Construction Worker Looking to Break into Fix and Flips – Any Tips?

Question

Hi everyone, I'm new to real estate investing and have been doing some research. I'm very interested in getting started with fix and flips. I currently work in construction and have some experience in all aspects of building. I would appreciate any recommendations on how to begin

Ian Walsh · Answer

Learn your market, know when you see really see a great deal and learn to market.

Monie Marshall · Answer

Hello Dani,

That is great that you have construction experience. I can tell you the thigs that the company that I work for looks for with fix and flips for new investors

Funding up to 75% of the purchase price

100% of the renovation cost

total loan amount not to exceed 65% of the after repair value

credit score of 660 minimum

cash reserves: bank statements to verify

9 months of debt services

If you have any questions you can send me a message. I will be happy to help

Adam Bartomeo · Answer

Buy Low and Sell High! Most new flippers lose money because they are not knowledgably in 3 areas

What the sales price REALLY will be. They operate in La La Land

How to make and stick to a rehab budget. They just buy stuff they think buyers will like.

How to reverse engineer the purchase price to earn a profit. They buy on feelings, I feel like this is a good deal.

Become an expert at these three and you will be successful at flips.

Jackson Harris · Answer

Hey Dani, sent you a PM. I work with flippers in the Phoenix market - would be happy to offer some advice.

Kent Kettell · Answer

Let's connect!

Jackson Ebersole · Answer

Hi Dan,

I just sent you a private message. Looking forward to it.

Dani Rodriguez · Answer

Hi Jackson,

Thanks for the advice. it’s really helpful! I’m definitely interested in learning more about your loans. Please share more details when you have a chance.

Best,Dan

Alan F. · Answer

If Dani is following this thread still, do be aware of assembly bill 968 and how it affects do it yourself flips.

Jackson Ebersole · Answer

Hi Dani,

If what you want is to acquire some real estate, I would recommend using that equity as a down payment for a property that needs to be rehabbed. I wouldn't use all of the funds on the down payment and closing costs but keep some of it to get the rehab started, as most private lenders will give you funds for the rehab after part of that rehab is done. Let me explain that better, imagine your rehab is $100k, you would need to do part of the rehab, maybe $10k, and then you can get the funds for those first $10k reimbursed so you can keep progressing with the rehab.

Given your experience, I would recommend you start with a moderate or light rehab, mostly cosmetic work so that you can do it yourself and won't get your profit decreased by hiring third parties. Also, private lenders will be happy to give you funds for small rehabs and that will help you build a portfolio of rehabs so that they feel comfortable to fund larger rehabs for you in the future.

We're a private lender, if you have any further questions I'll be more than happy to help you with those.

Regards,

Jackson