All Forum Posts by: Chintal Patel

@Yosef Lee

Love it! Thank you for sharing!

@Melissa McRay Johnson

That's awesome! Creating a well rounded business with multiple income streams is absolutely the way to go. I'm glad to see your success and so happy that you shared this insight with us. 

Patrick, 

Excellent point! Using the funds from flipping profits to invest into cash flowing assets is a great idea. That's the direction I am heading in now as well. To answer your question, I would say to really codify which kind of properties/flips you want to focus on and align your business to that niche. Markets and houses come in all shapes/sizes/designs. Ask yourself: 

1) Would you be most successful flipping with small ranches (roughly 1000-1500 sqft) or large colonials (3000-3500 sqft)? 

2) What kind of housing does your market need the most, at what price point? (in some really expensive markets micro housing does really well) 

3) What are your biggest strengths as an investor? (Are you really great at design, or communication, or finding fresh deals)

A bit of introspection can go a long way when starting this kind of business activity, I hope this gave you some insight and how you should approach this! What works well for me in my market - small ranches with minimal rehab needs that sell right under 300k. I have found that this type of property is really attractive in my market. 

Best,

Chintal

Darius,

Thank you for your insight! I see your point that flips allow for opportunistic profit. It's important that we expose ourselves to different strategizes and find what works best for us. That is a great strategy you are using and I'm happy to see your success. 

As a full-time and active real estate flipper I have gained some extremely valuable information that may be helpful for anyone just starting out. Just to give some context, I started flipping houses in my senior year of college at Rutgers University while I was studying Economics and Real Estate. It was a nontraditional route for sure because my friends were securing internships while I was out looking for ugly houses to carpet/paint for a profit. Since graduating I've flipped several houses and transacted millions in residential real estate. My company functions as a investment/consultation company giving everyday working professionals the opportunity to invest alongside a full-time experienced flipper. My company also offers custom construction services to clients for their personal homes. As I've navigated through these first few years I would like to share my experience, hopefully someone can get value from it: 

The Lesson: Flipping houses is technically not investing in real estate. Let me clarify; flipping houses is a buy/sell business just like any other inventory one could buy/sell. An example would be a retail store that sells hats, they source hats, buy hats, maybe brand those hats, and sell them for a profit. This a business model that is based on selling inventory for a profit. Yes, the opportunity to add value exists in flipping houses, but it does not change the fundamental activity which is that flipping houses is an active merchandise style business. A hat store buys and sells hats, we don't call it a hat investing business right? 

The Understanding: Now, there's absolutely nothing wrong with flipping houses if you have the right skillset like patience, ability to manage several things at once, attention to detail, and an understanding of the micro-market. It is a difficult task but pays well. This may be a great starting place for someone who is looking to leave a dreaded job in pursuit of something better. But, just understand that there is very little "building" involved in flipping houses. 

The Next Step: Now, if you want to build wealth, enjoy a life of financial freedom and let your money work for you. The way to do that is through investing in real estate by buying an asset, having it pay you monthly (while paying the debt down), and having it appreciate over time to compound your wealth. As I learn this lesson, I want the reader to understand that it is your choice how you want to make money, I felt like it was my responsibility to convey this message as best as I could to help you avoid mistakes that I made. My company will re-strategize it's business plan to include purchasing assets that produce cashflow and build wealth. I really enjoy flipping and building high quality housing, to design construction and manage the projects we tackle. I will continue to do the things that align with my purpose, but I have a newfound respect and understanding for the fundamentals of investing now. 

Thank you for reading. 

Best,

Chintal Patel

@Thomas O.

Hey Thomas!

I’ve purchased multiple properties on Auction.com and Hubzu. These sites use the closing agencies that the seller selects. These sellers are almost always banks and yes, they usually are expensive to go through. It seems unreasonable to pay $800-$1500 for fees to the seller’s closing agency even when you are selecting your own. However, regardless of expense I would suggest that you select and use a title agency that you find yourself. Many times the seller’s closing agency is not looking out for you. Ensuring that you receive a free and clear deed is crucial for your success in real estate, it will be advantageous for you to find a title agency that you like working with and one that will watch your back on any title issues. I believe that it is worth the extra investment.

I hope I was able to give some valuable insight!

Good luck!

- Chintal