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Start flipping houses today with Insource Funding.

Updated: Mar 5, 2019

  1. Spend time educating yourself before jumping in. No, not with some $49,777 mentorship through the guru-of-the-week, Look online and read everything you can on house flipping. 

  2. Meet with a local house flipper or two in your area. Don’t view them as competition, but as heroes. Help them out. Find them a deal. Build that relationship. Learn. Grow.

  3. Learn your city, inside and out. Yes, this means getting into your car and driving up and down every road you can. Talk to people. Find out what others think about different locations. Become an expert on your town.

  4. Get to know some real estate agents. They can help you find great deals, get you comps, help you connect with lenders or contractors, and a lot more. Don’t settle for an average agent though – find a great investor friendly agent.

  5. Don’t let fear keep you away from getting started, but use that fear to keep you careful.

  6. Consider partnering with someone more experienced on your first house flip. Remember, 50% of a great deal is better than 100% of no deal.

  7. Understand that big money can be made when house flipping, but big money can also be lost. Don’t go in unprepared.

  8. Is your spouse onboard with your house flipping plans? If not, don’t even think about starting.

  9. If you plan to do the labor yourself, you’ve bought yourself a job. Nothing wrong with that – I’ve done it multiple times. However, it IS a job. If you want to run a scalable business, learn to budget for others to do the labor.

  10. Take inventory of your skills. Can you manage people? Can you do the numbers/math? Can you organize 50 different moving parts? These are essential skills for any house flipper to have. If you lack them, consider working with a partner.

  11. Flipping houses takes money, but that money doesn’t need to be 100% yours (or even 0% yours.) Spend time up front learning about how Insource Funding Can Finance your flip, including the no (and low) money down strategies discussed in our recent book “The Book on Investing in Real Estate with No (and Low) Money Down” by… me!

  12. Watch the flipping TV shows, but understand that they are mostly fake. But that’s okay – they are great for inspiration and you might even pick up an idea or two.

  13. If you are not familiar with how basic home construction works, spend some time at Home Depot or pick up a basic book on home improvement. You don’t need to be a pro, but you do need to understand the basics.

  14. Understand what improvements are needed in your market and what improvements are not. Granite countertops? Hardwood floors? Just because you saw something on a flipping TV show, doesn’t mean it’s needed (or wanted) in your neighborhood.

  15. Start building your house flipping team before you buy your first flip, but don’t think that it needs to be formal. You aren’t forming the next Avengers group. Just start networking and finding who the best people are in your town to work with.

  16. Read my article from last year “How NOT to Flip a House: An Embarrassing Story of Wasted Time, Money, and Opportunity.”  Learn from my mistakes.

Shopping for Great Real Estate Deals to Flip

  1. Focus on one particular area of your city when looking for a flip. If you have to sift through 100,000 homes for sale, it will overwhelm you. Develop what we call, your “farm area.”

  2. Know your criteria. What is it you are looking for? Five bedroom homes? Two bedroom homes?  Three thousand square feet? One thousand square feet? Write down what you are looking for so you don’t waste time sifting through deals you don’t want.

  3. If you are shopping on the MLS for deals, use a real estate agent. The seller pays their commission so it’s free for you!

  4. Flip houses in locations that people want to buy.

  5. Flip houses that look like houses people want to buy.

  6. Look for the worst house on a nice street.

  7. Don’t underestimate the importance of the condition of the neighbors’ homes. The house next door to your flip might look great in comparison to the wreck you are about to fix up, but after your flip is flipped, will your neighbor’s home look like a dump?

  8. Neighbors with dogs can kill the sale of your flip. Trust me. Been there, done that.

  9. Connect with local real estate wholesalers in your area who can find and bring you incredible deals, but understand that 99% of wholesalers have no idea what they are doing. Look for the 1% who do.

  10. Properties with a bad smell can often be the best flips. Bad smells are typically easy to remedy but drive away most of the competition. Just be sure to understand the source of the smell before closing on it!

  11. Consider direct mail marketing to find deals. For more info.

  12. Driving for dollars can be a great way to find deals. Yes, that means getting into your car and driving around, looking for potential house flip opportunities. Combining this with your direct mail can be incredibly effective.

  13. Talk to the neighbors of any potential flip when shopping. You can often learn interesting and helpful things about the home (“yeah, this place floods every year!”)