When you're learning how to flip houses, you may not think that there will be a day when you'll be doing multiple house flip projects at the same time...let alone multiple flips in the same year.
But that day will come...
If you're just starting out of the house flipping business, chances are pretty good that you feel the need to domost of the rehab work yourself.
It makes sense. If you're flipping a house every 6 months or so, perhaps on a part-time basis, you may be tempted to think that the only way you can be profitable is to put in a lot of the "sweat equity" yourself.
If you don't learn how to buy houses right, get Continue reading
I have alluded to it on previous posts on how to flip houses with no money...
We've talked about it when discussing the importance of hiring the right contractor to run your rehab project...
We've also talked about how important it is to manage your rehab costs effectively to maximize your house flipping profits...
But today we spill the "magical" beans.
In a previous post on how to flip houses, we discussed a hypothetical $40,000.00 budget for repairs and talked about how important it is to control those costs if you want to learn how to flip houses for maximum profit.
But when you want to learn how to flip a house for profit, this budget number Continue reading
Here we are again at our Onset house flip in progress. I had Ralph on the video camera today (I think my other video guy Ryan was out fishing - can't blame him it was a gorgeous afternoon!)
So far we have been stumbling across new findings throughout this rehab. By new findings I mostly mean that we have had to do quite a bit of re-framing, some of which was expected and some of which was not expected.
Here we are again at one of my latest house flipping projects located in Onset, Massachusetts.
I am excited about this specific property because this home is going to have a lot of sleek and attractive features. In addition to the beautiful rehab work we are doing to this property, this house is located walking distance from the beach. How can you beat that?
Hello! Just wanted to say a quick thank you for checking out the House Flipping School blog. I'm having an awesome time developing this blog and it's great to know that many aspiring house flippers are gaining value from this site.
Creating a helpful online resource has always been my #1 goal right from the start, and believe me it feels great to know that at least some of you are gaining knowledge and taking action.
Before I start getting all sentimental lets talk a little bit about a property in Wareham, Massachusetts that is currently three weeks into the renovation process. So far work on this house flip has been going extraordinarily well. I'm very happy with the progress the guys have made so far on this property - nice work fellas!
Since purchasing the property we have completely stripped down a couple layers of old shingles off the roof. Whenever I have doubt with a roof, I simply choose to not mess around with it one bit, and instead replace the roof to be on the safe side.
We have a new roof on this house flip property which is not only safe, but also looks very nice.
If you remember in the first post about this house flip (which you can view by clicking here) the previous owner had a "not so attractive" bench protruding from the front of the home. Well we went ahead and removed the bench last week, which will help improve the curb appeal of this property.
As we have discussed before, there are pros and cons of using a general contractor versus hiring subcontractors. However in to know how to start flipping houses for profit, its essential to control the rehabilitation spend as much as you possibly can whichever way you choose to go. In these examples below, we will assume you are managing the rehab yourself without the assistance of a general contractor.
Here are a few ways to get into flipping houses for profit by controlling your spend on the rehab, while at the same time locking in maximum profitable gains in the process.
Using a master budget spreadsheet is a good way to keep track of the repairs needed and all the moving parts with relation to the rehabilitation. You can use the spreadsheet as a snapshot of where you are at any time in the house flip process.
In the beginning of your rehab, you should first get multiple estimates from multiple sub-contractors like electricians, plumbers, painters to get a feel and a quote for how much each part of the rehab will cost. As a rule of thumb, get Continue reading
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.
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.
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.
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.