Follow These Steps BEFORE You Start Flipping Houses in 2024
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- Опубликовано: 22 май 2024
- Flipping houses can make you a TON of money-arguably more money than most other real estate investments. You can make a 40% to 50% return in just six months, but you can also lose a LOT more than that by buying the wrong deal, doing the wrong fix and flip, or looking at the wrong numbers. And if you want to start house flipping, losing all your money on the first deal isn’t the best way to begin, so follow James Dainard’s advice instead.
James has been flipping for two decades. He’s had good flips, bad flips, stinky flips, flips that have fallen over, and everything in between. Today, he’s going to unveil the EXACT steps he follows to analyze any potential fix and flip BEFORE he buys it. If you’re a rookie real estate investor, WATCH THIS VIDEO, or you could get burnt (badly) on your next house flip.
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My plan moving forward in 2024 is buying at the right price, will not buy any lemons or houses with tenants inside or staying post close. I will Focus on flips that could be done within 3-6 months. Also, I will never buy sight unseen ever again. Good luck friends!
Why not houses with tenants inside or staying post close? Any specific reason?
@@TheEthanHunt when you flip a house, you will quickly realize that you’ll need to move through your process as quickly as humanly possible and that you will have enough problems to solve as is. With that being said, you’ll want to mitigate other problems as much as you can. Buying a property with tenants could be very costly and even worse, can prolong the amount of time into the equation. Flips should be “In and out” and tenants can make that impossible.
Agreed! Stay away from unknown timelines issues!
@@TheEthanHuntcan slow down the timelines and reduce the overall annual return. Also hard money debt typically won’t be covered by rental rates
Question:
I bought my first rent house in early January. The house is nearly ready to rent, but I went over budget by a good 8k. The 8k is pretty much all on credit cards. What is the best way to consolidate those credit cards at a lower interest. HELOC?
Appreciate it for deep dive into the details.
All In The details!
Thank you! This was an excellent presentation!
Thank you!
Thank you!
All the best with this Flip!
Thanks 🙏🏻 💪
Thank you James! This was an excellent video. Very informative! 🎉
Thank you!!!!
FANTASTIC video, James!! I’d love to see many more like this. Forgive my ignorance, but what do you mean by the fact that you could add in a “primary bath?”
Main bedroom with its own bathroom
Well explained 👏🔥🔥🔥
Thank you!
take a close look at drainage , lot size , parking
Drainage can be a deal killer for sure!
What is the software called for the calculations/projections? Sorry if I missed it
Great video! So you like to use $90-100/sqft for full renovations. For cheaper and less intensive projects, do you have any other rules of thumb like that for estimating the rehab cost?
As a new flipper just trying to get my feet wet, I've considered just using a full renovation estimate in analyzing my first few deals to cover my butt, but I'm afraid that level of conservatism will seriously delay my entry into the business...
Im curious about how to evaluate the deal if there is a "deal breaker" like a busy road or other multi family houses around it (meaning theirs tenants for neighbors and not homeowners).. would you walk away or would you reduce your offer price? How do you factor those things in, if at all?
16:52 Id love a detailed video about securing a construction loan or at least getting started
Will talk to BP about doing this!
@ProjectRE thank you. I think most your watchers need help in that area since we're all new
@@josiahamazeand to read a term sheet. Many investors get shocked by the draw process
I totally agree this is the part as a new investor I’m unclear how it works. Would love a detailed vid as well
Happy to connect about construction loans!
Such a great vid on how to do flips in today’s market! I wasn’t quite clear on the financing with the hard money lender. He said purchase price = $780k + $200k rehab = $800k loan balance. He needs to put 15%-20% down. Is the 20% down on the loan balance? How much of his own cash is he using and how much is the hard money lender financing??
Thanks. I need to add ARR instead of just ROI to my calculator
How much do you factor in per sqft, for rehab? $200 a sq ft??
Just proves James is a Boss. If he’s getting that kind of return with flipping in this market 🤩
All about leveraging right!
Where do you get your wholesalers?
What market are you in? I am a Hard Money Lender, and I have a good bit of Wholesalers I come across.
I like James, but ever time he says Performa instead of Proforma it drives me a little crazy.
It's PROforma. Crazy that he's been an investor for this long and still doesn't know that. I've only flipped about 30 properties over the past three years and own some rental properties, and even I know it's PROforma.
Broforma* 😂
😂 it just rolls off my off my tongue that way. We at least spell it right… talk to fast for my own good
@@ProjectRE Thank you for taking the time to reply, James - I didn't expect that. I want to thank you for all of the valuable information that you share. Everything else that you say is so good, and so useful! Much appreciated!
Hello!
Can anyone recommend a course to learn new information about property management and facilities management?
Bigger pockets has a great book on property rental management. Check it out ! I have it and it’s great. (Not sponsored 😂)
Do u have to be in the area? I kept getting made fun of saying you need to be in the area to keep contractors in check
No finding a reputable and communicative GC is the most important part. I make sure to communicate clearly and redundantly with all my clients. It comes down to your relationship with your GC. If you're in the Seattle area I offer free consultations.
You don’t have too… but we only flip I. Our back yard. I do do passive flips nationwide where I’m partnering with a operator and typically make 25% returns
i never wanted to do flips but after watching his videos I'm kinda into it and seems reasonable
Stack that cash and build wealth!
When he said a 50% return over 6 months, he means a 50% return on his approx 200K down payment on the loan for the entire project correct?
Can you timestamp?
Yes. But it turns into making 100k in 10 months. Assuming it sells right away
What this means: if I put $100k into flipping I expect to make $50k on the project after all costs. Leveraging with construction loans allow for this.
Thank you for the clarification.
❤
Love the videos but that stuff isnt garbage. That's someone's life's possessions. We can never forget our humanity in this industry. Love the content!
One person's treasure is another person's trash and vice versa! Don't forget the humanity and also that our material possessions do not define us.