In this YouTube video, seasoned broker and investor Joe Homs (over 40 years experience and hundreds of flips) shares three practical strategies to minimize risk when purchasing and flipping homes. He first emphasizes thorough due diligence and networking with local investors to gather reliable project information. Second, he advises starting with smaller flip projects, noting that they involve the same processes as larger ones but with reduced financial exposure, allowing new investors to learn and still achieve a target profit of at least 10% of after‑repair value. Third, he recommends having multiple exit strategies—beyond the standard “sell after rehab” plan—such as renting, Airbnb conversion, or other creative dispositions, to ensure flexibility if the primary plan falters. Throughout, Joe stresses immersion in the local real‑estate community, continuous learning, and offers additional resources like a walkthrough and scope‑of‑work video, inviting viewers to reach out for mentorship.
Chapters
Today, I'm going over 3 ways to greatly reduce your risk when buying a flip. Coming up next. There are a lot of moving parts to make buying, fixing, and flipping successful. To eliminate as much risk as possible, I strongly advise that you follow these 3 tips. Really quick, before we start, I want to introduce myself to all the new subscribers. I'm Joe Homs. I have over 40 years of experience as a broker, investor, and mentor. I have flipped hundreds of homes in an extremely competitive market. I made this channel so I can connect with you, the new and experienced investor, those who want to create the life they've always wanted through real estate. Number 1, perform your due diligence and connect with local investors. These 2 things are going to give you the best information on your project, whether it be a small project or a large project. Look and see what other people are doing. Go to meetups. Talk to people that are actually doing it and figure it out before you start the process. Number 2, why not start small? It's not going to be any different than a big project other than money and time. and effort, but you're probably still going to make— you know, my goal is to make at least 10% of the after-repair value as a profit. It's not going to be any different. You're just talking about a smaller number versus a bigger number. But small projects are a great way to start and learn. Number 3, make sure that you have multiple exit strategies. I'm not telling you to buy something with the exit strategy in mind that, hey, if this doesn't work out, I'm just going to keep it and rent it out. I honestly, I don't believe in that type of exit strategy, but there could be other multiple exit strategies. Maybe you're buying the house and instead of just rehabbing it just to basically flip it, maybe you're going to make it into an Airbnb. So you're going to put more money into it and literally just sell that as an Airbnb business. So there's multiple strategies out there. You just need to figure out what's the best one for you. Conduct as much due diligence as possible and network with anybody and everybody in the area. Look at what some of the top investors are doing and how they're going about flipping their homes. The more you immerse yourself in the industry, the more your mindset will expand and the more you will know. You don't have to go it alone. If you love flipping and want more of these videos, Then click on this video right here. I show you how to do a walkthrough and create a scope of work so that you and your contractor are on the same page. Don't forget to reach out. I'm always here to help.
