Quick question, or what would you do? If you had a lot of money in the bank to fund flips would you do it while still working a 9-5 or don’t even bother getting a 9-5?
Sacramento CA · Member since 2019 · 25 posts · 23 votes
7y
If you have that much free time you are not doing enough. Every moment I have that is not with my family or in my businesses I am networking and cultivating business realtionships.
Lender · Chicago, IL · Member since 2018 · 352 posts · 147 votes
7y
@Joseph Nardiello unless you plan to buy and rehab with your one cash, you will need a job, even part time In order to obtain fiannicing. I would keep the part time job for a while, do your first couple of flips and after decide which course is best for you. After 2 years of rehabbing, you can use that as self employed income. Btw, you should consider renovation loans with Fannie HomeStyle, it’s only 15% downpayment for investment properties, much safer than putting all that cash into the purchase and Renovation
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
7y
@Joseph Nardiello Sure you can make a great living flipping houses . You can also lose money just as fast . You will have lots of well funded and experienced competition . The biggest problem is finding the deals . They arent there when you want them . You may go months before you find a deal , if you find one at all .
@Jordan Deeney well the whole reason I want to do real estate is the freedom part. If I’m still work a 9-5 there wouldn’t be a point in doing real estate I feel.
@Syed H. Thank you.and I do have a lot of capital. I was born into some money.
Oh boy, I am betting this is not going to end well. Inherited money, doesn't want to work too much, unrealistic profit expectations, no passion for RE. Probably has watched a lot of flipping tv shows.
Contractor · Cleveland, OH · Member since 2014 · 317 posts · 181 votes
7y
@Joseph Nardiello I quit a six figure job as an attorney to flip full time in 2015. I’ve had a lot of bumps in the road up until now but now I’m running my own Construction company and I’m obviously full-time. The biggest thing for someone new is you should expect some learning curve and not do great until you get the hang of things. Sure you can make money, depending on what market you’re in, but there are more investors, competition, etc. so no matter what, always focus on getting a good deal on easy projects to fix up. If you have w2 income leverage that for the time being to go conventional. If you want to talk shop I’m always down to chat. I live in la and flip in Cleveland.
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
7y
This is too general of a question. How much is 'a lot of money'? What is your ability to execute? What are your long term goals? How well do you really know your market? How much tolerance do you have with putting all of your money on the streets? Do you need leverage?
Rental Property Investor · Cleveland, MN · Member since 2017 · 518 posts · 354 votes
7y
If I had a LOT of money, I'd buy the largest multi-family that I could afford. Then I'd have property managers, maintenance people, etc. to run it while I oversee the whole thing. My time would be spent overseeing and looking for the next investment. I think that would be more what you are looking for. I flip houses to make the cash to invest in such a place. I'm almost there!
Flipper/Rehabber · Fairhope, AL · Member since 2017 · 39 posts · 13 votes
7y
@Ola Dantis. Yep. Running around. I was on a Jobsite this morning to scrub a nasty tub and pull a toilet before the glazer showed up, because no one protected it through demo and texturizing.
Flipping is a job, even AND especially, when you are the one signing the front of the checks.
Now, off to update QuickBooks, find money, find deals, find contractors...
Hey Jared, good job with your successful construction company.
Do you have an in-house construction crew for your projects or you have a team of several independent contractors?
I am trying to get to the point where I would have 5 to 10 flips going on at the same time and I would like to know which would be more effective - in-house crew vs team of several ICs?
Contractor · Cleveland, OH · Member since 2014 · 317 posts · 181 votes
7y
@Francis I. Everyone is an independent contractor, so you have to have enough work to put everyone on contract. 1099 and not keeping track of hours is the legal way to do it. But in the beginning, some semblance of hours tracking is likely going to be needed under the table. The only other way is to set up a payroll system, make everyone an employee, have workers comp, and have everyone's taxes taken out immediately instead of at tax time. This involves a lot of hidden expenses, but it does automate things... and unfortunately, it seems like we're probably too big to avoid it this year.
We have a solid carpenter who can do a lot of different trades, like roofing, tuckpointing, framing, foundations, etc. and he's our most expensive guy. One guy heads up a painting crew. And we have 2-3 demo guys who can do a lot of different things, like demo, landscaping, picking up materials, etc. We're to the point now where we need 3-4 more guys, and an assistant for my gc literally just to make phone calls and pick up materials. It's a good type of busy, but you definitely have to scale comfortably so you don't bring on too many people and then one day you wake up and you have nowhere to put people because there's not enough work. I hope that made sense. Also it's 3am on a Saturday rn... so you see the type of work I've been having to put in!!!
Investor · Palm Harbor, FL · Member since 2013 · 2 posts · 0 votes
7y
How much money we are talking ? You keep saying I have lot of capital. Lot of capital for you could be 10k in real estate it may not be lot of capital. To give you right advise to know amount of capital you have is important.
Real Estate Broker · Santa Ana CA [South Coast Metro] · Member since 2016 · 459 posts · 202 votes
7y
Just when you think you got flipping figured out you realize there are so many moving parts and it is hard to create a duplicatable and sustainable business model. Everything takes twice as long and costs twice as much and taxes really suck.
If you do not need a job to sustain you it sure helps in getting financing and refinacing. Until you can create enough cash flow from property lenders are tough to convince to lend. You can get hard money but between lenders and realtors they are the ones that really make all the money on a flip.
So if you wanted to do flips I would start out with an owner occupied fixer, get a rehab fannie mae with just 5% down. fix, live and refi. Live there 2 years and sell you get that money tax free. If you fix and flip within the first year you get killed on taxes.
@Bruno Nunes ya freedom is a big thing for me. To do whatever I want. Do a couple of deals a year, live within my means. Not to be stuck at a 9-5 I hate.
What I would consider for what your goals are isn't flipping, its private lending. Literally all the freedom you can handle, and a solid return! I'm thinking about getting into it because I'm having a hard time finding deals right now, so might as well make something until I find my next project.