What advice would you give to a new house flipper?

Question

I've been in the industry for 30+ years and I've accumulated some valuable knowledge, but I'd like a fresh perspective from the Bigger Pockets community.

If you could give one piece of advice to a new house flipper, what would it be?

Thanks,

Chris T. · Answer

And whatever is the time frame for the project, add more time on it!

Plus budget 7-10% selling costs on projected sales prices. Use the lower range of the ARV.

Susan K. · Answer

What ever you think it is going to cost - add 20%.

Alex Young · Answer

Take pride in your work.   Half-assed work only attracts half-assed buyers... Be proud in an honest product

Benjamin Ervin · Answer

@Steve Pollack, I am a new house flipper who on 13 August, barring any setbacks, will have completed my first intentional flip from close-to-close.

Here is what I would submit:

- Get Educated:  There are endless resources available to aspiring real estate investors today.  New flippers can choose formal (paid for) educational programs, free education with due diligence from resources like BiggerPockets, podcasts, etc., low cost or free "mentor" scenarios through networking, shadowing or otherwise.  The key is to learn the language, learn the math and learn the market.

-  Commit fully to your goals: Getting started is hard and finding success is against the better odds.  Most, if not all, newbies will fail without a strong commitment and clear focus on what they want to accomplish.  You have to start with the end in mind, and clearly defining (at a minimum) your short term goals and reason for wanting to achieve/ commit to those goals is a must.

- Set realistic expectations: Understand that you will not get rich over night and certainly not on your first deal.  Expect challenges of all kinds (delays, scope and budget creep, lost sleep at night and anything else you can imagine), and embrace them.  If you haven't committed, this part will beat you every time.

- TAKE ACTION: This is by far the most important piece of advice I could give and if I was required to give only one (as your post requested - sorry).  You can become the most formally educated investor in the world, but you'll never make a dollar if you don't do a deal.  The action isn't important, what is important is just to DO SOMETHING.

Shawn Ward · Answer

@Steve Pollack

1. Get a mentor (be an unpaid intern locally or invest in a project run by the mentor and shadow them)

2. Learn and be a sponge

3. Start to reseach deals and have your mentor give you advice

4. do not be in a hurry

5. find out what expertise you bring and which you need from a partner or to outsource

6. In 6 months you'll be lethal and ready to go

All the best!

sjw

JD Martin · Answer

Ignore virtually everything you see on TV, as most of it is a lie or grossly exaggerated.

Steve Pollack · Answer

Thank you everyone for the replies. I will be sure to forward this information along to others in the community.

@Shawn Ward , all of those steps are vital to starting out. 2 and 4 stick out to me the most. Wanting to learn and being patient are 2 attributes I have seen in successful newcomers.

@JD Martin  : It's true, many people see the shows on HGTV and think that the process is easy and all fun, no obstacles.

@Susan K., Agreed, the process always costs more than you think it will. and @Chris T. Always add more time than expected!

@Benjamin Ervin Couldn't agree more. While all steps are necessary for being successful, at some point, taking action is the only way to learn best.

Thanks everyone!

Kuba F. · Answer

Late to the party but I guess I'll give my 2 cents anyways.

99% of people involved in getting your flip from purchase to sale have some sort of conflict of interest with you and the #1 way of overcoming this is with knowledge.  This is why mentors can play an important part in the pursuit of that goal, however ironically they frequently also suffer from that same conflict of interest.

What advice would you give to a new house flipper?

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