I'm look to flip long distance!

I'm look to flip long distance!

New to Real Estate · Columbia, SC · Member since 2020 · 97 posts · 65 votes

Hey Everyone,

I need all the experienced flippers who have every flipped a house virtually or long distance front and center! I came up with the idea this morning that I wanted to venture into other markets to fix and flip and partner with active flippers in those markets to build up my cash to invest with other strategies that I am interested in. I want to get insight from people who have actually done this successfully. Here are a few conversation starters:

1. Did you build out a team to do the flip virtually or did you partner with someone in the market who had everything else in place, but you brought them some form of value?

2. If you built out a team, how did you find the players for your team and how did the qualification process go?

3. If you partnered with someone in the local market, how did you find them and how did you know they would be a good fit? (Did you base this off their goals or who they were as a person?)

4. What processes did you put in place to open lines of communication, get updates on what's going on, make sure that your interest in the deal was protected, and that the process went smoothly from start to finish?

5. What challenges or struggles did you face by not being local?

6. What did you include in your operating agreement with the partner?

7. What criteria/I will only do this deal if...did you create along the way?

Any other advice would be greatly appreciated.


Thanks in advance!

Mashika
  

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Investor · Los Angeles, CA · Member since 2021 · 4 posts · 4 votes
5y

Good morning Mashika, I am based in CA and am flipping in TX, because it is less capital intensive. 

I believe it is possible. The largest challenges to me were investing in a market I don’t know, but I think that is where building out your team is of the utmost importance, particularly a contractor you trust and a strong real estate agent. 

See this reply in the discussion

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  • Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    5y

    I would just flip where I live 
    it’s hard enough when you can go look at the property every day 

    What makes you want to add another level of complication and expense?

  • San Antonio, TX · Member since 2019 · 930 posts · 836 votes
    5y

    Only two ways I would flip long distance to be honest.

    1.  If I moved away from a location and already had a team I had been working with locally for a few years.

    2.  If I had a partner at the flipping location that I trusted.

    Any other way is going to be very challenging indeed.

  • Investor · Los Angeles, CA · Member since 2021 · 4 posts · 4 votes
    5y

    Good morning Mashika, I am based in CA and am flipping in TX, because it is less capital intensive. 

    I believe it is possible. The largest challenges to me were investing in a market I don’t know, but I think that is where building out your team is of the utmost importance, particularly a contractor you trust and a strong real estate agent. 

  • New to Real Estate · Columbia, SC · Member since 2020 · 97 posts · 65 votes
    5y

    @Esprit Smith how long have you been doing it?

  • Investor · Los Angeles, CA · Member since 2021 · 4 posts · 4 votes
    5y

    @Mashika Johnson I just started this year.

  • New to Real Estate · Columbia, SC · Member since 2020 · 97 posts · 65 votes
    5y

    @Esprit Smith im going to message you

  • Kerry Noble JrPro Member
    Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    so Im on the other end......im in the market and my partners are virtual........

    i do the stuff on the ground and get the work done......it has been amazing working with my out of state partners.....

  • New to Real Estate · Columbia, SC · Member since 2020 · 97 posts · 65 votes
    5y

    @Kerry Noble Jr I'm going to message you

  • New to Real Estate · Columbia, SC · Member since 2020 · 97 posts · 65 votes
    5y

    @Lindsay Davis Hey love! Thank you so much for the feedback! You are right in your assumption, I have done a few deals locally, but no flips. I'm reading books and working on getting hands on experience in my backyard by partnering with experienced flippers on deals.

    This week I have actually been thinking about planning week long stays in the markets that I would invest in. That way I can spend time learning that market first hand through physical exploring and having conversations with big players (agents, brokers, investors, etc) and also build my team. I am working on getting specific about the markets that I would do deals in virtually so that I can start planning my travel out and start making it happen.

  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    5y

    That's really tough to do. Holding long distance is difficult enough, but getting a big enough margin to make flipping worth it from a distance is a bigger challenge than I would go for. The reason to buy long distance is if you're in a market that doesn't cash flow. I don't see a big advantage to flipping long distance. Even if the prices are much higher, I would still lean heavily toward trying to flip nearby if you're set on flipping.

  • Flipper/Rehabber · Member since 2018 · 87 posts · 67 votes
    5y

    @Mashika Johnson

    I flip long distance, I don’t think I can type out all these answers but message me and we can set up a time to chat if you need

  • Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    I guess you guys who recommended not to do it don't get PMs. Only the positive feedback gets those. lol

  • Rental Property Investor · Fort Lauderdale · Member since 2013 · 3 posts · 3 votes
    5y

    @Mashika Johnson

    Flipping long distance is not as hard as you think. I’m in southeast Florida and my backyard prices are getting a little out of hand. So I invest in all the other major cities in Florida and greater Atlanta. I’ve done 50+ deals in the last year and only stepped foot maybe 3 homes in the last year. Having a partner in the deal always helps but is not always necessary depending on the property you acquire and your personal goals. PM me, I’ll give you a few tips on what I do.

  • New to Real Estate · Columbia, SC · Member since 2020 · 97 posts · 65 votes
    5y

    @Eric James lol pretty much

  • New to Real Estate · Columbia, SC · Member since 2020 · 97 posts · 65 votes
    5y

    @Philip Coiro are you currently doing this?

  • New to Real Estate · Columbia, SC · Member since 2020 · 97 posts · 65 votes
    5y

    @Eric James do you have something positive to add? 👀 I don't like when people shy away from an idea or tell others to do the same because they are to afraid to make it happen, they don't have the know how, or they can't see past their front porch because of some bad experience or werid comfort zone. I only want to talk to people who are clearly doing it not with someone who wants to deter me from it. I have no problem hearing caution or actual advice because they tried it and it didn't work for them but don't flat out tell me I shouldn't do it. 🙂

  • New to Real Estate · Columbia, SC · Member since 2020 · 97 posts · 65 votes
    5y

    @Melchire St.ville pm sent

  • Investor · Miami, FL · Member since 2020 · 80 posts · 66 votes
    5y

    If you're from Columbia SC then why not start there? I see no advantage to starting out of the area. If you do start out of the area, you are going to really have to trust the contractor with a lockbox on the property or hire a property manager. I would do a few flips near where you reside before expanding outward.

  • New to Real Estate · Columbia, SC · Member since 2020 · 97 posts · 65 votes
    5y

    @Shawn Bhatti because I shouldn't have to wait for deals to come to me in my backyard when there are other deals readily available in other markets.

  • New to Real Estate · Columbia, SC · Member since 2020 · 97 posts · 65 votes
    5y

    @Mohammad Miron Hossain Mithu there are PLENTY of virtual wholesalers, that's like the big thing right now especially with COVID

  • Flipper/Rehabber · Member since 2018 · 87 posts · 67 votes
    5y

    @Mashika Johnson

    Yea, I’m closing on my 3rd long distance flip this week actually.

  • New to Real Estate · Columbia, SC · Member since 2020 · 97 posts · 65 votes
    5y

    @Philip Coiro jumping in your inbox now!

  • Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    5y

    @Mashika Johnson when I have a project going on (like I do right now) I swing by my job sites every single day and almost always find something to correct/address that if I wasn’t here would just get swept under the rug/ done incorrectly. I’m not sure how much it would affect my bottom line if I wasn’t watching over my projects, but you definitely want someone competent doing it if not yourself. Tradespeople just aren’t what they used to be, so many do extremely poor quality work and need near-constant oversight (saying this as a former tradesperson and occasional carpenter/handyman still myself). Overall the market has been kind to flippers over the past few years, especially the last 12 months. Values have been going up so much nearly everywhere across the country that you could have bought a property a few months ago and could probably resell it for a profit without even doing anything to it. If that continues, there will be a wide margin of error for you. But if the market turns, it could have the opposite effect. Therein lies the risk. Even though the market has been forgiving, there have also been a lot of challenges in construction over the past year, mainly finding good quality workers that show up, getting permits and materials and getting things done in a timely manner. Most established tradespeople are booked up for many months if not years right now, permitting departments are backed up for months, and a lot of materials are simply unavailable or in back order for months due to supply chain issues. Finding great contractors and having a system of checks and balances via someone representing you on the ground making sure things are getting done and getting done right will be critical. Flips need to be completed quickly in order to be profitable as a rule and if you don’t already have crews lined up, verify that you can get materials and and any permits you need and have everything dialed in really well, that will be a major hurdle whether you’re doing it remote or living in the property. Good luck!

  • Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
    5y
    Originally posted by @Michael Plante:

    I would just flip where I live 
    it’s hard enough when you can go look at the property every day 

    What makes you want to add another level of complication and expense?

    This. 

    Sounds like a horrible idea IMO unless you do it at scale (which is also a crap idea to me). Unless you are just a financial investor in an experienced flipper. That's not flipping though.

  • New to Real Estate · Columbia, SC · Member since 2020 · 97 posts · 65 votes
    5y

    @Steve K. Thanks for the insight!

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