By Mike Baird
The more experience I get with real estate training and coaching new flippers, the more I realize that most people’s problem isn’t their first flip…it’s their second. Almost every house flipper I’ve ever met has a similar story for their first flip. They all say something like, “I did a lot of research! I probably passed on a few good deals when I first got started because I didn’t think I was ready. When I found my first flip, though, I knew I was ready, and I had a great experience.”
Unfortunately, when it comes to the second flip, it seems like one of two things happens. New flippers will either get overconfident and over-eager, or they’ll suddenly get a case of home-buying stage fright and feel paralyzed.
In the first case, the novice flipper will feel like they can turn any flip into a great deal, and they’ll jump on the very next property that comes their way, whether it’s a good idea or not. In the second, they’ll find all of the potential problems that can occur with any lead they find. They’ll pass on deal after deal because, deep down, they don’t believe they can repeat the success they had the first time.
Take a Moment to Congratulate Yourself
To avoid either of these circumstances, stop right where you are and take a deep breath. Now pat yourself on the back and congratulate yourself. You’ve successfully flipped your first property, and if you’ve done it once, you can definitely do it again. You’ve gathered and worked with a team of real estate and rehab professionals, and you’ve made a profit. Take a moment and let that sink in before you get to work…
Make a Flipping Checklist
Next, sit down with a pen and paper, and write down all of the steps you took to flip your first house. Write down what did and didn’t work, making notes of what you do and don’t want to repeat next time. Use this list to create your flipping checklist. This will help guide you through the process and stay organized for each of your flips.
Ask Yourself How You Found Your First Flip
Now, look at the beginning of that checklist. How did you find your first flip? And how long did that process take you to find leads and, eventually, a profitable deal? Chances are high that you took longer than you would have liked to find a good lead that resulted in a deal. While you don’t want to get too excited and jump on a bad deal, you do want to find good deals faster. Try widening your search and incorporating different methods, such as:
- Driving for dollars – Take a drive around the neighborhoods where you want to flip and look for signs of abandoned houses or houses for sale by owner. Make a note of the addresses and locate the owners’ current addresses through the local tax assessor’s office.
- Direct mail campaigns – Send out attractive postcards that let recipients know who you are and how you can help homeowners by buying their houses for cash.
- Social media marketing – Get online and get social. Let the world know that you are interested in buying rundown properties and turning them into beautiful, move-in ready homes.
If you continue to collect leads and to follow up with the most promising motivated sellers in your lead funnel, you’ll find a great property to flip in very little time. Before you know it, you’ll have multiple flips in progress at once, and you’ll be consistently and constantly making profits.
Interested in learning more about finding and flipping your second deal, building relationships in the business, and all of the other ins and outs of flipping? Check out one of our Property Bank real estate training seminars near you!