Your First Flip! 3 Things To Consider

In today's video, we're going to go over 3 things that you need to consider on your first flip. I meet investors all the time that are eagerly dying to start on their first flip, but there are some key elements that you need to consider before you just dive in. Keep these in mind to minimize your chance of losing money on your first flip. If you're new here, I want to welcome you. I'm Joe Homs. I have over 40 years of experience flipping homes in a competitive market. Learn from my mistakes and my successes by subscribing to this channel. Let's talk about number 1. Really, the most important one I would say is lack of knowledge, and that's what basically freezes everybody in place. They're not willing to move forward when they do get a deal that they find or it's presented to them and it's an awesome deal, but they're kind of afraid to move forward. That's because of the lack of knowledge and the lack of figuring out what the after repair value is, figuring out how much it's going to cost for the rehab, figuring out how much it's going to cost you to sell the property at the end of the day. Those are really the 3 basic components in that knowledge equation. in flipping houses. If you can tackle all 3 of those successfully, you will have a successful flip at the end of the day. Number 2 is timeline. So you have to have all your systems in place. You can't just say, I want to flip a property tomorrow, get presented with a deal, you take it on, and then you have no idea what's going on. You don't have a contractor in place. You don't have an agent if you're not an agent at the end of the day to sell the property for you. You have no idea what the color scheme of anything that's going on inside the house or what you even need to do inside the house. Do you actually need to rehab the kitchen, bathrooms? Can you just throw paint in there? Probably not. So you have to have all this in place ready to go because In flipping, time is money. You want to go in and out as quick as possible. The quicker the better. So if you have all the systems and all the teams ready to go, you'll be in a good position to make money on your flip. The third thing to consider, and this especially happens in a first-time flipper situation, is design. I'm going in and I want to put that gold faucet in the vanity. Okay. Because why? Because that's what I like. You know, I would like to move in a house and has gold fixtures all over the place. I go to the kitchen and I'm going to put this fancy faucet in there as well that cost me $1,000. Okay. So you have to know your market. If you're dealing at the lower end of the market, then believe me, a Home Depot faucet in the kitchen and in bathrooms, is sufficient. If you're dealing in the higher end, and I'm talking about $5 million and above, that's a different story. So you have to make sure your design meets the clientele at the end of the day. Okay? So the lower end, you can pretty much do Home Depot, Lowe's. As you get higher in that range, you go into the million-dollar range, you're going to be putting custom tile, Fixtures, things like that. And you get into that ultra luxury range, which one of my agents actually does. He buys properties for $6 million, rehabs them, and sells them for $15 million. So you can imagine if a $15 million buyer walks into one of his listings, they're going to look at the tile and say, wow, that's beautiful tile. Looks like it was imported from Italy. I didn't see it at Home Depot. Because if you get that— I saw that at Home Depot— that was the wrong tile to put into place. Okay, so make sure you design your flip to meet your market. When you buy right and do a good job on the rehab, stick to your budget and put that end product on the market, you should pretty much make a profit every time. If you're new to flipping, click on this video right here. I show you 5 ways to ensure that you will make a profit. In the meantime, feel free to reach out to me anytime. I'm here to help.