How To Flip Your First Home!

This video is about how to flip, fix and flip your first property. If you’ve followed me at all, you know, I’ve been flipping for over 13 years, and I’ve done over 1600 flips. Let’s define flips: There are wholesale flips, wholesale flips, and rehab flips. And on this video, I’m going to be going over how to find get and flip your first rehab flip. So that you can actually get into the space of rehabbing and collecting those big checks. Now I’ve done well over 500 of these in my career. But I’ve done a lot more wholesaling because the speed of the money. But with that said, let’s dive into how I can help you get your very first fix and flip.

👇👇 𝐉𝐨𝐢𝐧 𝐎𝐮𝐫 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐅𝐚𝐜𝐞𝐛𝐨𝐨𝐤 𝐆𝐫𝐨𝐮𝐩 👇👇

💥 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 ➜
📞 𝐁𝐨𝐨𝐤 𝐚 𝐂𝐚𝐥𝐥 ➜

If you are actively fixing, flipping, this might still give you some good tips and tricks that I currently use in my business to help you get a couple more in the pipeline here moving forward. So the first thing that we need to talk about is the big three struggles people have when fixing flipping homes, one is obvious, where are they finding the deal? And I’ll get into a little bit about that. Number two is where do they find the money? And I’ll dive in a little bit about that. And then number three is contractors, contractors are the bane of my existence. In my opinion, they’re actually one of the most difficult parts in this entire process. Even more difficult than finding a deal and finding money which I will explain to you how simple that actually can be. Alright, so first, let’s talk about the deal. This is what most people argue is the hardest part right now the economy is booming. most if not all markets are arguably impossible to find a deal. As a matter of fact, right now in Maricopa County here in Phoenix, we are quite literally at an all time low have active listings on the MLS. Since we started tracking listings on the MLS, it is crazy hard to get a deal. But I will tell you, there are three main functions for you to buy your first rehab deal and be able to flip it for a profit. And here’s why I know that to be true is because if there’s nothing on the MLS, when you put your rehab on the MLS, it will sell now, how to find the deal. And I’m not going to go into a deep dive here. There are many videos here in my YouTube channel, which I really encourage you to do a deep dive in all my videos all about marketing and strategy and conversion. There is a lot on here, but I’m going to give you a very quick condensed version of this. And then you can take the time to jump through a bunch more my YouTube channels. If you haven’t subscribed yet, please subscribe to the YouTube channel here. And if you’re liking what you’re hearing, make sure you hit the like button for me the YouTube Gods really like it and start to favor me anyways. So how do I find a deal? Well, there’s my favorite way to find a deal is direct marketing to sellers. That is the first way I like to do it. Now the other two are a little bit more, I would say easy, right? You have MLS and or realtors and then you have wholesalers now I’m a wholesaler myself, and so I do a lot of direct marketing to homeowners. And then I pick and choose my strategy. Do I want to wholesale this property? Or do I want to rehab flip it. So I will say if you can find good strategy again, watch my previous YouTube videos on how to market to homeowners and be consistent. That’s going to be your number one choice I always will tell you will find deeper discounts and bigger profits if you’re direct to the whole the homeowner. Now that being said, I bought hundreds of homes from wholesalers that they are collecting a fee. They’re collecting a wholesale fee, but they had to go spend the money to find the deal. They had to go and negotiate the deal. They spend all their time energy and effort and money finding that deal. So I’m okay paying that wholesale fee. I buy it directly from them. Usually I need to close within seven to 14 days, typically, and then I’m on my way and rehabbing the other would be on the MLS or having agents bring you pocket listings. Now I just mentioned to you that in my market Maricopa County in Phoenix, there is an all time low of listings and an all time low days on market. So the challenge really is supply and demand simple economics. So that is becoming a lot more challenging. However, realtors still are a great resource to bring you deal flow, because realtors will be marketing their own territory, they will be talking to homeowners themselves. And quite honestly, there’s times that listings or homes are not great listings for them, right there’s, you know, the the homeowners in too much of a rush, they need to be able to sell this thing fast. For whatever reason, maybe the condition of the home really is not in listing condition, the homeowner doesn’t have money to update that home to get it into listing condition. So realtors a lot of times can still be a great resource for you. And I would really encourage you to continue to reach out to those realtors and talk about that you’re looking to buy a rehab flip. Now I’m trying to define this because over the interweb so many people talk about flipping, and they’re talking about wholesaling. And in quite honestly, I have a podcast called the science of flipping, and it really encompasses all of the styles of flipping, which I would encompass as wholesaling, wholesaling, and rehab flipping. So again, this is about rehab flipping. Okay, so we went over MLS, we went over wholesalers, we went over direct to homeowner marketing. Now where can you find wholesalers? Well, a very similar place that I’m going to ask you to find most of your resources, which will be Facebook groups. And is a great place to network with other real estate investors in your area. And more often than not, you will find many wholesalers in those groups on The same to be said for Facebook, in Facebook, you will have local groups like the Phoenix reo, which I co host with Chris Iman. And then there’s, I don’t know, 15 other groups here I have a group, myself, called the science of flipping in in Facebook. And so there are several local groups that you can actually jump into and ask, Hey, who’s a wholesaler that I can buy a deal from I’m looking to rehab my first property, you will get a ton of engagement because all wholesalers are looking for great buyers. So it is a great resource again, as well as Facebook groups, you just want to join them, you want to engage in them, you want to ask, Hey, I’m looking to buy my first rehab property, who has properties for me that I can buy in the next 14 to 21 days, that is great resource to find those wholesalers, those groups will also be a great resource for the number two challenge that people find, which is money, I will tell you right now is a state of the economy. Money is everywhere, this should not be a challenge. The most prominent way people are financing the rehab flips is combination of hard money, which is a high interest rate, loan high relative to like three or 4%. Most hard money loans are anywhere from 10% to 18%. And then in combination, it’ll be either your personal money doesn’t have to be or you do some sort of private combination of hard money and private lending money, where they will bring in the downpayment and potentially the rehab funds. As I’ve said, hundreds and hundreds, if not 1000s of times on my podcast, the science of flipping. By the way, if you have not been listening to my podcast, on iTunes or on Stitcher or on Spotify, I drop daily podcast episodes. So the science of flipping over on iTunes or Spotify, please start listening to those as I drop daily episodes. Also, if you’re liking this, hit that like button, hit the subscribe button. So if you want to have money, hard money lending is asset based, they’re not going to run your credit. It’s asset base, they want to make sure you’re buying right they’ll usually fund anywhere from 80 to 90% of your purchase price,
which means you need anywhere from 10 to 20% down payment. This is where private money comes into play. Now there’s different things like I know a lot of people are saying, oh, why don’t have my own money. And you know, my friends and family aren’t rich? Well, you would be really shocked when you give someone an opportunity to be a part of a flip. And instead of giving them just a simple interest rate, you actually can give them some of the equity. I’ve structured, structured deals, that is a 7525 split that is a 5050 split. And they’re just bringing a small part of that equity portion. Like I said, anywhere from 10 to 20% of the downpayment, and whatever the rehab costs, that in combination can help you buy this flip without any money out of your pocket. That is the most simple way to do these deals. Now, where do you find hard money goes back to what I just said about the meetup groups and the Facebook groups, you’re going to find hard money lenders right in those same groups. And you just want to have a quick conversation. You want to let him know that this is your first deal. You don’t want to try to pound your chest and act like you’ve done more than you have. You want to obviously work with them. I would talk to several of them. I’ve worked with probably Six to eight of them here in Phoenix. For the majority, they’re all about the same terms. But if you start to gain some traction, you start to do well, they can start to be even better lenders to you better partners to you. Again, those groups meetup and Facebook can help you find wholesalers to buy your deal agents to buy your deal, I didn’t say that you can also find agents to buy or to buy a deal from as well as hard money lenders. And, you know, one, one part of this transaction I didn’t touch on yet, but briefly will is title companies, title companies, you can always ask around in those groups, who’s your favorite title company who’s your favorite escrow officer? That’s really important because sometimes, certain title companies and or escrow officers aren’t terribly investor friendly, you want to make sure that you do have a title company or an escrow company, or an escrow officer that is investor friendly. And lastly, what I believe to be the biggest challenge that I hope to help you with here is contractors, the best way to find contractors is again, to get in these groups and ask around, I only want to work with contractors that are have been vetted out, I don’t want to take a leap of faith, not on my first deal of whether it would be a good contractor or not. There are many contractors out there. But here’s the thing is a moment in time as I’m recording this video right before the holidays. There are there is so much work being done by these contractors. They’re incredibly busy. So what I would want to do is I want to jump in these groups, I want to ask, Hey, does anyone know a good general contractor who is licensed, make sure they are licensed, that would be willing to take on another flip. And I promise you people will jump in, they will tell you certain names, you need to vet them out. Okay, you need to make sure that you potentially go see what they’re currently working on, you may want to even see what they have done in completed projects. And then you may want to talk to other investors while you’re in these groups to see if anyone else has used that contractor. I can’t tell you how many times and I can think of two that I trusted the contractor I trusted only one other person about the reference of said contractor and I got burnt, it was not the right move. I only asked one other person, that person said yes in both scenarios, by the way. And then I got burned because that contractor really was not good. Now whether they were good or not, that’s a whole nother video, they were actually going through one was going through personal stuff, and the other just fell off the face of Earth. Anyways, I digress. When you’ve done as many deals as I have, I have plenty of stories. But this is why I’m shooting this video for you to go out and get your first flip and make massive profits in a big check. So that you can create the lifestyle that you always want. And so contractors, once you find the right one, you vetted them out you you know asked other individuals, if they use them, you want to make sure they give you a line item bid. And here’s the deal, you want to make sure you put them on a payment plan for their work that you can have at least three to four payments for the rehab itself, and they don’t get their last payment until you walk the property in line item everything that isn’t correct. If there is stuff that is not correct, which always happens. And then they get their last payment. Now if you follow this, whether you start doing direct marketing to sellers, whether you work with agents, whether you buy homes from the MLS or you buy them from wholesalers, that’s how you’re going to get your deals, the money is everywhere hard money, lenders will lend anywhere from 80 to 90% of the asset itself, you do not need to run your credit and you combine that with some private money that is absolutely everywhere. You could also even leverage credit cards and other things of that nature. I don’t necessarily suggest that but you can absolutely pull cash out of your credit cards, you know to use for these projects. And then you take that in you find a contractor, they’re going to be in these meetup groups, they’re going to be in the Facebook groups. Make sure you vet them make sure you’ve talked to two or three other individuals that have used them. So you make sure you’re getting the right person and you go full tilt, I would tell you this my last suggestion about your first fix and flip, make sure it is not a big project. Make sure you’re not trying to add square footage and you’re taking something on because you see the dollar signs of this big profitable deal. Make sure you’re doing something that can stay within about 30 days of you starting the project to ending the project and getting it listed. And if you stick to that, I will tell you you have a very good chance of collecting those massive checks Now like I said, smash the like button hit the subscribe button. Also, if you are not listening to my podcast over on iTunes or Spotify please do is called the science of flipping I drop daily podcasts over there. I hope this finds you guys well and I’ll see you guys on the next video. Peace

You May Also Like…