This content was created by Joe Homs 949-625-4533. This content was uploaded by Joe Homs 949-625-4533. This is a YouTube video titled "How To Analyze a Flip In 2023" (published 2023-02-09) featuring Joe Homs 949-625-4533 presenting a how-to tutorial on analyzing house flips. Joe (a broker/mentor/investor with 40+ years of experience) walks through key steps: finding the ARV (after repair value) using agents and tools like Pelago and PropStream; estimating rehab costs (he uses ~10% of ARV as a guideline but inspects properties in person); spotting hidden repairs (foundation issues, leaks, mold, attic problems, pests); accounting for closing costs and building relationships with escrow/partners; and setting profit targets (he prefers ~10% of ARV, with notes for beginners). The video is instructional/promotional (encourages subscribing, booking one-on-one help) and aimed at prospective house flippers.
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Are you ready to take the leap into the world of house flipping? With my guide on how to analyze a potential property, you'll learn the ins and outs about how to identify the best deal. From finding hidden repair needs to comparing comparable properties, I'll give you the tools that you need to make an informed and profitable investment. Don't miss out on your chance to make a fortune flipping houses. Join me now and learn how to analyze a house flip like a pro. Hi, I'm Joe Homs, and I have over 40 years of experience as a broker, mentor, and investor. And I want you to subscribe so that you never miss a video. Step number 1, find the ARV. Probably the most important step because you want to make sure that you know how much you're going to sell this property for at the end of the day, after repair value. So there's several ways to do that. You, if you have the ability to contact a real estate agent that knows what they're doing, they could send you some ARVs. You can do that on websites. Pelago is a great one I would recommend to you. Literally just put the address on there and it'll determine what the ARV is. So anyways, using website tools, other real estate agents, or other investors to find out what they think the ARV might be Another great source is PropStream. So if you're not using PropStream to get leads and figure out what the ARV is— and what I like about PropStream, it's all through the 50 states. So if you're in California and you're looking at flipping something in Kansas, and they're going to be able to tell you what the ARV is for that property that you're looking for. Number 2, calculating repairs. So you can use formulas for this, and I use 10% of the ARV for the repair value or the rehab. And honestly, that number works for me to get me to the point where if the rest of my numbers work during my calculations and I can see that I'm going to make a substantial profit on this property, that'll get me up and get me over there to that property to look at it. But at the end of the day, you always, always want to look at a property to see what needs to be rehabbed. That 10% is going to cover basically, you know, new windows, new flooring, possibly even a new kitchen, new bathrooms, but it's not going to cover a new roof. It's not going to cover repiping the entire place or putting new electrical wires in the entire place. It's not going to cover things like that. So that's why you need to go out there, look at that, and then determine whether you need to raise that or lower it. Number 3, what are some of the hidden repairs that you have to look out for? Foundation issues, and that really depends on how bad of a foundation issue is. You can literally— and I've walked into places where I'm kind of walking sideways, leaned over, Because the cement has gotten to the point where it's leaning to the left. So those, sometimes you can find them while walking through there. Many times when I'm going to buy a place, if it has carpeting, I'll pull back the carpeting once I have it in escrow, once I'm doing my due diligence. Don't do anything before that. But when I'm doing my due diligence, I'll pull back the carpet to make sure that there's no Foundation issues. Anything behind a wall, so a water leak or something, you're pretty much going to be able to see that because it's going to start developing mold or things like that that you can see. In fact, I went to do a walkthrough the other day on a property, and while we were there, we see that there's water in the kitchen, and it's like right at our feet. And I'm thinking like, This guy's got an active leak. And sure enough, we asked him and he says, yeah, I'm fighting with the insurance company to take care of this. And I'm thinking, you have an active leak, why don't you take care of it? Because it's going to cause more problems for you if you don't take care of it. So he started to have mold going up the wall in the kitchen. You could see it. And then we're stepping in water as we're going through there. So sometimes you can see these things, sometimes they're hidden. Going up in the attic is a great thing that maybe you can see there's rat droppings up there. And you have to remember, at the end of the day, a home inspector is going to come and do all this as well. So if he goes up there and he sees rat droppings, he's going to call that out. So before you put it on back on the market, take all the insulation out, put new insulation back in so that the home inspector doesn't see any of that stuff once you get to the point where you're listing the property. So there's some hidden areas and dangers that you have to be careful for, and those are just a few of them that I just mentioned. Number 4, closing costs. Make sure you know what your closing costs are going to be. I try to establish relationships with everybody that I work with, including my escrow company, and my escrow company, they give me a discount because I give them a lot of properties. On top of giving them a lot of property, since I'm a real estate agent, I also give them my regular clients. My regular clients get charged their normal fees, but when I do one of my deals, they discount their fees for me. Okay, so I try to establish relationships with all these people. It's just a phone call away. When somebody picks up the phone, I want to hear, hey Joe, How can we help you today? Instead of, who are you? What property are you calling about? Things like that. So establish relationships with everybody. Escrow company is perfect. They can give you an estimated cost of what everything's going to cost right out front on this, on a particular property. So establish that relationship with that escrow officer. Number 5, profits. And really profits is up to the individual. I personally like to see at least 10% of the after repair value. So if I'm buying something for $700,000, I better be making at the end of the day $70,000 on this property. If not, it's not really that interesting to me. But that doesn't mean that if you're just starting out and you're happy making $30,000 on that deal, then fine, then do the deal. Okay, so it really kind of depends on where you are in the flip process. So are you brand new? Are you excited? You're, you're learning the process, you're learning what to do here and there, and then you only make $30,000? Awesome, that's great. Now go, go buy 10 more, okay, and, and make a substantial amount more money. But as you're getting to the level where you're flipping at least 10 properties or more a year, then you start to be a little bit more picky, and then you know how much work it's involved, so then you want to make at least $10,000 10% or more on a particular property. Remember, flipping a house can be a profitable venture, but it's important to do your due diligence and carefully analyze a potential property before making an investment. Be sure to subscribe to the channel for more tips on flipping houses, or click on this video right here. Book some time with me for one-on-one help, and as always, feel free to reach out anytime. I'm always here to help.
