HouseFlippingHQ.com published an article that contains some really insightful tips from the pros. The author spoke to 20 seasoned house flippers and asked them each the same three questions:
- What is your number one piece of advice for someone who is looking to get into flipping or wholesaling houses?
- What is the most important mindset shift that needs to happen for someone to become a successful house flipper or wholesaler?
- What is the one thing you wish you had known about house flipping or wholesaling when you first started?
We found the article to be so helpful that we wanted to share some of it with you and provide our own feedback too.
When asked what was the number one piece of advice they would give investors, the answers varied across the board. Many said that it’s important to be educated and to do the research, others said that networking is viable along with professional mentorships. The piece of advice our team thought was spot on was given by Nick Manfredi. He said, “Joint venture with someone who knows the business: it decreases risk.” At ZINC, we agree with this idea which is why we created a joint venture program some time ago. This program is available to our most successful investors as it allows them to invest in more properties while lowering their overall financial risk.
This question received really great answers. Some pros said that it’s important to make house flipping a full-time effort and others said that people must think of themselves as serious real estate investors. We strongly agree with the latter. If you come into the industry with the mentality that this is a “hobby” or that there isn’t much at risk, you have it all wrong. You must take on an investor mindset and serious investors do their research, are extremely diligent with their budgets, and seek out partnerships that lead to long-term growth.
As the saying goes, “hindsight is 20-20”. Responses to this question included: having better strategies to vet expenses related to contractors and construction, knowing how to market properties, and having a clear schedule and/or timeline to stick to. However, the response we thought was exceptional was given by Ginger Mancias who said, “I wish I would have partnered with other people sooner.” She also said, “Surround yourself with a strong team and seek mentors and advisors.” The rehab industry is ever evolving because it is part of the U.S. real estate eco-system. This is why the most experienced investors often turn to partnerships. Whether they align themselves with real estate agents, contractors, or reputable private money lenders, they know that when they work as a team, they can accomplish a great deal more.