How to Flip Houses – Five Steps to Success


http://www.biggerpockets.com/flippingbook Have you always wanted to flip houses but don’t know how to get started? Let this video be your introduction into the world of house flipping by sharing the 5 steps you need to follow in order to find success as a house flipper.

Transcription:

Hey this is Brandon with Biggerpockets.com and today I’m going to show you how you can flip houses in 5 easy steps for fun and for profit.
Alright! So you want to start flipping houses.
I don’t blame you.
Flipping houses can be fun, exciting, and inspirational, and very dangerous if you don’t do it right. I really don’t want you to crash and burn with your real estate flipping. So let me show you the five steps that I follow when I flip a house.
Step # 1: Plan
What kind of house are you going to flip? Where are you going flip at? And, how are you exactly going to complete it?
These are all really important questions that you need to answer for yourself before you start house shopping.
You need to determine where people in your community are buying houses and start there. Also, what kind of properties are people buying? Three bedrooms? Big garage? Basement?
Until you answer these questions and formulate a plan don’t jump into a house flip.
Step # 2: Get your Financing Figured out
How are you going to pay for this flip?
Because, most bands don’t like funding flips, so, if you don’t have the cash you may need to get creative.
One of the common methods used to fund a flip is the hard money lender. And if you plan on using the hard money lender, you better start looking for them right now and talking with them, building that relationship.
If you don’t know any hard lenders in your area, you can find them for free in your state by visiting biggerpockets hard money lender directory by clicking this link right here or you could watch a video I made on how to find a hard money lender by clicking this link right here.
Alright let’s move on to step # 3: Buy smart
When it comes the time to buy a property not any old property is going to cut it. You’ve got to buy smart. An easy tool to use is called the 70 percent rule. And basically, it goes like this:
First, figure out how much the house will actually sell for once it all fixed up. You might want to talk to a realtor for this. Multiply the number by 70 percent. So, track out your repairs, and badabing badaboom you got an estimate on the price you can pay.
So take some time and actually do the numbers and make sure it works. And be conservative in your estimates. If you think it would sell between 140 and 160, go with 130 and then double your repair cost and then double your timeline. Trust me.
If you want real comfortable and knowing exactly how much it cost to fix up a property then make sure you pick up a copy of biggerpockets presents the book on estimated rehab cost, which comes free when you buy the bigger pockets presents the book on flipping houses — also an amazing book. If you want a copy click on the little book icon right here.
Alright moving on, Step # 4: It’s time to step remodeling the home
If you plan to do all the work yourself (and I don’t recommend it) you better get started. But instead you probably are going to higher some contractors.
Get to really make sure that the contracts are licensed, bonded, and insured. And you got to manage your flip like a business not a hobby. So have rules , systems, budget, and schedules to make sure everything runs smoothly.
Finally Step #5: Sell that flip
Make sure you price your house so quickly, in other words don’t be greedy. You want that house to sell as fast as possible.
You may want to also consider staging your house. Which means decorating them with flowers, furniture, painting, rugs, flowers, whatever you can to make it look “oh so cute.”
So hopefully, if you had a great plan, with conservative with your numbers, manage your flip effectively and sold it quickly. You now made a nice side-able profit that you can roll into the next flip.
Now if you guys enjoy this video, I really need you to help me out and do three things.
Number 1: click the thumbs up sign here on YouTube to tell the” Google Gods” that you liked it. Subscribe to the channel by clicking the link right here. Finally come send me a colleague request over the bigger pockets.com


20 Responses to How to Flip Houses – Five Steps to Success

  1. MegaMilez

    I just want to learn how you teleport everywhere.

  2. Chris Barreira

    if it could sell for 140-160, i would use 140 as the conservative number not 150. thats just me

  3. Austin Brewster
  4. Maylin Ravelo

    Can you speak,I litter slowly please.

  5. Will Scott

    YOu should do most of the work yourself.

  6. Japheth Lau

    Thanks for the gold nugget of information on flipping properties.

  7. RatedASMR

    I plan to be a real estate agent that flips houses for clients and possibly getting a show on HGTV

  8. Raymond Dolen

    hichcock 45

  9. Egor Skavysh

    Go to Stodoys page if you want to learn about it.

  10. Patrick Zanders

    the TRUE secret to flipping houses is to have access to funds. Tom Lowry has been my funding partner for years. Amazing performance when it comes to acquiring rehab funding to 100% of the rehab needed. Call him directly at 863-808-0292

  11. Cristian Rivera

    what kind of licenses in order for this to be legal? please let me know i really want to start flipping houses (in the construction business at the moment) but i need the proper steps to make this actually happen.

  12. John Jacobs

    Honey badger dont give a shit

  13. Miguel Sarquis

    Hello Brandon, the links didn't open ,let me know please,thanks

  14. odessa

    But how do you answer these questions in part one? How do you do this research?

  15. kevin aguilar

    how did you start flipping houses?

  16. BigMonkeyGrip

    Anyone? …Selling a Summer Home in Michigan. Perspective buyers made an offer. I came down quite a bit in price, paid to have survey, I paid to have septic inspected, etc. Buyers bank inspectors came in and said the fuse box is to close to the water heater and has to be moved before they will finance. It is "Grandfathered in" due to old codes, so it can stay where it is while I own it. I feel coming down almost $10,000 off the asking price and by paying all the above mentioned, it should be up to the buyers to pay to have fuse box moved. If I pay, I would certainly increase price to recoup. Any views of what's right in this case? Anyone?

  17. Andy Wilson

    As an electrician, I loathe flippers. In fact, I don't think I've ever met one I've liked. But on the business side of things, flipping is definitely an avenue I'd like to go down. It's definitely intimidating though. Thanks for the help 👍🏻

  18. oliver geddes

    sexy I like it

  19. Taleen Mencia

    Great video!!

  20. Atilla Serdar

    nice I have questions