All Forum Posts by: Marcus Stokes

@Marcus - are you local to Newnan which is why you're looking at this one? Saw it went UC. 

If you're numbers are close to actuals, I think it looks like a pretty solid deal. 

Haven't been there, but pay attention to the foundation - if the floors are level there no action needed. See it a lot in these older homes where things are unlevel and outright wonky. Your end buyer WILL care about it.

Marcus - do you have the deal under contract? If so, feel free to throw it on here and we can pick it apart.

Pay attention to days on market and ARVs in the immediate area / neighborhood. Do not bank on setting a new neighborhood record on $ / sqft - be conservative in your numbers.

Quote from @Marcus Stokes:

Hello! I'm new to house flipping and feeling a bit apprehensive about moving forward with my first deal. Do any of you have some advice for this initial flip? Any tips or insights would be greatly appreciated!

 Will you live in the house after flipping or selling right away? I have a few deals I analyzed recently to give you an example. I have a calculator I can send you too. There is a lot to look out for, just depends your criteria.

Quote from @Marcus Stokes:

Hello! I'm new to house flipping and feeling a bit apprehensive about moving forward with my first deal. Do any of you have some advice for this initial flip? Any tips or insights would be greatly appreciated!

 I think the uneasiness comes from not having enough reserves/ funds for downpayment and closing. It also could come from not having an experienced partner to help mitigate risk. 

I had the same uneasy feeling thinking about ditching my W2 job to pursue a career in real estate, when the market turned for the worst. I made sure to have at least a year cushion before fully committing to it. Towards the end of the year I was down to my last couple of grand until I had finally seen the results of my prospecting throughout the year. That 1 deal, had pretty much paid for my salary for that year. 

If it wasn't for me having enough savings, I don't think I would be where I am at today. If experience is your concern, you can easily partner up with another experienced investor in your area to help balance the risk out. i

Quote from @Marcus Stokes:

Hello! I'm new to house flipping and feeling a bit apprehensive about moving forward with my first deal. Do any of you have some advice for this initial flip? Any tips or insights would be greatly appreciated!

1. Start by getting familiar with your local market. This means understanding the neighborhoods, pricing trends, and what buyers are looking for. Stick to areas you know well; this familiarity can greatly reduce risk and boost your confidence when making purchasing decisions.

2. Have a clear budget and stick to it. Many new flippers overestimate their renovation budgets. It's a good practice to overestimate costs and underestimate after-repair values (ARV) to keep your expectations realistic. For example, if you're planning a kitchen remodel, get multiple quotes to ensure you have a solid grasp of what it will actually cost.

3. When evaluating potential properties, consider three exit strategies: if you can sell quickly for a profit, hold it as a rental, or take a loss. This gives you flexibility and a clearer understanding of how you’ll proceed based on market changes. Focus on the numbers rather than emotions. If a deal doesn’t meet your criteria, don’t hesitate to walk away.

4. Building a solid team is another crucial factor. This means finding reliable contractors, inspectors, and, if necessary, real estate agents who understand the flipping process. Your team can provide valuable insight and help you avoid costly mistakes down the line.

5. Since you are new, find a partner to go through it first. Have you ever owned property? Have you ever had to maintain a property? I do not recommend someone who has never owned real estate to do a fix and flip as real estate is challenging and cost prohibitive, I recommend if never owning real estate to start with an asset that does not need major repairs. 

@Marcus Stokes

can you start with a live-in flip or house hack instead?