In this instructional YouTube video, seasoned Southern California house flipper Joe Homs (40+ years experience as broker, mentor, and investor) warns new flippers about the most common pre‑renovation mistakes that can erode profits. He outlines four critical due‑diligence steps: (1) thoroughly evaluate the neighborhood—consider proximity to railroads, busy streets, airports, and look for other active flippers as a positive sign; (2) inspect the foundation for visible issues or undisclosed problems; (3) verify that all structures (e.g., garages, outbuildings) have proper permits; and (4) investigate why the seller is motivated to sell, even in a disclosure‑heavy state like California. He stresses that money is made at the purchase stage, urging viewers to conduct on‑site research rather than rely solely on online listings. Joe offers his services for property analysis and encourages viewers to like, subscribe, and book a consultation.
So you're ready to start flipping. You've got a property you've had your eye on and you're going to make an offer. While the idea of flipping and selling that perfect property for profit may seem appealing, there are many pitfalls that inexperienced flippers sometimes fall into. Today's going to reveal the top mistakes new house flippers make before they even start their renovation. No more lost profits or endless headaches. Are you ready to learn the keys to picking the perfect property?
Hi, my name is Joe Homs and I flip Hundreds of homes here in Southern California. I have over 40 years of experience. I've been a broker, mentor, and investor, and I want you to like, subscribe, and share this content with your friends.
You don't know anything about the neighborhood. One of the most important things is to go look at the property. Is it on the right side of the railroad tracks or the wrong side of the railroad tracks? Is it on a busy street? Is there a train running behind the house? Are you near an airport where the landing path is right under your house? There's lots of things that can go wrong. You need to go out there and evaluate that neighborhood and take a look. And most of the time right now, you'll look at the neighborhood, you'll find this person and this person is actually flipping in the same neighborhood, that's a good indication you're in the right area. You didn't check the foundation? Why didn't you check the foundation? I personally don't do a lot of foundation issues. I happened to run into another flipper the other day and he's the opposite. He does a lot of foundation issues, but that's just an additional headache to me, obviously not to him. But please make sure that you walk the property, you check the foundation issue. If you're walking a little to the left, you know that there's an issue, or it actually may be disclosed by the seller, by the wholesaler, or definitely, hopefully, by the listing agent. Do you like these type of videos? Do me a favor and hit that like button. You didn't check that everything was permitted. I was actually at a place today. We were walking through, we see the primary house, we walked through that, and then there's an outbuilding. I thought at first it was a garage that was converted, and that's what it looked like to me. So I don't know that that property is permitted because the garage is actually next to that. So that's something that you're going to need to check. It did not look like it was permitted to me. It is— it was literally 4 walls, some windows, And that was it. That's all that was inside. So I can't imagine that that type of structure would have been permitted at all. So make sure that you check your permits. You don't know why the seller is selling. What are you missing? What is the seller not telling you? California is a total disclosure state, but we're all human, I guess, and some humans have decided to deceive others. So they may not be telling you everything that's going on on this property. So you have to do your due diligence. You have to be careful. You have to check everything out. So make sure you do all that stuff before you pull the trigger. There's an age-old saying in real estate that still rings true. You make your money when you buy. This is very true when you're flipping as well. You need to do your research. It's easy to sit at home or in your office and pick out a property online like you're shopping on Amazon, but don't forget to do your research before deciding to make that big investment. If you need help analyzing a property, book some time with me and I'll show you exactly what to look for. Or click on this video right here. As always, feel free to reach out anytime. I'm always here to help. Give me one.
