5 SIMPLE TIPS FOR GETTING STARTED FLIPPING HOUSES DANNY JOHNSON
Too many people give up after only looking at a
never include holding, closing, and other costs in
handful of properties and incorrectly assuming
their calculations of what the house flippers make
that great deals just don't exist. Either the ones
on the show.
they've heard about were made up, or the people
were just lucky.
It's far too easy to become
discouraged.
The big takeaway here is to stick to the formula (try
to get it for less if possible) and keep plugging
along until you find one of those deals that can be
You just have to keep going.
Keep looking at
bought for a price that fits the formula.
properties and don't give up until you find the right
deal. Don't ever force the matter and manipulate
2. Focus on What Others Aren't
facts to justify buying a bad deal just to do one.
This happens all the time. These people find out
really fast how big of a mistake that could turn out
Want to avoid the competition?
Do what other
investors are not.
to be.
The typical house flipper wants to buy houses at
70% of market value, less the cost of repairs to
make the house desirable to an end buyer. Many
investors get into trouble when they assume that
the 30% is going to be pure profit.
It can be
tempting to think that you would be very happy
with only making $15,000 on a house that will sell
for $100,000 and needs $10,000 is repairs and
updating. Instead of paying $60,000 or less, like
you should, you end up paying $75,000 (because
you think you will make $15,000 after you put
It's crazy how much competition I've faced for the
$10,000 into it).
last several years for the bank-owned houses. I
simply refuse to chase after those deals anymore
Well, after you find out that the HVAC system is
because there are far too many people offering far
on its last leg, the roof needs replacing, your
too much for them. There are deals to be had, but
eventual buyers need $4,000 in closing cost
I would have to work very hard to get them.
assistance and the real estate agents involved in
the final sale want the typical 6% commission,
Instead of doing what the majority of the investors
you've lost a lot of money.
are doing, I'm marketing directly to homeowners.
I'm trying to find the motivated sellers. There is still
The math you were using was 'house flipping
competition, but it is not nearly as bad as for the
reality TV show' math. I'm not sure why they
listed properties.