Starting a house flipping business - general questions
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Member since 2024 · 3 posts · 5 votes
2yGood evening SL, I would strongly advise/recommend starting with one or maybe two flips before you even consider taking on 10. I've been doing flips and BRRRR for decades and have never done 10 in a year. The band width it takes to carry even a few properties over the finish line is significant and the burn rate on your money quickly grows quite painful. I suggest you vet your entire team with one or two projects. Get those sold and evaluate the results and your team. Make adjustments and pick up a couple more. Software, spreadsheets, and marketing are the least essential and least demanding aspects of house flipping. All the best.
5 Replies
- Member since 2024 · 3 posts · 5 votes2y
Good evening SL, I would strongly advise/recommend starting with one or maybe two flips before you even consider taking on 10. I've been doing flips and BRRRR for decades and have never done 10 in a year. The band width it takes to carry even a few properties over the finish line is significant and the burn rate on your money quickly grows quite painful. I suggest you vet your entire team with one or two projects. Get those sold and evaluate the results and your team. Make adjustments and pick up a couple more. Software, spreadsheets, and marketing are the least essential and least demanding aspects of house flipping. All the best.
- Real Estate Investor · Lowell, MI · Member since 2009 · 13 posts · 13 votes2y
Quote from @James Montaney:
Good evening SL, I would strongly advise/recommend starting with one or maybe two flips before you even consider taking on 10. I've been doing flips and BRRRR for decades and have never done 10 in a year. The band width it takes to carry even a few properties over the finish line is significant and the burn rate on your money quickly grows quite painful. I suggest you vet your entire team with one or two projects. Get those sold and evaluate the results and your team. Make adjustments and pick up a couple more. Software, spreadsheets, and marketing are the least essential and least demanding aspects of house flipping. All the best.
Steven, I agree with James. Start with one or two flips and vet your team. Your team will be the most valuable asset you have as you scale your business.
- Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes2y
@Steven L., I also concur with James. Just focus on one deal at first. Don't get ahead of yourself, otherwise, your unrealistic expectations will lead to burnout (I've experienced this in real estate sales). Before even taking any sort of action, read, "The Book on Estimating Rehab Costs" by J Scott. The biggest problem I see time and again with newbie flippers is their contractor burning them. I've had clients acquire great properties with adequate spreads but because they didn't know how to source and manage their contractors, the deal was a nightmare.
Managing contractors, and as you noted, acquisitions, are indeed the hardest aspects. Sourcing and acquiring funds is relatively simple but that's not to say you should take it lightly. Please make sure you understand how short-term debt works if you're working with a hard or private money lender. To further address acquisitions, you can work with multiple vendors such as real estate agents and wholesalers. At the end of the day though, you're responsible for verifying all numbers. Do not take your agents or wholesaler's word for it!
Furthermore, this is constantly discussed on BP, be mindful of paying for a course. Some are helpful and will provide guidance and clarity, but most simply regurgitate information that can be found for free online.
Ideas for getting in front of property owners: SEO, BatchLeads, PropStream, Deal Machine, Ball Point Marketing, local meet-ups to network, etc. In my market, flipping is a full-time job/business. Anyone who tries to flip as a side hustle usually runs into trouble.
Good luck!
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes2y
Quote from @Steven L.:
I'm very interested in starting a house flipping business. Goal is to flip 10 houses per year using a GC.
Questions:
1. Does anyone have a software or app recommendation for rehab estimates?
2. How soon should I get a CRM vs using spreadsheets?
3. Recommendations for direct mail marketing?
4. Course recommendations? Specifically for acquisitions. Seems like acquisitions will be the toughest part of the business.
Many thanks
10 a year hmm, Let's do ONE, then worry about " getting more organized" Do you even have a deal yet? Also how do you recognize a deal, you cant ,,,, just yet.? You need to get to your local RE meeting. Connect with those doing deals, learn the cost of reno, NOT FROM BOOKS, 100% WASTE OF TIME ) Learn how to determine ARV, Software for reno est, NEVER. You will learn in 20 min waking the property. Before you know it you will walk through and know the numbers.
But again, let's get ONE going, AFTER you learn from an experienced investor, then everything else will fall into place. BTW do you have millions in cash? Not sire where you are planning but just using an avg of 300k all in on each, well that's 3 mill bux,
Good luck
- 2yJake BakerBusiness MemberFlipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 694 votes
We flip 10-20 houses per year in Jacksonville FL. Here is what I suggest.
1. I use dealcheck to underwrite my deals. I find their comp-ing tool and offer calculator very useful and they have a mobile app that is user friendly. Once you start running bids, you will get an idea of how much things cost.
2. I use ClickUp for task management. I create templates for each phase of the flip.
3. I get most of my deals by networking with agents. The next best ROI are SMS campaigns but regulations are always changing and may kill SMS in the future. Cold calling is great and bulletproof with regulations. I personally have never found an efficient ROI with direct mail but there are point that do it.
4. Read a couple of biggerpockets books, go to meetups and meet other flippers, and learn form experience. No courses needed.
Happy Investing!
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