Popularized and somewhat fantasized by TV shows like “Flip This House,” “Hidden Potential,” and “Flipping Vegas,” house flipping is a lucrative real estate investing strategy where investors acquire properties (typically at low prices). Instead of purchasing it to live in, investors hold the property for a short time before putting it back on the market.
During the holding period, the investor may renovate the property by fixing minor repairs and installing new appliances, and then turn around and resell it (flip), to make a lot of money. Typically investors focus on flipping houses by purchasing distressed properties, fixer-upper properties, vacant homes, and pre-foreclosure property at a bargain, as this is the best way to make good profits.
Overall, becoming a property flipper means joining an interesting and exciting sector of the real estate market. However, as is the case with most professions, some real estate investors decide to get a mentor to learn more about house flipping. Below we will discuss some tips on finding a house flipping mentor.
First, Do You Need A Mentor To Be Successful?
No, you don’t necessarily need a mentor to be a house flipper. However, most successful house flippers probably have had a mentor at one point or another in their career. Having someone with experience with the process can substantially lower the learning curve and potentially save you money and time in the long run. In addition to lowering the learning curve, a mentor can motivate you to work harder as well as open your eyes to new income streams and ways to negotiate deals to increase your profit margin.
Times get tough in this profession, and having the right mentor behind you can be the difference between you quitting or your learning how to move past adversity.
So How Do You Find a Mentor?
You can set yourself apart from other aspiring home flippers by following the tips below.
Get Educated About Flipping Properties
No mentor is going to want to work with someone who knows nothing about the industry. As such, by getting yourself educated about the process and at a bare minimum, investment calculations, and industry terms, you can show potential mentors initiative as well as that you legitimately want to become a successful house flipper. Likewise, you should understand the basics of estimating renovation cost and the value of a home after repair (i.e., after repair value).
In other words, show potential mentors that you know how to “do the math” and that you have a fundamental understanding of how to start flipping houses.
If you want to set yourself apart from other newbies in your field, show potential mentors that you are ambitious and not a quitter.
Show that you understand the housing market and that you can take initiative and find good deals. In other words, show them that you know how to find houses and motivated sellers. Start slow and test the waters. Do some marketing to motivated sellers. Begin by going to networking events, industry events, and community events, where you can meet others in the industry and potential sellers.
Overall, successful house flipping is truly about networking and hustling. You will have to network and meet the right people to become a successful house flipper.
Learn Everything You Can About Potential Mentors
Do your homework before you approach anyone about becoming your mentor. Learn about their past, their history in the industry, and have a general understanding of why that person would be an excellent fit to be your mentor.
Show Them What’s In It For Them
ALL successful house flippers want good deals and want to make more money. In other words, for them to mentor you, you will need to show them what’s in it for them. Show potential mentors how they can make more money by working with you and that you can be an asset to them. Start by bringing them some leads on profitable deals. Or maybe consider becoming a wholesaler and wholesaling homes. By doing this, you can learn some things about the industry as well as give investors first dibs on some of the deals you come across.
Overall, while some will argue that you don’t have to waste your time with finding a mentor to be a house flipper, it is highly recommended that you do. Take the time to locate the major home flipping players in your location. As a novice investor, take small steps to show that you have a legitimate interest in the field. Lastly, don’t mistakenly believe that you can become an expert overnight – flipping houses is a constant learning experience and with a mentor on your side, you are guaranteed to gain valuable knowledge.