STEP 1 DO YOUR HOMEWORK
Nobody—and I mean nobody—should throw their hat into the house flipping ring without having educated themselves first. You’ve started that journey with this article! You needn’t be an expert by the time you start investing but learning the ins and outs of the industry will set you up for optimal success. Remember: there is no better foundation to a house flipping business than a sound education. STEP 2 ASSEMBLE THE RIGHT TEAM Real estate is a people business. Always has been, always will be. It’s less about properties and more about relationships. Therefore, you can’t expect to make it as a real estate professional without the right supporting cast. If you intend to be a solo investor, the usual rule applies: treat others in the industry how they deserve to be treated. This will pay dividends in the future. If you are going to hire a team, make sure they are a great fit for your goals and bring something new to the table. It’s impossible to start flipping houses without funding. Without capital, there’s no reason to believe you’ll ever be able to land a deal. As a result, you should establish relationships with the right lenders before you even start investing in real estate. Here’s where the “people business” part becomes crucial—start building relationships with a lender now, even before you’re found your first property. At InstaLend there’s nothing we love more than working with investors at the earliest stages of their real estate dreams to figure out what’s possible. These are the kinds of relationships that can make all the difference as you’re getting started. You’d be surprised how many investors we meet who don’t have a clear end goal in mind. What do you want to achieve by the time it’s all over? How much of your life are you willing to invest in success? How will you know when you’ve reached it? The answers to these questions will give you great insight on how to proceed. STEP 3 LINE UP FINANCING STEP 4 IDENTIFY YOUR ENDGAME Learn one segment and learn it well. Become the best in your area. And then build on that success. There’s an old proverb that says “If you chase two rabbits, you won’t catch either one.” Take that lesson to heart as you begin.
Flipping takes time, patience, and capital. The rewards are time, capital, and the flexibility to live life as you choose.
SaurabhShah, Co-founder of InstaLend
THE BEST KEPT SECRETS OF SUCCESSFULHOUSE FLIPPERS
The greats all make it seem easy—one amazing deal after another. What’s their secret? Having worked on and observed hundreds of these deals, here’s what we at InstaLend have found that all good investors do: THEY PRIORITIZE RELATIONSHIPS OVER MONEY: Remem- ber the part about real estate being more about people than about properties? Who you know is unequivocally more valuable than any amount of money, and today’s greatest investors know that. All the money in the world won’t do you any good if you can’t foster healthy relationships with others in the indus- try. That’s why the best investors spend time on their rela- tionships… even more time than they do on their deals. THEY OFFER A GENUINE HELPING HAND: Nobody wants to work with someone they don’t respect or trust, and homeowners are no exception. Consequently, homeown- ers are more willing to work with house flippers who gen - uinely lend a helping hand. If you take advantage of people, your reputation will pre- cede you (and you’ll become a loathsome person in gen- eral). If you get into flipping to help people find mutually beneficial deals… well, that reputation will precede you. And you’ll also be able to sleep at night. THEY NEVER STOP NETWORKING: Are you picking up on the theme here? Relationships are everything. The best investors never stop expanding their contacts list. They know everyone is a potential source of insight or a hot tip. You never know who will be the catalyst for your next deal.
INVESTOR REV I EW : : 3
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