First Time Flip in the books!

[Josh Starner]

Excited to be closing this week on my first flip! I wanted to share some valuable lessons that I learned along the way. If you are thinking about investing in real estate, feel free to shoot me a message, I would be happy to help. This property earned over 100% annualized cash on cash return. From purchase to sales took less than four months. 

1) Patience is key, make sure the work needed is within your wheelhouse, the less you can sub out the more flexibility you will have in the event you need to complete things yourself to save budget.
2) Pull an OPRA request for all open permits prior to even putting in a bid, you want to verify age of upgrades and know if any permits are still open, especially if you are agreeing to handle the CO.
3) Pull all work permits day of closing, and line your contractors up prior to close. I had already purchased and designed the kitchen prior to closing.
4) Acquire general supplies and fixtures ahead of time, big box construction stores have generous return policies and it will save you time and headaches of having to run out for a paint brush.
5) Meet inspectors and code enforcement officials in person and don’t be a jerk, approach any conflict with curiosity and understanding and ask how they would like to see you address any issues. It goes a long way!
6) Don’t fall in love with the property! I found myself getting lost in the details, looking at things I overlook at my own house. Keep it simple.
7) Design to your demographics. don't overspend unless it's required by the market
8) Have a 10% discretionary budget in your calculations, things will come up. I got stories, just ask.
9) Utilize local social media to vet contractors and take a pulse of the neighborhood, Nextdoor is a great place to see what is happening in your neighborhood, or join a local Facebook group for recommendations.
10) I would discourage you from buying in an area with a HOA, most are poorly managed and the dues add to your carrying cost.
11) Work with the door open and engage anyone who is looking at the house. I was able to meet three perspective buyers just by talking to people who were looking at the house inquisitively. I also put a For Sale By Owner sign in the window to gauge interest in the property prior to listing on the MLS.
12) Be nice and respectful to the neighbors! I carried in groceries for the neighbors and gave them my cell, not once did they complain about noise or work being completed, they knew I respected them.
13) The highest offer might not be the best offer especially if you are flipping in an area far away from your comfort zone. Vet your buyer agents as much as you would the offer. I was fortunate to work with an amazing buyer agent who made my life as a seller and seller agent/owner easy.
14) Lastly, be prepared to learn more than you can in any book or blog written by a guy like me and have fun!

[Andy Sabisch]

Spot on and a great summary of the journey.  It really bothers me when people get sucked into some of these "you can make a fortune in real estate, just pay me $XX,XXX" and you will see how easy it is.  Some may disagree but it is not that easy and by glosing over the pitfalls and true costs associated with any of the real estate routes, many newcomers find themselves underwater in a short period of time.  We have met some of these in our projects and in a few cases, they lost virtually everything and then were deep in debt after buying into the programs.

I have found that Bigger Pockets offers tools, education and contacts that will serve far better than the vast majority of the "get rich with no money" programs out there and for that I am extremely grateful for all that BP has provided me and my wife . . . .

Posts like this one show that while there is money to be made, there are pitfalls and without preparation, you can't hope to be successful.

Thanks for sharing your first flip