J Scott's Book on Flipping-Buy THAT Before You Buy Any Guru "Program"

J Scott's Book on Flipping-Buy THAT Before You Buy Any Guru "Program"

Broker, Investor, Property Restorer · Fox Point, WI · Member since 2012 · 288 posts · 120 votes

I bought the J Scott book on flipping houses several days ago and have been reading it whenever I can and I think its GREAT! Now, I've been investing in RE to some extent since 1999, when I bought my first duplex and started flipping houses part-time in 2004, flipped five of them between 2004 and 2007, took a break from it until 2012 when I thought the market was good again and have now been doing it full-time ever since. I've done flips in value from about $60k on the low end up to $750k on the high end, so I've had experience in nearly all levels of my local market. In my time flipping from 04 to 07, I had one that I lost money on, two that broke even and two that made some money. Since getting back into it, all of my projects have been profitable, several of them have been very profitable. So, I think I can say now that I honestly know a pretty good amount about flipping houses and am learning quite a bit about other methods of RE investing as well. Yet, I always believe that you can learn more about anything, which is why I bought J Scott's book and so far, I'm VERY impressed!

Here's the thing and the point I want to get across to anyone looking for a guru to get them the info or the "magic secret" to flipping or any other part of RE investing. THERE IS NO MAGIC SECRET! Its a business like any other and requires hard work, organization, follow through, etc etc. From what I can see, everything I think I would cover is in this book. I've already picked up several new ideas and things to learn myself and I've been doing this for years. I would HIGHLY recommend that before you spend $99 or $299 or whatever price whatever guru wants to take from you for his/her info, that you spend just $29 and buy this book instead. No, he's not promising any magic or overnight riches, but what would you rather get, some honest advice and education or have someone "blow smoke" up your you know what???

Several people that have been very successful in different types of businesses have all given me the same advice over the years, that if you have even an OK idea for a business, if you run your business well, run it efficiently and work hard at it, you're likely to succeed over the long run. Conversely, even if you have an incredibly great, awesome business idea and you run a sloppy business and you're inefficient, you're likely to fail. Flipping houses is no different and this book will show you how to do it the right way!

FULL DISCLOSURE-I'm NOT at all connected with BP, J Scott or anyone else connected with the book. I did exchange a few emails with J Scott about a year ago, just to discuss how much I liked his website and inquire about his plans to invest in my area-that's it!

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J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
12y
Originally posted by @Stephen Underhill:

I was curious btw, I've done a few walkthroughs on properties and learn something each time, but what advice could you give to us rookies as to what to look for during that first walkthrough to identify some signs of more than cosmetic problems that will help us get a better idea of what will be needed. Like I said, I'm learning to look for more as I go and I know the more I do it the better I'll get, just want to accelerate that any way I can!

First, my biggest suggestion to new investors when it comes to inspections is to find a great home inspector and hire him to do an inspection on a typical house you would plan to rehab. It could be a house that you have under contract, but it doesn't have to be. It could just be a house that you or a friend live in that's similar to what you would ultimately end up rehabbing.

Then, spend a couple hundred dollars to hire the inspector to come out and do a full inspection. This will do three big things for you:

1. Teach you the methodology the inspector uses to walk through the house and evaluate each of the specific systems and areas. While much of what an inspector will look at will coincide with the "major components" I list in the estimating book, seeing exactly what he does and how he does it will give you more of a real life perspective on what you should be looking for while walking through a house.

2. Give you an opportunity to ask a LOT of questions from the inspector during each phase of the inspection. Ask him what he's looking at, what he's looking for, what things mean, etc. While you're paying him to do an inspection, you should consider it an opportunity to get an education as well.

3. Teach you to look for signs of the BIG problems, like foundation/structural concerns, major plumbing/electrical issues, etc. Most renovation items are relatively inexpensive, but there are some that are costly and if you learn how to look for these things, you can always bring in specific inspectors (structural, roofing, foundation, etc) to evaluate concerns you have without needing the general inspection.

I got inspections on my first 4 properties, and after that, it started to become obvious all the things the inspector was looking at/for and I soon realized that if I followed the same methodology and looked at all the systems the way he did, it was actually very easy to find any major issues. Sure, there were little things that I missed at first (code issues, mostly), but those are things you learn as you go along, and that don't generally cost a whole lot to fix even if you do miss them.

Even after 60+ rehabs, I still bring in structural engineers, foundation specialists, termite inspectors, mold guys, etc., when I spot signs of potentially large issues, but the other stuff I can evaluate myself because I do exactly what my inspector used to do during his inspections (at first, I actually used his inspection checklist to do my walk-throughs).

Over the next few months, I'm planning to get to work on some software ad videos on inspecting, evaluating, estimating, renovating, etc. Hopefully these will help decrease the learning curve required to come up to speed on these things, but these are things that will always take time and effort to master (and, if you're like me, you'll probably never master it).

My biggest piece of advice is still to just be very conservative -- assume there will be some little surprises along the way (even after many, many projects) and if you see any indication of major concerns, get them checked out sooner rather than later.

See this reply in the discussion

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  • Rental Property Investor · Tulsa, OK · Member since 2013 · 27 posts · 4 votes
    12y

    Outstanding, thanks for the info about the book. I've read that it's supposed to be a good read, but it's nice hearing it from someone that is in the business.

    Hopefully they can come out with an audiobook copy of it too.

    I'll take your advice and get this book soon.

    Thanks again

  • Investor · Deerfield Beach Florida and Tupper Lake, N.Y. · Member since 2013 · 307 posts · 118 votes
    12y

    I mentioned to my wife, literally 20 minutes ago that I wanted to buy J's book, but I really don't like reading. I'd love the audiobook, but I may have to break down and buy and read the print version first.

    Thanks @ for sharing your knowledge w/ BP.

  • Dawn AnastasiPro Member
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    12y

    I didn't think there was an audiobook.

  • Investor · Los Angeles, CA · Member since 2013 · 71 posts · 16 votes
    12y

    I just bought both books since I made an offer on a short sale which will likely need a rehab if the offer is accepted. I have barely started the estimating rehab costs book and there is a lot of info here.

  • Real Estate Investor · Baltimore, MD · Member since 2013 · 17 posts · 3 votes
    12y

    I agree! Two well written books packed with information, forms & worksheets all for less than what I spend on coffee per month! I recommend these books to anyone looking to get into flipping or rehabbing.

  • Broker, Investor, Property Restorer · Fox Point, WI · Member since 2012 · 288 posts · 120 votes
    12y

    I don't see anything about an audiobook either, maybe its something for them to consider, although for me personally, I think I learn much better by reading and by concentrating on what I'm reading. Although maybe they could hire James Earl Jones to read the audiobook, now that would be cool!

  • Joshua D.Pro Member
    BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
    12y

    Hey Guys -

    First, here's a link to the books:

    BiggerPockets Presents: The Book on Flipping Houses & The Book on Estimating Rehab Costs

    I'm glad you guys have found the books to be so valuable. We are very proud to be working with J on these and do believe they are the most valuable books on the topic of flipping and estimating out there.

    To the question about an audiobook, we don't currently have one. While some have expressed interest, it is a rather costly investment to put one together, and our books are quite lengthy, which would add to the cost. We'd have to price the audio books prohibitively high to recoup our costs to produce them, so for the short term, I don't believe we'll be releasing the books in audio format. Sorry.

    That said, if someone has a hookup with James Earl Jones, we'd love to have him do a read for us ;)

  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    12y

    Wow, thanks Robert (and others!)...I sincerely appreciate the kind words...

    One of the main issues with the audio books (other than cost) is the fact that our books have a good number of tables and charts, which don't translate very well to audio. In fact, the Estimating Rehab Costs book is almost all tables, and I'm not sure there would be any good way to translate that into an audio format that made sense.

  • Investor · Lafayette, IN · Member since 2013 · 64 posts · 1 vote
    12y
    J Scott I have to agree with everyone, I really think your book adds valuable insight for those of us new to the game especially. It's a great reference for me to have a ballpark once I have a list of issues I need to work on. I was curious btw, I've done a few walkthroughs on properties and learn something each time, but what advice could you give to us rookies as to what to look for during that first walkthrough to identify some signs of more than cosmetic problems that will help us get a better idea of what will be needed. Like I said, I'm learning to look for more as I go and I know the more I do it the better I'll get, just want to accelerate that any way I can!
  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    12y
    Originally posted by @Stephen Underhill:

    I was curious btw, I've done a few walkthroughs on properties and learn something each time, but what advice could you give to us rookies as to what to look for during that first walkthrough to identify some signs of more than cosmetic problems that will help us get a better idea of what will be needed. Like I said, I'm learning to look for more as I go and I know the more I do it the better I'll get, just want to accelerate that any way I can!

    First, my biggest suggestion to new investors when it comes to inspections is to find a great home inspector and hire him to do an inspection on a typical house you would plan to rehab. It could be a house that you have under contract, but it doesn't have to be. It could just be a house that you or a friend live in that's similar to what you would ultimately end up rehabbing.

    Then, spend a couple hundred dollars to hire the inspector to come out and do a full inspection. This will do three big things for you:

    1. Teach you the methodology the inspector uses to walk through the house and evaluate each of the specific systems and areas. While much of what an inspector will look at will coincide with the "major components" I list in the estimating book, seeing exactly what he does and how he does it will give you more of a real life perspective on what you should be looking for while walking through a house.

    2. Give you an opportunity to ask a LOT of questions from the inspector during each phase of the inspection. Ask him what he's looking at, what he's looking for, what things mean, etc. While you're paying him to do an inspection, you should consider it an opportunity to get an education as well.

    3. Teach you to look for signs of the BIG problems, like foundation/structural concerns, major plumbing/electrical issues, etc. Most renovation items are relatively inexpensive, but there are some that are costly and if you learn how to look for these things, you can always bring in specific inspectors (structural, roofing, foundation, etc) to evaluate concerns you have without needing the general inspection.

    I got inspections on my first 4 properties, and after that, it started to become obvious all the things the inspector was looking at/for and I soon realized that if I followed the same methodology and looked at all the systems the way he did, it was actually very easy to find any major issues. Sure, there were little things that I missed at first (code issues, mostly), but those are things you learn as you go along, and that don't generally cost a whole lot to fix even if you do miss them.

    Even after 60+ rehabs, I still bring in structural engineers, foundation specialists, termite inspectors, mold guys, etc., when I spot signs of potentially large issues, but the other stuff I can evaluate myself because I do exactly what my inspector used to do during his inspections (at first, I actually used his inspection checklist to do my walk-throughs).

    Over the next few months, I'm planning to get to work on some software ad videos on inspecting, evaluating, estimating, renovating, etc. Hopefully these will help decrease the learning curve required to come up to speed on these things, but these are things that will always take time and effort to master (and, if you're like me, you'll probably never master it).

    My biggest piece of advice is still to just be very conservative -- assume there will be some little surprises along the way (even after many, many projects) and if you see any indication of major concerns, get them checked out sooner rather than later.

  • Investor · Lafayette, IN · Member since 2013 · 64 posts · 1 vote
    12y

    much appreciated @J Scott I planned on looking up the inspection companies locally next week after everyone gets back from Xmas

  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    12y

    Here's another inspection "trick" that experienced investors use: Anticipate repairs based on the age of the house.

    Oftentimes, the age of the house will tell you a LOT about what needs to be done. For example, there was a long stretch where I was buying exclusively buying houses that were built in the late 80s and early 90s. These houses were about 20-25 years old and pretty distressed. Since the typical lifespan of a roof and an HVAC system is 20-25 years, nearly 100% of these houses need their roof and HVAC replaced. In fact, I didn't even need to bother to look at the roof or the date on the furnace -- I knew to just add in about $10K for that work.

    As another example, a type of plumbing pipe called Polybutylene was common in the late-80s to mid-90s in Atlanta, where I primarily invested for several years. This material turned out to be defective, and needs to be replaced in any rehab property. I knew going in that if a house was built between 1990-1998, there was better than 50/50 that it had this type of piping and that I'd have to spend $3-5K to replace it.

    Another example is houses built between 1990 and 1996 in my area. LP siding was a type of OSB siding made during this time that was popular in Atlanta. Unfortunately, it turns out that if not painted correctly (which is nearly always the case when paint it sprayed on it instead of brushed), it will deteriorate and need to be replaced. Since most painters in our area were using sprayers back then, most LP siding is in bad shape and has to be replaced. So, for about 50% of houses built between 1990-1996 that I rehabbed in Atlanta, I could assume needed about $8-10K in re-siding work.

    For houses built between 1940-1960, I've found that most haven't replaced their galvanized plumbing, and drain lines are often in very poor shape, and I'll budget $2-3K extra for surprise plumbing issues. Likewise, for houses built in this time, there is often remaining asbestos insulation and floor tiles in unfinished basements that needs to be properly disposed of. I'll typically budget $1-2K for that.

    These are just a few examples of the age related stuff you'll encounter, and as you do more houses in a particular area, you'll start to notice a lot of issues that keep popping up in houses of similar age.

  • Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    I bought the book too a few weeks ago, but I haven't had time to start reading it yet. I am looking forward to it.

  • Investor · Hendersonville, NC · Member since 2013 · 754 posts · 281 votes
    12y

    I give it a thumbs up for sure. Not a flashy book, so you do have to stick to it in order to get through it. A tad expensive. But a very efficient book.

  • Broker, Investor, Property Restorer · Fox Point, WI · Member since 2012 · 288 posts · 120 votes
    12y

    I just wanted to bump this one back to the top of the pile, I've read probably 75% of it by now (I'm not going start to finish but skipping around) and its really, really good and so informative. Remember, I've been doing this for years and have learned "the hard way" many things about flipping and now have a pretty good string going of not just making a profit on every one but making good profits, yet I'm still learning from this book! I can only imagine what a newbie would be able to learn, its a goldmine of info!

    So, my original reason for posting this was because I was in this section of the forum and saw post after post of people hoping to find the info they need in some particular guru's crap that they sell for WAYYYY too much money, or the seminars they overcharge for, the boot camps, blah blah blah! DON'T WASTE YOUR MONEY ON GURU CRAP!!! JUST BUY THIS BOOK FOR $29!!!!!

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    12y

    @Robert Taylor

    J. Scott books great investments I bought both.

    For an inspector go to Ashi.com search for certified you cannot go wrong.

    Good Luck

    Paul

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