By Mike Baird
When you start flipping houses, whether you realize it or not, you’re starting a real estate business. Even if you still have a full- or part-time job, if you do this right, with each house flip you can get closer and closer to being your own boss and calling the shots as you make a career out of your fix and flip projects. So, how can you create and grow your own business flipping houses? Greg and I have learned a lot along our road to success, and here are a few of the tips I’d give anyone who’s just starting out.
Get the Proper Training—Go to a Real Estate Investment Seminar
Our Property Bank team hosts workshops around the country each year, and Greg and I are up there on stage teaching students because we love flipping, and we want to help others get started. I definitely recommend coming to one of our seminars because we can take you through all of the basics of the real estate business, as well as give you the real insider secrets that have helped us out along the way.
If you aren’t a realtor and you don’t have a lot of experience in real estate, you can learn a lot from these seminars, and you can make an informed decision about whether or not you should pursue getting your realtor’s license as you build your business.
And while you’ll get a lot of knowledge about the market, working in real estate, and flipping in general, that’s not all you get from attending seminars like ours. You’ll also get a chance to network with other investors and other people who work in real estate. You never know whom you’ll run into or how building a relationship with them will help you in the future.
Don’t Get Emotional About Flips
As much as Greg and I love flipping and turning ugly ducks into swans, we never fall in love with our flips.
When you get emotionally invested in a property that you think is going to be an amazing deal, you can really mess yourself up, businesswise. You can let your bids go through the roof at an auction, or you can convince yourself that tripling your budget for rehabs will pay for itself when you sell.
Greg and I decide our budget carefully for every flip we do. Sometimes we do go over budget but we’re very careful and very decisive about how and where we spend extra money. We’re always doing the math and ensuring any expenditure will make us more money on the resale. Occasionally, that doesn’t happen and we have to cut our losses, but we’re always making our decisions based on the cold hard numbers, not based on our emotions about the houses.
Believe in Your Business
More important than anything else, though, is that you have to really believe in yourself and your real estate business. You’re going to have moments of doubt, but stay as positive as possible. Keep perspective as you fix and flip properties. Every time you make a profit, no matter how small, it’s a win. And every house flip will teach you lessons and prepare you for future flips and bigger investments. The more you put into this and the more you believe in yourself, the more you’ll get out of it and the more success you’ll achieve.