All Forum Posts by: Christian Hwang

Hi everyone. 

I'm currently flipping properties in my backyard (SoCal) and have the liquidity to fund multiple projects. However, I enjoy the more operational side of flips and would like to grow my business out of state to increase flipping volume and have less competition in finding deals. I know the grass is not always greener on the other side, but any tips on finding my next market?

Below are some actionable steps I plan to take after identifying a market:

- find a rock star agent by referral and/or calling brokerages and asking to connect with their top producing agents

- find a rock star contractor by referral and/or yelp

- have control over construction by setting per diems to incentivize contractor to finish the project on time, within budget, and with good quality

- leverage my rock star agent's time to check up on the construction process (checks and balances)

- hire independent handymen/inspectors to check up on the construction process for a flat fee (checks and balances)

Hi Dylan. 

Like many businesses, the flipping niche has 3 categories that differentiate one flipper from another: quality, faster, cheaper. I'm assuming you haven't achieved mastery in all 3 categories, but realistically you can choose from 2 of the 3 categories. If you get your GC license and intend to run your flips entirely, you may save money (cheaper), but it'll cost you your time (faster) and might have better quality of work. If you want to scale, it likely won't involve you running your own renovations as a GC. You can always do some hands-on work without a GC license so I would agree with the others who say that having a RE license and GC license are not worth it.

Take my advice with a grain of salt since I have neither a RE license nor a GC license.

Hi Silas.

Do you plan to have a GC or handyman run the construction project? Or do you plan to do some of the work yourself and hire out sub contractors where necessary?

Hi Mary. I currently a flipper in my backyard in CA and am in a similar situation where I'm looking to flip out of the state. David Greene mentioned that when he does out of state renovations, he likes to leverage property managers to overlook the construction process. In our situation, property managers won't likely fit into the pie since we are looking to sell the property in the open market.

However, you can always leverage your "rock star" agent who found you the deal (assuming it's not an offmarket deal or from a wholesaler) to check up on the construction every so often. They have every incentive to make sure construction is up to standard since they will receive 5-6% (to be split with buyer's agent depending on state) of the sale price in commission. Another option is to hire independent inspectors or even handymen whom you can pay a flat fee for every time they inspect your house. This can be far cheaper than having an in-house project manager to do this for you.

Based off your statement "this will be my first time managing a renovation out of state", it looks like you are familiar with the renovation process. I'm sure you and I both understand that as flippers, having control over the construction cannot be stressed enough. Make sure you put in your contract with the GC some performance incentives to make sure the renovation is done on a timely manner. Let them know that there will be routine quality control checks/inspections so that if your third party inspector finds any issues with quality, the GC will be responsible for paying for the correction.

These are just some theories that I think will help and plan to implement when I operate out of state flips. I hope this helps!

I would like your advice on one thing, however. Having lived in Southern California my whole life, I live in a bubble and am not aware of the flipping market outside of my backyard. The purchase price, construction/labor costs, and ARV are all higher here in California than most states so I already have a high tolerance for risk and have the necessary liquidity to scale. How did you go about finding your next market to flip?

Hey Dijana. Is this project still available? I would like to discuss how my team would be able to provide funding on the rehab and get you the cash to close the deal. Please dm me!

 Let's connect! Shoot me a message!

 Thanks for your comment! As for lenders, I was informed that they are primarily looking for assets and NOT property performance. In my case, I have very few assets having recently graduating university and do not plan to keep the house for rent as I plan to sell immediately. I would imagine my loan terms would be less than ideal and I'm talking to various lenders at the moment. Your thoughts?

Hello! I have been up keeping with BP for a while now. I recently graduated university and am looking for my first fix and flip to manage on my own (I was a part of a fix and flip where the spread was $600k+). I was recently hired to work for Amazon and I want to be as proactive as I can to exit the corporate life and build wealth. Very exciting future I see ahead of me along with inevitable stressful situations but that's what makes life rewarding!

I have PML backing me up with $300k+ and know a GC willing to front rehab costs. GC selection is not a problem as I have a myriad of people in mind, and I plan to solidify my PML through a promissory note shortly. Being a recent college grad, my selection of HML may be a bit difficult to source so I am actively working on getting pre approved.

My MAIN PROBLEM is finding the right deal. If there are any wholesalers or agents with deals for any distressed property in the SoCal region please message me. Also, if you are a lender please feel free to reach out to me with any current loan offerings. 

I am excited to build relationships and to expand my horizon as I venture into this long and rewarding journey towards financial freedom!

First post to test the waters! Please reach out with any questions.

Disclaimer: I was brought onto the project as an assistant and NOT an equity partner. Nonetheless, a wealth of knowledge was gained!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $1,870,000
Cash invested: $300,000

Offering a sliver of ocean view from upstairs, plus an ideal setting conveniently close to the area's most popular shops and restaurants, there's plenty to love in this location. It's incredibly convenient location to Santa Monica beaches and the mountains, Beverly Hills, Culver City and Silicon Beach.