I just downloaded The Book on Flipping Houses by J Scott, and wanted to know what others out there took away from the book.
What passages really made something click in your head? Could you name one tip that helped your business?
Just trying to get a good idea of where the gems might be before I dive in, which I'll do regardless.
@Gregory Flores, Jr. ,I'm not sure where to start on this one. J Scott's Book on Flipping Houses has been instrumental for me in getting started in real estate.
Are you analytical, by nature? J certainly is, and for someone like myself who works in the "business optimization" world (really hate this terminology, but its widely understood, so...) it really resonates with me. I work to a large degree with process mapping, value streams, lean six sigma, etc. and so, for me, the gold was in the spreadsheets that came with the purchase.
In particular, the deal analysis spreadsheet has been a staple in my day-to-day real estate work. I have probably analyzed 50 properties using his spreadsheet (albeit slightly modified) and I only got started about 3 months ago. To be honest, I'm not sure if I got that spreadsheet from the book purchase or on one of his posts/blogs, but I highly recommend tracking it down either way. The excel-based spreadsheet basically breaks the financial evaluation down into 4 categories and the costs associated with each: 1) Purchase Costs; 2) Rehab Costs; 3) Holding Costs; and 4) Selling Costs. It allows you to itemize your expenses within each category and, by using various formula functions, serves as a calculator for net profit.
Overall, if you are looking for the "one-liners" of golden wisdom or motivating language, this really isn't that kind of book. I'd recommend Kiyosaki, Tim Ferris, etc. books for that. Rather, J's book is more of a blueprint or roadmap for how to systematically approach both finding and flipping distressed properties, as well as estimating rehab costs (the 2nd book in the package).
Hope you enjoy the book!
@Benjamin Ervin this is exactly what I wanted to get into. My background is in finance and investment management, so I was looking for something analytical as my partner and I look to begin our first flip in the first quarter of 2018 (still sorting private and hard money, but we have a 28 year veteran flipping project manager who we can learn from, and an LLC).
I actually got excited when I saw all the “bonus” material that came with the books! Sounds like we’re similar in those respects. Thanks again for the feedback, and I’m woshing you luck as you continue to get out here and find deals.
I'd say the best tip since you resonated with that one is to continue on and read the book on estimating rehab costs, which is another great blueprint to get your construction legs.
I’m definitely knocking both of these book a out by the new year, along with notes. I’ve got a few good spreadsheets as templates, and will look to modify them to fit our needs so it’s just plug and play during analysis. I know The Book on Estimating Rehab costs will be key in that. The CO market is crazy, but we need to find deals where we can let numbers to work.