Looking to start flipping

[Nancy O.]

Hi guys. I'm new here. I have experience in rentals but want to start flipping. Given the current situation and market, is it a good time to start or safer to wait? I have been following housing market trends. Demand exploded after April but some areas are flattening out this month. Is the trend likely to dip anytime soon? 

For those who have been successful in flipping:

What matters the most in a deal to you? 

How do you determine the probability of success? 

Can you do this solo and just contract out all the work or is it better to form a partnership and start with a group of people? 

How do you find deals? Foreclosures? Wholesale?

Do you recommend starting off on a house that doesn't need too much work?

If rentals are considered safe investments for everyone then how would you rate flipping? Leave it to the pros? Anyone can be successful? 

I'm located in Los Angeles. Looking to do deals in SoCal. I have funds in place but still learning and deciding if flipping is a go.

[Nabil Suleiman]

1. Making money 

2. I underwrite all possibilities of failure into my numbers, and have multiple exit strategies if the original strategy of selling doesn't end up working out to my expectations. 

3. You can do it solo if you have the network and the team to succeed. 

4. Depending on how you are financing the deal will determine if you can buy something through foreclosure, and wholesalers tend to suck most of the time, there is a small percentage that find what I would consider a deal. Most take advantage of the excitement of new people to the world of flipping or investing. 

5. The less work the home needs the less likely you are to make a profit. In this market if the home just needs a basic facelift you are competing with retail buyers who also have all cash to buy homes. 

6. I don't consider rentals "safe" investments, but there is generally a little more wiggle room in that concept that in a flip. Some people I know that rent, rent at a negative cash flow.  A flip has a shorter timeline and you don't have anyone paying for any of the mortgage while in process of fixing or selling. I honestly don't think most of the people I know in the flipping world are "pros," most are newer, few stay in the flipping world forever, but a larger percentage are newer and give it a try. Its a very stressful experience for most. I question why I do it pretty often, and its only when the home sells that you justify doing it again (obviously if you make money)

7. So cal is a tough cookie to break into, but its possible. Just be patient and dont just jump into something because you want to do something. Thats how bad choices happen and is often the most common reason why people do it. Run your numbers and make sure you have gone through all possible bad scenarios and ways to get out of them or still make money.