Joe Homs walks through scaling a house-flipping operation from side hustle to business. Set up an S-corporation, build a wholesale crew that cold-calls daily for deals, and hire a real-estate agent, CPA, and contractor. Treat it like a business: budget for marketing, legal, and accounting.
Chapters
In today's video, I'm going to show you how to start a business flipping houses. Coming up next. Flipping houses can be very profitable, but if you want to go from flipping once a year to creating a business, you'll have to take some things into consideration. Let's talk about it. My name is Joe Homs. I've not only flipped hundreds of houses in Southern California, I've also been a broker, investor, and mentor for over 40 years. I want you to be successful. That's why I made this channel. But you need to take action. So start by subscribing, liking, and sharing with your friends. Here's what you'll need to create an actual business flipping houses. Number 1, you're going to need a business structure. You just can't— I mean, I guess you can, but you're going to get in trouble real quickly with the IRS if you start flipping houses in your own name or even an LLC. You want to use an S corp. to flip houses. That's what the IRS is looking for and that's what you need to do. That's just part of the process of flipping homes. Number 2, you're going to need consistent lead generation. And if you get up to the levels of flipping 75 to 100 homes or more a year, you definitely need to rely on maybe your own wholesale crew, your wholesale team, Not too much on others because you get one-offs here and there and that's really not enough to feed your pipeline. So you have to have a crew of wholesalers that are cold calling for you on a daily basis and getting leads and putting those properties under contract. You're also going to need a reliable team. Team members can be an experienced investor-type real estate agent. You're going to need a CPA. You're going to need a contractor. You're going to need your wholesale team. There's a whole crew of people that you're going to need to assist you with this endeavor so that you don't go crazy at the end of the day. At the end of the day, a house flipping business is just that, a business. That means you're going to need to put time and energy into the same expense expenses you would have in any industry. This includes networking with others, marketing your business to get that word out, and paying for expenses like legal and accounting. As your business grows, you may even choose to outsource much of the do-it-yourself work. If you're new to flipping and want to know how to find the best areas to flip, don't miss this video right here. If you're looking for more one-on-one help, feel free to schedule a call or a meeting with me. You can find all my info in the description box. As always, I'm always here to help.
