Home flipping can quickly become one of the best ways to increase wealth in Real Estate. There is definitely a structure that needs to be placed in finding the right property, evaluating the worth, estimating costs and learning how to add enough value to the home to turn a profit.
Of course, the secondary work comes into play when you need to find the right contractors, calculate the scope of work, leave a buffer for delays and determine carrying costs.
Many clients are intrigued by the ability to make money, especially in the short run, but flipping properties may require a push from an expert to guide them.
Real Estate agents have a gold mine of opportunities when it comes to finding home flipping clients. It’s a myth that only wealthy individuals can flip homes. In fact, many people can get started with home flipping without, or with little, money of their own.
Have you heard of PMA = OPM?
Well, it stands for Positive Mental Attitude = Other People’s Money.
Your clients have a few different ways of funding the home flipping project, this can include finding a partner, seeking hard money lenders (which is only a good idea if the flip can be done in a very short period of time as the interest is high), and finally, the third option can be private money lenders.
One the GREATEST aspect of working with a client who is a home flipper is the fact that you can serve as the agent who is buying the property and selling the property once it’s flipped, double dipping your opportunity.
There are two ways you can attract home flipping clients:
1.Utilise Your Database:
As mentioned earlier, many people could benefit from home flipping, but it may require for you to educate your clients a little more to feel comfortable to flip a home.
There are a few ways you can start getting your database to consider the possibility of home flipping. This can be accomplished by setting up an email drip campaign, segmented to particular contacts in your database that you think would be interested in home flipping. You would then need to create an email campaign, that ADucates them on home flipping.
You know, it’s like advertising your home flipping skills while educating them on how it works. The first email can be about the benefits, the potential, timelines and comparing the return on investment of home flipping to stocks.
Your next series of emails should include the introduction of one topic to learn about at a time. For instance, in one email your topic can be about what a cap rate is, how it can be calculated, what a good cap rate would look like (4%-10%). Then you would move on to how to add value to homes to get a higher ROI, understanding the scope of work, finding a good home.
You can break that down to what we at GREL call the Nash Equilibrium of Home Flipping.
There are four scenarios you can have when it comes to home flipping:
- Good location, Bad home condition
- Good location, Good home condition
- Bad location, Bad home condition
- Bad location, Good home condition
Without getting into too much detail, the first two options will almost always be the winner.
Winner 1: You can’t beat the location, and the price of the home may be cheaper because it is in bad condition. You will need to analyse how much it will cost AND how long it will it will take to have this home ready to sell on the market. Remember, you will also have carrying costs, too, so pay attention
Winner 2: Similarly with the second option, having a good location is great, however, you if you are going to do a flip on a home that is in excellent condition you need to consider which upgrades will be significant. You need to be very specific about the upgrades that need to be made to increase the ROI.
All your efforts and knowledge about home flipping shouldn’t just be shard in an email and with your database, which brings me to the second options of attracting home flipping clients.
2. Promote Yourself As THE Home Flipping Specialist In Your Area:
You can use a combination of past clients and also market yourself in your local community to attract quality home flipping leads. To achieve this, you’re going to really have to know the details of home flipping, which can be learned in a few hours.
Over time, you will also build your network of contractors, appraisers, stagers and more to create a money making system. Ideally, your involvement should be to sell and buy flipped homes, however, to really get into this niche you have to understand it.
If you’re looking for the home flipping specialist course, I would recommend the Certified Home Flipping Specialist, which is part of the pro and master plan.
If you’re looking for the FULL investor’s edition, I would DEFINITELY recommend GREL’s Investor Edition program, available on the Master Plan.
Get your 7-day free access now and check out the courses. It would be a great way to promote yourself as a home-flipping specialist when you have the credibility to back that up.