Getting Started with Flipping Houses
Hi my name is Austin and I'm 19 years old and would love to do house flipping for a living my dad and I did one house a few years ago. we learned a lot about rehabbing (hes had a construction business for 25 years) but it was on and off part time type of deal but he and i both want to get into this full time. We would be in the Maryland and DC market so I would just like any advice that I could get to seriously make a business out of this for myself and make this a full time career for me. I would love to do this then have a business doing it as well and keep passing it down in the family some day.
| LUIS COMMENTS... |
Austin, thanks for contacting me and sorry for the late reply.
Making a full time business out of this is tough but it is very much doable with the right systems, people and tools in place all of which take time to put together and a plan. Since you are young and already have some experience sounds like you got a good start. The biggest challenge when making this a full time thing is being able to deal with the super variable income you will receive. Like any other kind of self employment you will only get paid out of what you make happen. So in this type of business you could do a deal and make good money in one month and then not see income again in 3 months. So you have to be very diligent with your personal finances. The key is to create a pipeline where you are always looking for deals and have a deal somewhere in the pipeline.
The hardest part of this business is finding the deal, period. Everything else can be figured out. But finding that house at a good enough price
is the biggest challenge. I used to buy foreclosures from the bank but that source of deals has dried up here in Atlanta. So the only avenue left is to find motivated home owners that for some reason have to sell and are willing to sell at a discount. There are numerous ways to market to that segment of homeowners and you can find plenty of information on that all over the net.
Another very important step you need to take is to start meeting and networking with investors in your area. This is invaluable and you will learn a lot by seeing what others are doing, what their deals are like and you will also find out about available deals that way.
There are numerous more things you need to plan on everything from financing your deals, finding contractors, getting best price on materials, project management, learning how to sell a house and the list goes on....
That is why I have written everything I have on this site. If you go through all my flipping deals you will get a better perspective on everything that is required. Don't try to do too much at a time. Take it one step at a time.
Finally, everything starts with education. Both by hitting the books and talking with other investors, taking classes and generally becoming a student of the sport. Nothing in this business will hurt your more than ignorance. Wether it be ignorance of the law, taxes, the market, handling money, budgeting, etc. What you don't know will hurt you. So educate yourself first, up to a point where you feel comfortable to do your first deal. Education never stops but you also don't want to fall into the trap that you are waiting to learn a bit more before you do your first deal and then never actually do the deal. Because after all a lot of your education will come from taking ACTION.
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