taxing of it is certainly a drag and for every few flips, you certainly want to hold something as the saying "don't wait to buy real estate, buy real estate and wait" is certainly valid on a number of levels, including taxing.

How to scale: Systems, proper payperwork, proper team building, and proper oversite is a good start. Finding enough funding and deal flow is the second piece of that puzzle. The best way to find a coach to help you scale is to find someone who is doing what you want to do very successfully and is willing to take you under their wing. 

Originally posted by @Will Barnard :
Originally posted by @Mike Hern:
Originally posted by @Adam Mittermeier:

I am looking to scale my house flipping business at the start of the year. Does anyone have any recommendations on a good mindset/scaling coach that is good in this space? Any help or direction would be appreciated.

You want to make money the hard way, flipping. Okay, well, it will take a whole lot more than a simple post. But, the NAR (National Association of Realtors) says that the average flip grosses $67,000 with a net of $15,000 after supplies, carrying costs, labor and closing costs and takes 6 months from finding a property to getting cash out and is the highest taxed for real estate. Other than that, how can I help you?

 By the way, you live in a beautiful state. We bought some jelly at a fruit stand outside of Berryville on our drive to Branson MO last August and had a great time in your state. Nicely mowed lawns. 

One vote against the flipping business I guess. I would not put to much weight behind the Nar stat above, no more than I would when they say the "average price of RE in the US = X" What happens in CT vs WY vs CA are huge differences and the RE market is local, not national. If I only made $15k on a flip, I would have never ever flipped one house. My current flip is a $500k acquisition, $120k rehab, and a list price of $749k with 2 offers at $800k already and several more below that but over ask price (in only 5 days of listing). I made $1M on 1 single family flip and made 6 figures on many more. I guess NAR did not include me in their data.

Anyways, the taxing of it is certainly a drag and for every few flips, you certainly want to hold something as the saying "don't wait to buy real estate, buy real estate and wait" is certainly valid on a number of levels, including taxing.

How to scale: Systems, proper payperwork, proper team building, and proper oversite is a good start. Finding enough funding and deal flow is the second piece of that puzzle. The best way to find a coach to help you scale is to find someone who is doing what you want to do very successfully and is willing to take you under their wing. 

I made my millions flipping houses in Seattle. Not an inexpensive market. I know what I'm doing over 25 years of flipping. I also know most people don't know what they are getting into when they first start flipping. How many starting out can buy a $500,000 property and put $120,000 into it as in your example? Congratulations, by the way. Good Job! But, that is unrealistic for the vast number of newbies to BP. They are looking at $100,000 properties and $10,000 renos. How do you make any money on that?

Your comment: "I guess NAR did not include me in their data." is "cute" but not reality. There are so many people that lose money at flipping and believe they will make it up in volume (an old joke) that it is unfair to not warn them of the pitfalls. 

I think twice before I pick up a rattlesnake. Yeah, the venom sells for a lot of money but you can be bitten in the process. If you like excitement in a changing market, flipping is for you. Just realize what you are getting into.

Sure, lots of people lose on a flip. I have lost 6 figures on flips and that is no fun but part of the business if you do it full time for a long time. Anybody in this biz who has done it for a long time and many has likely had their failure deals. Rather than looking at the total costs of my example of $500k+$125K vs $100k + $10k, it is most important to look at what the final return % was of profit. I personally don't work in a space where I would be making $10k-$20k per flip, that is too low for me, but on a return % basis, that could work with small investment amounts.

Point is, flipping is a viable strategy but it has its ups and downs on a number of different levels so investors should really know what they are getting into and plan to mitigate risks as much as possible.

Originally posted by @Adam Mittermeier :

@Will Barnard @mik sounds like you both have had success. Would you care to share how you built your team as far as what your first hire should be specifically tasked for?

I don’t think there is a one size fits all answer to that question. The answer depends on what your current business looks like, your existing team, your goals, your abilities, etc.

I do know one universal thing though, finding more deals and more money are key to moving upward in scale so I would strongly consider the potential hiring of an acquisitions manager while you spend more time hunting for more money. After all, lenders will be lending and trusting in you so you should be the face on that facet. 

As has been said above, raising money is the key to large scale flipping.  It isnt hard to find someone that will bring you deals and you can also find project managers of the pay is right. Cash is what keeps the machine running. I knew a very successful businessman who had started a company and it became quite large and he turned over daily operations to an underling. He told the underling to just concentrate on daily operations and he would deal with the bank and keep the money flowing.