How to Flip Houses With No Money Using “OPM”
Learning how to flip houses with no money is one of the biggest sticking points most people experience when trying to learn how to flip houses.
They just don’t know whether to get the money first or get the deals first.
So which one do you do first?
There is really no right or wrong answer to this. The bottom line is that in order to learn how to flip houses with no money, you need to be working both sides of the house flipping equation all the time.
If you get a house flip deal first but have no money then you need to be confident that you'll find the money by using "the Secret" to house flipping success.
Of course, if you get the money first and have no deals then you need to find a deal real quick.
Although it may be hard to visualize...the bottom line is this: money is everywhere - you just need to go get it!
How to Flip Houses With No Money...The Magic of OPM
Flipping houses with no money involves using other people's money - called "OPM" - to finance your deals. OPM can be found Continue reading
Sub-contractors and Home Inspections
Flipping Houses and Building Relationships with Sub-contractors
Developing and maintaining good relationships is essential to flipping houses successfully. My house flipping team of contractors, lawyers, real estate agents and various other people really are 100% essential to the success of my business.
Contractors in particular are an incredibly important piece to the puzzle. Having good working relationships with general contractors and sub-contractors is certainly an aspect of flipping houses that can’t be overlooked.
I’ve read a lot of Napolean Hill and Dale Carnegie books throughout my business career, and I highly recommend that you check them out. How to Win Friends and Influence People, written by Dale Carnegie is all about how to create and maintain good relationships. The skills Hill teaches in his book are the same skills I use on a daily basis when interacting with my sub-contractors.
We are currently putting the finishing touches on a local house renovation, and I’m happy to say that things are going great. However we did recently encounter a little bump in the road with an electrical inspection. To put it simply, the inspector came by the property, walked around the house on his own, and found numerous areas in the home that he was not happy with.
Subsequently the house failed the inspection.
How Much Does It Cost to Flip a House?
When beginning house flipping, one of the biggest questions people have is how much does it cost to flip a house?
As there are so many factors that go into flipping houses, the answer to this varies widely. Depending on rehabilitation cost, the cost can vary from hundreds of dollars to hundreds of thousands of dollars!
However, if you are flipping houses and determine that you may spend several hundred thousand dollars, you will want to be extremely clear on what the selling price should be. So in order to best answer the question of how much it costs to flip a house, its best to begin with the end in mind and examine the back end instead of the front end.
And we do this through the use of ARV.
How Much Does It Cost to Flip a House: ARV
In order to figure out how much it will cost to flip a house, you need to know what you can fetch for the property itself when its ready for resale. When you know this, the other costs associated with the house flip will start to come into focus better.
One of the best ways to figure out ARV is by comparing similar properties that have sold in the same area in your target market recently. This is known as comps.
A local realtor can help you determine this very quickly, which is one of the reasons why Continue reading
Seaside Onset Property
Flipping Houses in Onset, Massachusetts
It may be a bit messy but this property just wreaks of opportunity!
We just purchased this three bedroom single family home in Onset, MA and have thus far not done any work whatsoever to the home. If you are just getting into flipping houses then this post is a must read - you'll get to see exactly what condition most of the houses we rehab are in when we purchase them.
First thing I noticed about this home was the smell. The previous owners were big time cigarette smokers and it was apparent that they had no qualms about smoking indoors. On top of that, the smell was compounded by a reasonable amount of trash, rotting food and even fecal matter left over from pets.
However, that smell is really just the smell of opportunity! If you plan on house flipping for a living then it is inevitable that you will run into homes like this one. To be honest, this home is just the tip of the iceberg. Many houses that we flip are much more run down, smell even worse and are chock full of garbage.
It's these rundown homes that present the most opportunity for making a lot of money. Check out the video below to get a better sense of what I am eluding to.
When and When Not to Knock Down Walls
An important house flipping tip is to remain open and flexible to new ideas and opportunities as they arise. Another great tip is to learn to be OK with unexpected shortfalls and when your initial idea doesn't peter out as planned.
Often times we scratch certain plans and ideas because they just do not end up making economical sense. The plan looks great on paper, but would end up costing more money than the value we would gain from that particular aspect of the renovation.
When I first walked through this particular house in Onset I had a great idea. To increase the potential market for this house I figured we could expand a narrow room on the first floor into a spacious master bedroom.
Having the master bedroom on the first floor would be ideal for a senior citizen or person with a disability. A first floor master bedroom would be super convenient for anyone who has trouble walking up stairs and is a nice house flipping tip to have under your belt.
House Flipping 101 | Four Essential Rules For Beginners
I am often asked "What do I really need to know to start flipping houses...y'know, like a house flipping 101 guide for beginners?"
If you are just getting started house flipping, there is much to learn.
Can it be done? Absolutely. But there is no one house flipping 101 course you can take to learn it all. You need to go out and do it on your own, gain experience and learn from your mistakes. If you can shorten your learning curve and avoid the big pitfalls, consider yourself getting your house flipping 101 education through "on the job training".
Experience after all, is the greatest teacher.
Flipping Houses Takes Time to Master
If there were a house flipping 101 course like how they do it in The Matrix to immediately make you an expert in flipping homes, all us real estate investors would surely do it!
However, there is no singular course or no single Continue reading
Knocking Down Walls and Expanding Bedrooms
Here we are on the second floor of one of my latest renovations located in Onset, Massachusetts.
Unfortunately I forgot to mention to cameraman Ryan that today's property was not in the best of condition. You really had to watch your step as the top floor was loaded with dog poop and plenty of other "things" you would not want to step in.
Obviously not ideal terrain for Ryan's flip-flops! From now on, wearing work boots when entering a new property will be one of my top house flipping tips.
The situation on the second floor of this property was rather dire. Currently there are three bedrooms on the second floor. To access the blue bedroom you must first pass through the red bedroom which is not ideal and must be changed.
After consulting with my contractor and architect we decided to knock down the wall that is currently separating the blue and red bedroom. This is not a load bearing wall and I could probably knock it down with my own two hands if I wanted to.
Flip and Grow Rich | The Master Mind Principle
This flip and grow rich principle can insulate you from failure.
You can accomplish twice as much in a year flipping houses using this principle.
It has been used by every hugely successful industrialist or businessperson in the past 200 years including Andrew Carnegie, Bill Gates, Warren Buffet, Henry Ford and even Steve Jobs…
Even the United States of America used this flip and grow rich principle to write the Declaration of Independence and the Constitution of the United States.
Flip and Grow Rich with Other Like Minds
When most people think about going into business for themselves, they usually think of rugged individualism, self determination and a renegade "do it my way" attitude of independence and self-sufficiency.
Nothing could be farther from the truth.
To flip and grow rich flipping houses, the key is to partner with people who have similar definiteness of purpose.
Sure, you may need to split the profits with them. You also may need to give up a little control. You may need to compromise. You may need to swallow your own ego a bit at times...
However, when like-minded individuals with complementary skill sets are Continue reading
When to Hire an Architect
It is very important to rely on experts in certain situations. We don't always call in the experts but we do use architects and engineers on certain house flipping projects when we have to.
I decided to hire an architect to help assist with a floor plan for this particular house flip property located in Onset, MA. I probably did not have to use an architect for this project, however the current floor plan is a little funky and having the help of an expert will make life a lot easier down the road for my contractor and I.
Right now this home has a small bathroom that does not fit well with the overall floor plan of the home. There is a skinny and congested kitchen towards the back of the house that also needs some TLC.
How to Flip a House Successfully: A Beginners’ Guide
When first learning how to flip a house successfully, some would have you believe its a simple process.
I'd LOVE to tell you that house flipping is super easy and you'll make a pile of cash on your very first flip...but chances are...you won't.
Does it get easier the more house flips you do? Absolutely.
Is it easy when you first start out? No way.
But it is very possible to learn how to flip a house successfully very early on in your house flipping career. Enclosed is a brief overview of how to do your first house flip in very broad terms.
Of course, there are always more resources and tips here to help you in more detail.
How to Flip A House Successfully...A Brief Overview
Knowing how to flip a house successfully involves an extremely complex process of multiple steps and check offs that need to be done in a very precise order to ensure maximum execution. But don't be intimidated because the fun thing about house flipping is that Continue reading