Real Estate Agent · The Panhandle | The Emerald Coast | Panama City Beach | Destin · Member since 2017 · 266 posts · 103 votes
What has been the hardest part of flipping for you? Was the hardest part different when you first started vs now that you have a lot of experience under your belt?
What has been the hardest part of flipping for you? Was the hardest part different when you first started vs now that you have a lot of experience under your belt?
I have been fix and flipping for last 7 years. Finding the right property with good margin is always been an issue for me. Being a RE broker for over 30 years gives me pretty good experience to analyze the property. Tax rate is not a hurdle for me cuz I structure it accordingly and I do volume rather than high margin. If you are a newbie in fixing and flipping, you have to have a good contractor. They could make your life miserable. And don't believe the numbers wholesaler throw at you as an ARV. analyze the property ARV yourself. I analyze at least 20 properties before buying one from a wholesaler
Probably accurately assessing the future value of the property. If you are off, or your flip gets more expensive, your thesis for your investment could be sunk.
I've found it helpful to be more skeptical (which can be hard for me), and to build in some buffer budget in the numbers.
Finding ARV or future price in my case is the easiest part ….. my sold price is hitting the same accuracy as how the number being calculated from ten years ago.
actually ….. flipping is easy job WHEN we purchase in high demand area and we WAIt for two years before we sell our inventory…
truly in my case the biggest issue is just money hahaha LOL if we can split 1 mil from ten investors 100k each can tell which house gonnna sell for 1.4 mil from todays price lol , it is almost risk less in high demand area.
I think this thread summed it all up. Everything mentioned here is part of it. It's managing multiple moving parts and multiple variables. You have to know how to stay on top of all of it and keep the project moving. The contractors, time, cost over runs, delays, draws, unexpected surprises, finding the deals, passing inspections etc. It got a bit easier because in the beginning the systems were not fully developed. As time went on I knew more of what to expect and kept the good people/resources around me that worked in the past. I can better address and foresee potential problems and mitigate. Having a passion for it also helps!
This is a really good point actually. The hardest part is probably managing multiple things at the same time and doing them all well
What has been the hardest part of flipping for you? Was the hardest part different when you first started vs now that you have a lot of experience under your belt?
have their own crews
Contractors, they are the # 1 piece of the puzzle. Everyone thinks it finds deals, but nope, once you get ne if you do not have the right contractors it will turn into a nightmare.
Agree. After finding the right contractors, run the numbers once again,
Hello Kyle, It is a great idea! If you can systematize budgets and SOWs for fixing and flipping houses like new home builders, you'll be a trailblazer. There could be software available that might assist you in achieving this goal. Best of luck in your remarkable endeavors! Please keep us posted.
Phenomenal question and great answers so far on the thread! I have two things and an honorable mention.
1. Contractors. Finding contractors that you can trust, do quality work for a good price and will look out for you instead of only themselves are so hard to come by! The hardest thing at the beginning was building out a list of contractors that will do good work, in a timely manner and not cost me an arm and a leg.
2. Finding a deal. The competition in my market is fierce. There are a good amount of people who flip for a living but also a lot of one off people who will do 2 flips a year. Getting to the deal before others and sometimes bidding against 3 other people to get the property is a challenge!
My honorable mention is budgeting just because all the unknowns of a distressed house has. My goal next year is to systematize budgets & SOWs for flipping houses the way new home builders systematize theirs. I've been told this is impossible, but imagine a world where you can run a fix & flip company the way new builders run theirs?
It is a great idea! If you can systematize budgets and SOWs for fix and flipping houses like new home builders, you'll be a trailblazer. There could be software available that might assist you in achieving this goal. Best of luck in your remarkable endeavors! Please keep us posted.
also one of my problem is physochology, this is the hardest part as well. I always want to repair/build/something. I like before and after so much I can't leave any day without coming to contractor ask them to fix something. So rather than spending some money I would rather build and repair, build and repair other people home, there's excitement when I do flip, sometimes it's uncontrollable and addicting.
I love so much house with termite damage and roof issue.
on actual w2 engineering job I do the same, build and repair is my hobby LOL it's addicting profession.
Does anyone experience Philly, PA? Are there any attractive rental deals still available in the city? Specifically, I am interested in options that do not involve extensive renovations or repairs
Does anyone experience Philly, PA? Are there any attractive rental deals still available in the city? Specifically, I am interested in options that do not involve extensive renovations or repairs
There are great opportunities in Philly for rental properties. Getting something turnkey isn't all too rare of an occurrence. Biggest attraction to Philly is the rent to value ratio is usually pretty good. If you're looking for something to fit into the 1% rule and exceed that, you won't really have a problem finding something. If you'd like to connect and talk about this some more, i would be happy to talk.
What has been the hardest part of flipping for you? Was the hardest part different when you first started vs now that you have a lot of experience under your belt?
Hardest part is the acquisition. Getting the property cheap enough to allow for a big chunk of profit is always going to be the bottleneck. Not that the other stuff isn't hard, cuz it is, but this is definitely the hardest.
LOL, reading through these responses it would appear that the hardest part of flipping is acquisition, due diligence, budgeting, dealing with contractors, negotiating, psychology, financing and well, all of the parts of flipping.
LOL, reading through these responses it would appear that the hardest part of flipping is acquisition, due diligence, budgeting, dealing with contractors, negotiating, psychology, financing and well, all of the parts of flipping.
Over analyzing every single detail doesn't work either, its fluid......things beyond your control. Sometimes you just have to roll with the punches.....
LOL, reading through these responses it would appear that the hardest part of flipping is acquisition, due diligence, budgeting, dealing with contractors, negotiating, psychology, financing and well, all of the parts of flipping.
Lol, agreed, its (almost) like running a business ;)
LOL, reading through these responses it would appear that the hardest part of flipping is acquisition, due diligence, budgeting, dealing with contractors, negotiating, psychology, financing and well, all of the parts of flipping.
Lol, agreed, its (almost) like running a business ;)
LOL, reading through these responses it would appear that the hardest part of flipping is acquisition, due diligence, budgeting, dealing with contractors, negotiating, psychology, financing and well, all of the parts of flipping.
Over analyzing every single detail doesn't work either, its fluid......things beyond your control. Sometimes you just have to roll with the punches.....
Very true, although I was just referring to what I saw in the comments and basically every aspect of flipping was considered "the hardest part" by someone in here.
LOL, reading through these responses it would appear that the hardest part of flipping is acquisition, due diligence, budgeting, dealing with contractors, negotiating, psychology, financing and well, all of the parts of flipping.
Over analyzing every single detail doesn't work either, its fluid......things beyond your control. Sometimes you just have to roll with the punches.....
Very true, although I was just referring to what I saw in the comments and basically every aspect of flipping was considered "the hardest part" by someone in here.
That makes sense to me. Everyone has different skills and strengths and will find different parts of running a business challenging.