Finding Fix and Flip Deals

[Joshua Aceret]

Hi All, 

My brother and I recently acquired a home and are currently rehabbing it to flip. We would like this to become our full-time business in the near future. As I think about the acquisition process the greatest threat to our business is a lack in top of funnel activity. Most of the individuals I have spoken with say the flippers they know/work with are also wholesalers, find their own deals, keep the ones they want, and assign the rest. My issue is I have very little knowledge of wholesaling and it seems like that is a whole different monster to try and take down while we work on getting the flipping side of things up and running. My question is, how many full-time flippers are also wholesaling? Is finding your own off-market deals part of a successful business strategy? Are there full-time flippers who source none of their own deals and leverage wholesalers, MLS, etc.?

Your thoughts and guidance is appreciated! 

[Dan White]

We are full time flippers - You are very sharp to understand that the leads are the hardest part of business. It has been our biggest learning curve - everything else is easy.

We know around 20 plus flippers in our area (Wash DC suburbs)...only 1 or 2 wholesale. Most just flip including us.

As far as lead flow, we utilize Google PPC and some direct mail to get the leads directly. A lot of other flippers do utilize wholesalers and birddogs for getting leads. 

I have noticed that some wholesalers in our area were once flippers and switched to wholesaling. Some of them commented that wholesaling was less liability and almost as profitable as flipping. They also said that they had struggles with flipping...takes too long, no reliable labor, etc.

So, I feel us controlling 100% of our lead flow is best for us. It is more expensive for marketing but allows more profit for us too.