7 Practical Tips for Your First Real Estate Property Flip

You see, I’ve managed to carve out a successful career out of real estate investing and then in coaching people to replicate this success as well. Over the years, I’ve seen many of my students go on to make big wins. But then, I’ve also seen a lot of people flop at house flipping. From my humble beginning as John Common to earning the nickname Jack Rainmaker in real estate circles, you can easily count on my experience in this regard. In this post, I’ll share with you a few practical flip tips and help so you can achieve real success with your first and subsequent property flips.

To start with,

1. You need the right skills and knowledge

The problem with most people is they think this is super easy. This is no thanks to shows like HGTV that makes this seem easy peasy lemon squeezy. But take it from me that this is more than just buying a house, doing some cosmetic fixes, and then waiting to make a killing. You have to realize that house flipping is more about entrepreneurship and you need the right education, connections, and determination to make it work for you.

2. Understand your market

To succeed at house flipping or any other form of real estate investing, you need to have a robust knowledge of your local real estate market. You have to know what type of house investors are willing to buy as well as where people are willing to live. It’s also important to always research listings and foreclosures for opportunities in your markets. This is like any other entrepreneurship endeavor so you need to make market-informed investment decisions.

3. Understand your financing options

Many times, people approach me for my views on real estate investment financing. They are usually like Jack Rainmaker, what would be your ideal real estate financing recommendation? The truth is that you have a range of options in financing your real estate investments but your ideal option will depend on your circumstances. You can pay in cash, leverage lender financing or take out a HELOC for your home purchase. Each of these options has inherent pros and cons you’ll have to carefully evaluate considering your circumstances.

4. Up your negotiation skills

Remember when I said house flipping is more of entrepreneurship? Well, you have to be able to negotiate offers in a way that helps you get value from your transactions. You’ll have to deal with sellers, buyers, contractors, and others. You’ll have to sharpen your negotiation skills because at the end of the day, the less money that goes into a purchase, the more you likely will make when you finally flip the property.

5. Understand the 70% rule

When you’re trying house flipping for the first time, you want to make sure you do not overpay. This is where the 70% rule comes in. This is more of a guide than a rule. The 70% rule stipulates that investors should not pay more than the 70% of a property’s after repair value including the repairs needed. This is no foolproof rule however, but it works quite well on many occasions.

6. Adopt an entrepreneurship mindset

It pays to approach house flipping with an entrepreneurship mindset. You have to be able to identify risks and opportunities. You have to be able to determine how much an average house can cost you in repairs and other expenses and have to work with good and reliable contractors. There is also a need to build valuable relationships to widen your network for long term business success.

7. Finding a mentor

From being John Common to becoming Jack Rainmaker, I’ve personally experienced the difference in having an experienced and successful real estate investor by your side, giving you valuable help and advice along the way. At times, this may involve a little financial commitment but a great flip coach is always worth more than the investment.

Bottom Line

House flipping may seem easy on the surface but it’s not devoid of risks and challenges. This form of real estate investing should be treated as one would treat an entrepreneurship venture. A lot of skills, education, connection, and more will have to go into achieving real success, not just with your first flip but also in your subsequent attempts.

If you’re interested in house flipping and would need expert guidance and advice, I’m John Common and they call me Jack Rainmaker in real estate investing circles. I would like to help you get started on a good note so you too can start making it rain. You can contact me directly at 702-609-5909 or schedule a free 20-minute telephone appointment through my portal to get started. I can’t wait to see you succeed. Cheers!