Discover if flipping properties is for you

I’ve been receiving a few messages about flipping in the last days.

How you do it? How can I start? Should I get an investor? Should I do it myself? Should I use a general contractor? Many subbies?

Etc.

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It’s impossible to answer those cases without proper details.

I normally take one hour of back and forth with any of the people I coach to get a good understanding of the situation, potential, points to improve, etc.

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But, I’m going to tell you some basics principles.

1. Flipping is not for you, if you’re not willing to handle problems.

Just to be clear, a renovation, especially a complete one, is a jodida cascade of problems.

Trust me. In a project, those issues will come out them all, none, or several.

But generally, several problems arise, 99% sure.

They could be with the materials, the subbies, with the permits, the neighbours, some rain, unexpected estate in the structure, etc.

OK, I mostly do flipping in very old buildings… but I’ve found lots of issues in apartments just 30 years-old.

You’ll have to learn to deal with these issues and navigate tense, very tense situations.

If you don’t feel you have the stomach… then, you can stop reading here.

2. Flipping is not for you if you don’t accept deviations… sometimes, very big ones.

I thought a project was going to cost me just 750k€… the latest forecast is at almost 1.05 million…

I thought that a project we just closed was going to give me 30k€ net profit… reality… 5.7k€… IRR of less than 7%... a disaster for the risk, time and effort invested.

Accept you’ll have these deviations, planned for them.

You’ll appreciate it.

In some projects, a) you make money, in others, b) very little money, in others, c) you lose money. The business is in having lots of a and b.

3. Flipping is not for you if you don’t have time.

I learned this the hard way… by losing money and/or opportunities.

If you don’t have time, you’ll pay more money.

You’ll have to compensate for this in your strategy… and put your time where you add more value.

You can’t do everything. Accept it. Now decide where you time and money will go.

By the way… if you like Badajoz, Spain, as an option for investment… you know that I can do everything for you. Everything. Find target, buy it, renovate it, sell it or rent it and manage it for you.

I’m efficient but I cost money.

4. Flipping is not for you if you don’t know how or you don’t want to listen.

Almost 20 years delivering multi-billion infrastructure. 12 years building houses. 4 years doing flipping… and no, I don’t know everything.

So listen.

Listen and learn.

Listen to the electrician.

The plumber.

The bricklayer.

The architect.

The surveyor.

The lawyer.

The agent.

The clients.

The interior designer.

The subbies.

The people selling you materials.

In general, listen and you’ll learn not to screw up.

5. Flipping is not for you if you’ve never done one before

Maybe you’re lucky and you do money in the first one.

That’s great and good for you.

But reality is that it’s better if you get into a joint operation or get advised by a professional… and it doesn’t need to be me… find someone you trust.

And whatever option you choose, pay close attention to learning.

Accept that you’re delegating with the aim of absorbing other people's knowledge and not to evade your responsibility.

In short, if you think you can tackle your first flip, go ahead.

Go for it.

Buy and renovate with the aim of adding value to a property forgotten by society.

That’s an amazing feeling.

Now… if you want to know more about flipping, I have a course. It costs $129. The name is The 33 most common questions about flipping.

There is a lot of value there.

You’ll receive it free if you join my community.

In there, I talk a lot… a lot more about flipping and other business opportunities in real estate.

June 1 will be the last day. Then, it’ll be close to new members until… I don’t know, but it’ll be a while.

To join, you'll have to subscribe first here: Subscribe