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Rehabbing & House Flipping

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Alex Ng
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How to begin Flipping

Alex Ng
Posted May 16 2023, 16:18

Hello, I am an aspiring flipper. I am building out my team right now and learning as much as I can. What are some good resources to use to learn? Where can I find deals that will work in LA/OC ? Should I get my real estate license to access MLS and save on commissions? If I borrow hard money, how much can I expect to put down initially?

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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
Replied May 16 2023, 17:31

Your biggest weakness is going to be your crew. Spend a lot of time vetting contractors, giving them small jobs until they earn the flip projects.

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Replied May 16 2023, 19:46
Quote from @Alex Ng:

Hello, I am an aspiring flipper. I am building out my team right now and learning as much as I can. What are some good resources to use to learn? Where can I find deals that will work in LA/OC ? Should I get my real estate license to access MLS and save on commissions? If I borrow hard money, how much can I expect to put down initially?


 it seems like you are not ready, if you wanna be flipper best license you should pursue if GC license. Your crew is your important asset.

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Alex Ng
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Alex Ng
Replied May 17 2023, 00:29
Quote from @Carlos Ptriawan:
Quote from @Alex Ng:

Hello, I am an aspiring flipper. I am building out my team right now and learning as much as I can. What are some good resources to use to learn? Where can I find deals that will work in LA/OC ? Should I get my real estate license to access MLS and save on commissions? If I borrow hard money, how much can I expect to put down initially?


 it seems like you are not ready, if you wanna be flipper best license you should pursue if GC license. Your crew is your important asset.


 It takes years of experience before I can even apply for a GC license. Assuming I have a solid contractor, what should I do to learn? how do i find deals here in southern cali?

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Bob Stevens#5 General Landlording & Rental Properties Contributor
  • Real Estate Consultant
  • Cleveland
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Bob Stevens#5 General Landlording & Rental Properties Contributor
  • Real Estate Consultant
  • Cleveland
Replied May 17 2023, 05:24
Quote from @Alex Ng:

Hello, I am an aspiring flipper. I am building out my team right now and learning as much as I can. What are some good resources to use to learn? Where can I find deals that will work in LA/OC ? Should I get my real estate license to access MLS and save on commissions? If I borrow hard money, how much can I expect to put down initially?

 Get to a local REA meeting, no you do not need a RE license, you are not anywhere near ready to even look for deals, Learn 1st, then apply what you learn, 

Good luck 

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David Ramirez
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  • Tampa, FL
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David Ramirez
  • Investor
  • Tampa, FL
Replied May 17 2023, 07:08

Network with flippers in your area, ask for referrals, and learn as much as you can from them. Since this is your first investment property, the hard money lender will likely require at least a 10% down payment and your interest rate may be high. When running the numbers, make sure to adhere to the 70-75% rule, as you would be paying approximately 5% of the after-repair value (ARV) for lender fees and carrying costs alone. In today's market, it may be more advantageous to seek a financial joint venture (JV) partner who can provide the cash while you handle the rest.

Good Luck!

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Replied May 17 2023, 07:36
Quote from @Alex Ng:
Quote from @Carlos Ptriawan:
Quote from @Alex Ng:

Hello, I am an aspiring flipper. I am building out my team right now and learning as much as I can. What are some good resources to use to learn? Where can I find deals that will work in LA/OC ? Should I get my real estate license to access MLS and save on commissions? If I borrow hard money, how much can I expect to put down initially?


 it seems like you are not ready, if you wanna be flipper best license you should pursue if GC license. Your crew is your important asset.


 It takes years of experience before I can even apply for a GC license. Assuming I have a solid contractor, what should I do to learn? how do i find deals here in southern cali?

Master the comps, buy even lowered from the lowest comp, timing the market, analyze the comps. Prepare backup plan. You don't need to be realtor to understand the comps. Invest more into A class property. Flipping is market function, not the house function per se. Focus on flipping in expensive area but your price point is still within a median of price in the area. 

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Ke Nan Wang
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Ke Nan Wang
  • Developer
  • St. Augustine, FL
Replied May 17 2023, 07:40

Seems like you are very new to this and does not have a trusty mentor. Unless you either come from a wealthy background and somebody's gonna offer you the financial security, or you don't mind paying a tuition for real life experience, I would recommend start with or keep working your W-2 job, save money and do flipping as a side hustle to start, in the evening or on the weekend. 

I would start with one small house that maybe just need painting, flooring and new kitchen bathroom cosmetic remodels, learn as much as you can from watching YouTube videos, ask friends who has experience and do a project DIY. 

Maybe do one a year just to learn the game, take it slow. It's the least stressful, least risky way to do it. It take years of experience to understand construction and learn how to talk to contractors, pick out and appreciate the good ones, and keep them accountable. 

Trust me, 90% of the gurus you see online you don't see their complete story. Usually many of them achieve success not on their own, because someone in their life guided them in the beginning of their journey. Most of the gurus don't talk about these people because it undermines their credibility. People such as parents, grandparents, uncles and aunts, or very close trusty friends, who they really trust and can rely on their expertise to get started without hitting too many landmines. 

But if you can afford to pay thousands or tens of thousands of dollars as a tuition for real life experience, then you can go ahead and dive in deep as a full time gig from the get go and just learn as you go. You may learn faster this way but you will certainly pay. 

Lastly to answer your question, you don't need a RE license to be a flipper. It will be another cost in terms of money and time and be a distraction from you become a professional flipper. 

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Scott E.#2 Rehabbing & House Flipping Contributor
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  • Scottsdale, AZ
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Scott E.#2 Rehabbing & House Flipping Contributor
  • Developer
  • Scottsdale, AZ
Replied May 17 2023, 07:57

I've been flipping houses for over 10 years. I do not have my real estate license, and I do not have a contractor license.

Your job as a house flipper is find deals, determine the best use for the lot, and build the right team to execute your vision. This team includes..

-Real estate agent

-General contractor

-Designer

-Architect/Draftsman

-Engineer(s)

-Stager

-Title company

-Lender(s)

If you pick the right house/lot and put together the right team for the project, your flips will go pretty smooth.