New to real estate - looking into fix and flip

[Ryan Engels]

Hey There!

I am new to real estate investing, and looking for advice on getting into it. I am interested in fix and flip, because I work for a flooring company (we also are the general contractor for many projects), and I have access to many skilled people, products, and I have some skills myself that relate to rehabing a property. I have toured 3 houses, ran numbers on what I think it will cost to renovate, and what I think the after repair value will be. Granted, this is rough numbers guided by no experience on the matter, but I do have a realistic idea of what things will cost. I have access to get flooring at close to no cost, countertops for half (if not less), cabinets discounted, and tile at/or below cost. I have only looked for properties that are listed on Redfin, and I feel like I am missing the good deals. I believe I know the market of my area fairly well, and have narrowed my ideal area to invest in, but I feel lost and don't have clear guidance. 

I am open to any thoughts and suggestions. I love the idea of anything real estate, but haven't had a clear direction of which route to pursue.

Thanks for the help!

Ryan Engels

[Ryan Muska]

When using Redfin, Realtor.com, Zillow, or any other main stream homes website, skip the new ones and filter by the oldest on the market. Those people will be more inclined to sell at a discount and you can get those "good deals."

Also check out Craigslist and FaceBook marketplace, but be wary of scams. 

Also, solidify an A+ team: Realtor, Financing professional (Mortgage broker, HML, PML), Wholesaler, etc.

[Sloane Kraftsow]

Welcome to the BP community! This site is an incredible platform that has numerous resources so definitely take advantage of it all. I'd love to get you started with your first fix and flip.

Would love to connect.

[Jose Jacob]

Quote from @Ryan Engels:

Hey There!

I am new to real estate investing, and looking for advice on getting into it. I am interested in fix and flip, because I work for a flooring company (we also are the general contractor for many projects), and I have access to many skilled people, products, and I have some skills myself that relate to rehabing a property. I have toured 3 houses, ran numbers on what I think it will cost to renovate, and what I think the after repair value will be. Granted, this is rough numbers guided by no experience on the matter, but I do have a realistic idea of what things will cost. I have access to get flooring at close to no cost, countertops for half (if not less), cabinets discounted, and tile at/or below cost. I have only looked for properties that are listed on Redfin, and I feel like I am missing the good deals. I believe I know the market of my area fairly well, and have narrowed my ideal area to invest in, but I feel lost and don't have clear guidance. 

I am open to any thoughts and suggestions. I love the idea of anything real estate, but haven't had a clear direction of which route to pursue.

Thanks for the help!

Ryan Engels

 Hello Ryan,

Seems like you are pretty confident that you can get cheap price on the materials that is only 20% of the whole equation.  Main part is to find a good contractor to do the renovation.  In New York, where I fix and Flip, It is practically impossible to find one.  I am a Real Estate Broker for over 30 years gave me lot of experience to find the property and evaluate those.  After couple of years of roller coaster ride, finally I found a good contractor. You really need a good team of realtors, contractors, private lenders to become a good flipper.  

Happy to give some advice  DM me.

Good Luck

[Ryan Engels]

Thank you for the response! I will start looking at older listings too and see what I find.

[David Abbate]

Are you a contractor? A builder? A realtor at least? What is your angle to compete against the others in your local area who do this professionally?

[Cole Strachan]

Hi Ryan,

A lot of deals can be found off market as well. Have you tried searching for failed sales? Or done any door knocking? I’m a realtor in Gig Harbor, shoot me a message if you’re looking for any help!

[Ryan Engels]

Quote from @David Abbate:

Are you a contractor? A builder? A realtor at least? What is your angle to compete against the others in your local area who do this professionally?

 I am flooring contractor, but I end up being the general contractor on most projects. We specialize in kitchen and bathroom remodels, but I personally am not the one doing the work. We hire out all the labor.

[Ryan Engels]

Quote from @Cole Strachan:

Hi Ryan,

A lot of deals can be found off market as well. Have you tried searching for failed sales? Or done any door knocking? I’m a realtor in Gig Harbor, shoot me a message if you’re looking for any help!

 I have knocked on doors, had conversations with elderly that are interested in selling down the road, but these have been random experiences. I haven't gotten anything to the point of making an offer (yet). I'll send you a dm!

[Nathan Harden]

Sounds like you are looking for a cosmetic flip. What areas have you been looking in? I saw someone on here post something about cancelled/expired listings, great idea! I have found that door knocking is rather challenging right now because if someone has a low interest rate, a lot of people have a hard time giving that up. If you can find an off market deal from door knocking, driving for dollars, mailers, etc. More power to you!

Thats why I think you will have better luck with cancelled/expired listings because at least then you know that the seller has been at least considering selling recently.

[Ryan Engels]

Quote from @Nathan Harden:

Sounds like you are looking for a cosmetic flip. What areas have you been looking in? I saw someone on here post something about cancelled/expired listings, great idea! I have found that door knocking is rather challenging right now because if someone has a low interest rate, a lot of people have a hard time giving that up. If you can find an off market deal from door knocking, driving for dollars, mailers, etc. More power to you!

Thats why I think you will have better luck with cancelled/expired listings because at least then you know that the seller has been at least considering selling recently.

 Looking in North Tacoma, parts of Central Tacoma, Downtown Puyallup, and parts of Sumner. Have you had any experience in our area with flips?

[Nathan Harden]

Quote from @Ryan Engels:

Quote from @Nathan Harden:

Sounds like you are looking for a cosmetic flip. What areas have you been looking in? I saw someone on here post something about cancelled/expired listings, great idea! I have found that door knocking is rather challenging right now because if someone has a low interest rate, a lot of people have a hard time giving that up. If you can find an off market deal from door knocking, driving for dollars, mailers, etc. More power to you!

Thats why I think you will have better luck with cancelled/expired listings because at least then you know that the seller has been at least considering selling recently.

 Looking in North Tacoma, parts of Central Tacoma, Downtown Puyallup, and parts of Sumner. Have you had any experience in our area with flips?

Yes. I did a live-in flip in Orting. Ended up staying there a little longer than expected, about 2.5 years but it was nice because I was able to skip Capital Gains that way. Doubled our money in only a couple years so ended up working out very well. 

[Sherief Elbassuoni]

@Ryan Engels, I do deals in Tacoma/Puyallup/Sumner areas and I can share what worked and didnot wortk with me there!