There are plenty of different topics to cover when seeking real estate investing advice. Whether it’s marketing, sourcing, working with contractors—there is always something to learn about the various elements that make up a successful project.
However, in this Flip Tips: Advice Straight From the Experts, we asked the pro flippers what they would say is the best advice they have up their sleeves overall.
Check out their answers on the most important things to keep in mind when real estate investing.
Flip Tips: What are the best house flipping tips overall?
“Know the market, run your numbers correctly, and manage your contractors well.”
-Albert Nyabwa, Texas, 35 flips completed, 4 years in the industry
“I would say if you’re starting out, try to watch your numbers closely and pay contractors slowly. Make sure they complete the tasks before paying. Be more conservative, then once you get more experience under your belt, you can take a bit more risk. There will be some projects that you will be in the red, but just make sure you are in the clear at the end of the year.”
-Jimmy Tang, Washington, 50 flips completed, 7 years in the industry
“Make sure you capitalized enough to buy renovations and hold for a real estate cycle—April through October.”
-Daniel Carr, flips in Georgia, Alabama, and Florida, over 200 flips completed, 19 years in the industry
“Don’t overpay when buying a property. Don’t fall in love with the property. It’s an investment not an opportunity for self-actualization. Expect (some) things to go wrong. An IRR doesn’t buy you anything, remember they pay attention to absolute return in money.”
-Rainer Richter, Florida, 80 flips completed, 5 years in the industry
“Take action. There is nothing special about what we do, it’s just that we are actually doing it. Take action.”
-Luke Weber, Nevada, 500+ flips completed, 18 years in the industry
“Have enough cash to get yourself through the repairs! This business is so cash intensive, that you have to always have more cash on hand than you think you will ever need. Find good financing, and someone to finance your operating side of the business, not just the home purchase.”
-Mandy Clark, Nevada, 27 flips completed, 3 years in the industry
“Before you invest in your own property, try to find someone that will let you tag along on their project. Ask as many questions along the way as you can and compensate them accordingly depending on your relationship.”
-Steve Stimson, Texas, 60 flips completed, 4 years in the industry
Learning the different pieces of advice from each expert flipper demonstrates their various experiences, telling a piece of their story with each instruction. This also helps novice flippers consider what they should really focus on when learning the ropes of house flipping, and helps experienced flippers where they can improve.
A popular theme around many of their strategies revolves around managing money and dealing with financing. At LendingHome, financing is our bread and butter and the LendingHome Blog offers many helpful articles on the topic.
Come back next month for a new edition of Flip Tips and visit our other series topics like our Flip Tips: Special about the coronavirus and the top things to consider when buying an investment property.
Want to get started on your own real estate investments today? Learn more at LendingHome!
Disclaimer: The above is provided for informational purposes only and should not be considered tax, savings, financial, or legal advice.. All views and opinions expressed in this post belong to the individuals referenced. NMLS ID: 1125207 Terms, Privacy, & Disclosures. Copyright LendingHome Corporation 2020.