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Updated 28 minutes ago on . Most recent reply

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Richard Helppie-Schmieder
#2 Rehabbing & House Flipping Contributor
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Flippers doing 20+ year,what are your acquisitions/financing/management strategies

Richard Helppie-Schmieder
#2 Rehabbing & House Flipping Contributor
Posted

I want to learn from others, but here, I will go first.

Acquisitions: Agent touches and contacts. Networking with family/friends. Hosting a monthly meetup. Telling all the Home Depot employees what I do (got a sick flip from one this year when a customer was looking). 

Financing: We have our fast lender and our regular lender. Fast lender is private capital, can close in 3 days, and a tight knit group. 12% rates and 2-3 points. Kiavi is our normal lender who is at 1.5 points and around 10%. We also utilize local banking relationships for our holds as they will do a rehab to hold product for us with only one closing on the front end.

Management Strategies: For our flip, we make hard deadlines for the project managers. Pre-closing, first 5 days, first 30 days. This has helped tremendously with scale! Just purchased house #20 for the year early July, and without these process and expectations, we would be a sinking ship.


Let me here some ideas on what you're doing if you are purchasing at scale to run your business and learn from each other.

  • Richard Helppie-Schmieder
  • Most Popular Reply

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    Marcus Auerbach
    • Investor and Real Estate Agent
    • Milwaukee - Mequon, WI
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    Marcus Auerbach
    • Investor and Real Estate Agent
    • Milwaukee - Mequon, WI
    Replied

    @Richard Helppie-Schmieder , you are one of the top 1% outliers. It's not even so much what you do, it's the amount of initiative and energy you bring to the table. This is a trait that I see with successful investors: they are trying 100 different things and immediately double down on the things that work for them. This is such a stark difference to the many posts you read here from a person who is trying to flip one house and asking for advice on BP on why is my cost so high etc..

    As an agent, I can tell you there is a magic ingredient and that is amazing design. 

    Every time I see a home that stands out from the average, we see offers going well above ARV. I am not talking about white cabinets and grey walls, that's not amazing design, that's is really just average (and on the way out BTW). I think this is true across most price ranges, but the effect is the strongest in the middle and upper price range. At least that's what I see here in Milwaukee.

    Exceptional design is hard to find, but not very expensive to install. Shadowboxes are a classic example of low cost - high impact. Playing around with lighting is also huge. Hidden light edges work well with modern or more rustic approaches.  

    The cool thing is AI can now do the design work for you.  

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    On Point Realty Group - Keller Williams
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