Where to start when learning Fix and Flips

[Jordan Hovan]

Just finished reading the How to invest in real estate book.  I want to start with attacking fix and flip and I am looking for how to get started from the ground level(No experience) anybody hear can lead me in the right direction(recommendations) to get started? 

[Andy Sabisch]

Tread carefully as you will find that flips usually have unexpected surprises, cost more than the estimates and take longer than projected.  See if there are any REIGs in the area that you can join and ten find others that are flipping and see if you can tag along and see some of their properties.  You can get all the how-to guides and spreadsheets but those unseen gotchas can break a deal once you are already neck deep in it.  You are close to Philly (we know the area as we have property north of you) and you will be paying top dollar for flip properties plus the rehab costs.  

Financing the flip will be your biggest hurdle initially.  Look into HMLs in advance of making an offer.  We have seen people that made an offer, had it accepted and then freak out trying to find financing before their window closes and the property is sold to someone who thought that through in advance.  With no experience you will be paying more for money (interest and points) than if you had multiple flips behind you.  When we started we were challenged, now the HMLs contact us looking to see if we have a deal that they can fund. Consider a partner for the first one and share the profit - a win win for both of you.

Finally, if you are considering a property, use the tools here and don't be afraid to post the details on the forum and see what the BP family can provide in terms of input to make an informed decision.

Remember, it is not as easy as it is often portrayed to be.