How to Start Flipping Houses as a Beginner

so I made over a hundred thousand dollars flipping my first house at 23 years old and in today's video I'm gonna explain to you guys the process of how I did it step by step so you guys can get out there and start flipping houses

yourself so in January 2022 I ended up buying my first house flip this was a two bedroom one bath 1100 square feet single family

home out in Worcester Massachusetts and as you guys can see the condition was pretty bad and this house needed a full gut renovation now for Flippers finding properties like this is a gold mine but

it's also the hardest task of being a flipper so the first thing you need to do is get out there and find the deal whether that's driving around your city finding a beat up house and knocking on

the door or do what I did and just let friends and families know you're looking for a beat up house to buy and that's how this deal came to me as a referral from a friend of mine who is a licensed

contractor and is now my business partner so he knew the owner for so many years and he was telling the owner he needs to sell this place and find a better place to live and my business

partner was never able to convince the owner to sell so my business partner told me to meet up with the owner and make him an offer so I ended up meeting with the homeowner and I ended up

getting the house under contract for eighty thousand dollars and real quick guys if you guys are getting any sort of value from this video I would really appreciate it if you guys just like this video it's the easiest way to support

this Channel and if you guys have any questions let me know in the comment section below I'm always in there helping you guys out now before you get a house under contract there's two things you need to find out about the

property before you get on the contract first you need to find out the house comparables then the house renovation costs okay so first what are comparables

comparables are finding properties that are very similar to the property that you are comparing it to so I would need to find three properties that have sold

within the last year in a one mile radius of my subject property and see how much they sold for in price now after I found my three comparables and now I'm looking at how much they sold

for so let's say for example I found a house for 290 000 that sold then I found another one for 295 and one for 288 what

I would do is take those three prices that I would average out the price so for my property that I ran comparables for is 290

000 that is how much the house will be worth if we were to fix it up and list it on the market now after you get your comparables or your arv now it's time to

go get your renovation costs now getting your renovation costs may seem tricky especially when you're looking at a property and you have no idea on how much work it needs and how much it's

going to cost but here's an easy way to get it around it you literally just Google your local contract is in the area and have them check out the property and give you a bid on how much

it's going to cost to fully renovate the house so you found your property you got your comparables and you got the renovation costs now it's time to take all this information and plug it into a

secret formula that we Real Estate Investors use when trying to make an offer to a property owner and we call this the 75 percent rule or it's known

as the 70 rule so here's the formula you're going to take your comparable or your after repair value times it by 0.75

minus your renovation cost equals your max allowable offer this is the formula that all house flippers use when trying

to make an offer on a property so now you know how much to offer to a property owner when trying to get a property under contract now when you're getting a property under contract you need to put

a earnest money deposit down and what this is is a deposit of any dollar amount to make the contract legally binding now if you guys want to use the

contracts that I use when getting a house under contract I'll leave it in the description box below it'll be a Google link where you guys can uh download the file edit it and print out

your own contract now after you get your property under contract it's time to get funding for the deal uh if you guys don't know we don't get money from the banks well at least I don't when I flip

properties I do not get money from the banks I get money from a private money lender and what a private money lender is is a investor who lends money to make

a profit private money lenders are the best for flipping houses I paid no money down they didn't check my credit and there was no monthly payments they're way easier to work with then the base

because banks have too many restrictions and finding private money lenders are not hard you're going to want to download the Meetup app or the Eventbrite app and you can find your local real estate meetups there is

always private money lenders at these meetups because these private money lenders are looking to give you money to flip your houses so going to the meetups

are the best places to find investors and private money lenders so after I found my private money lender we ended up closing on the property and we

started renovating the house now I ended up partnering up with a licensed general contractor who is my business partner and we started renovating the house and

it took us six months to complete the renovations as you guys can see the results were crazy literally and night and day difference having the navy blue

on the exterior with the Grays and the whites on the interior really made the house pop and stood out again against the other homes that were on the market and after all Renovations we ended up

spending 85 000 and renovating the house now after we finish renovating the house it's time to get the house on the market and get this baby sold now in situations

like this it is very beneficial to have your realtors license so with me being a realtor or a real estate agent I was able to list this property on the market

myself and save myself over a nine thousand dollars that I would end up paying to another agent if they were to list it on the market and sell it for me

so we ended up listening to property for 290 000 and ended up selling it just a couple weeks later over asking price for 305

000 and after closing we paid off all of our fees and we ended up making over a hundred thousand dollars in profit now flipping houses isn't as sexy as it seems It's a risky business with a lot

of money online line so everything has to be done on time under budget and on point if not you can end up losing a lot of money so having the right team in

place is extremely important you know having your realtor having your lender and having a good Contracting team to work on the property is extremely crucial because trust me you don't want

to lose hundreds of thousands of dollars and have to deal with that with your lender in court hopefully you got a lot of value out this video and uh if you guys enjoyed this video make sure you

guys smash that like button if you guys have any more questions let me know in the comment section below you guys always know I'm in there and I'll catch you guys in the next video subscribe later