Flipping Houses QuickStart Guide

Elisa Zheng Covington

Description

THE ULTIMATE BEGINNER’S GUIDE TO LEARNING HOW TO FLIP HOUSES – INCLUDES A COMPREHENSIVE ONLINE LIBRARY OF HOUSE FLIPPING TOOLS AND TEMPLATES!
 
What could flipping just one house a year help you accomplish?
 
House flippers are real estate investors who don’t believe in waiting years to turn a profit. For decades, fix-and-flip strategies have been the number one way to capitalize on the fluctuating housing market with minimal investing experience or little to no cash on hand.
 
As a real estate investor, developer, and influencer, author Elisa Zheng Covington, MBA, knows exactly what it takes to find great properties, minimize risk, and turn a profit quickly.
 
Drawn from her extensive experience in profitably fixing and flipping homes in a high-competition market, Flipping Houses QuickStart Guide is packed with actionable insight that applies to nearly any real estate market, regardless of whether that market is up or down.
 
Whether you want to house flip as a side hustle or are starting a new career, you can use the guidance found in this book to buy, fix, and flip your first, fifth, or fiftieth property with less cash, less time, and less effort than you might think!
 
Flipping Houses QuickStart Guide is perfect for:

 
• Current or new homeowners who want to create an additional income stream
 
• Current or new real estate investors looking for a quicker return on investment
 
• Nine-to-five professionals looking for a second career as their own boss
 
• Anyone, even someone with minimal investing experience or cash on hand, who is interested in the financial independence house flipping can provide!
 

 
Flipping Houses QuickStart Guide Explains: 

 
• How to Scout and Analyze Properties – A profitable flip starts with a great property. Learn how to set yourself up for success by starting with properties that have potential and learning how to shop for properties in nearly any market.
 
• How to Fund Your Flips – You can start flipping houses with less cash on hand than you might think. Learn how to find, secure, and use financing to add value to properties.
 
• How to Lock In Returns – Learn how to list, stage, and sell your flips to motivated buyers fast.
 
• How Rewarding House Flipping Can Be – Money aside, successful flips have the potential to improve neighborhoods, increase surrounding property values, and provide a home that individuals, couples, or families can fall in love with.
 

 
You Will Learn: 

 
• House Flipping Fundamentals, Including How to Find, Finance, and Flip Great Properties for Profit
 
• How to Evaluate Properties, Spot Red Flags, Lock In Winning Properties, and Navigate the Real Estate Market
 
• How to Add Value to Properties by Renovating on a Budget and Maximizing Returns
 
• How to Cash Out Your Flip, List Your Property, Entice Motivated Buyers, and Close the Sale How to Reduce Your Tax Liability, Manage and Minimize Risk, Build a Flipping Business, and More!
 

 QuickStart Guides are books for beginners, written by experts.
 
*LIFETIME ACCESS TO FREE HOUSE FLIPPING DIGITAL ASSETS!*
Flipping Houses QuickStart Guide comes with free lifetime access to a comprehensive library of tools and templates to help you on your house flipping journey.
 
Introduction

Chapter 1: The House Flipping Business Model

Chapter 2: Scouting Out Potential Deals

Chapter 3: Analyzing a Deal

Chapter 4: Funding the Flip

Chapter 5: Making an Offer and Buying the House

Chapter 6: Planning the Renovation

Chapter 7: Finding a Contractor

Chapter 8: Getting the House Ready to List

Chapter 9: Use an Agent or Sell it Yourself?

Chapter 10: Selling the Flip

Chapter 11: Looking Toward Your Next Flip

Chapter 12: Establishing a Business Entity

Chapter 13: Tax Implications

Chapter 14: Risks of House Flipping

Chapter 15: Prepare for a Career in House Flipping

Chapter 16: Conclusion

Appendix I

Appendix II

Appendix III

About the Author

About QuickStart Guides

Glossary

References

Index

Sujets

• Selling Homes
• Buying Homes
• Real Estate
• Employabilité, métiers et formations
• General officer
• Economics
• Business
• General

Informations

• Publié par: ClydeBank Media LLC
• Date de parution: 11 juillet 2022
• Nombre de lectures: 0
• EAN13: 9781636100319
• Langue: English
• Poids de l'ouvrage: 3 Mo

Extrait

Contents
INTRODUCTION
House Hacking and Landlording
HGTV and High-Ticket Courses
Side Hustle Turned into a Seven-Figure Career
Myths about House Flipping
How This Book Is Organized

PART I – HOW TO FIND, ANALYZE, AND FUND A DEAL
| 1 | The House Flipping Business Model
The Wholesaling Model
Wholesaling vs. Rehabbing: Pros and Cons
| 2 | Scouting Out Potential Deals
Location, Location, Location
What to Buy
Looking for Deals That Are for Sale
Looking for Off-Market Deals
| 3 | Analyzing a Deal
Determining the After-Repair Value
Estimating Rehab Costs
Other Costs to Understand
Targeting Your Profit
Looking at the Numbers
| 4 | Funding the Flip
How Much Money Do You Need to Flip a House?
How to Secure Financing
| 5 | Making an Offer and Buying the House
Establishing Trust
Coming Up with a Fair and Acceptable Offer
Closing on the House

PART II – TRANSFORMING A HOUSE
| 6 | Planning the Renovation
The Case for Hiring Professionals
Determining the Scope of Work
Designing the Layout and Finishes
The All-Important Walk-Through
Creating a Budget
| 7 | Finding a Contractor
What Type of Contractor Do You Need?
Meeting Contractors
Screening Contractors
Reviewing Contractor Bids
Getting It in Writing
Keeping the Project on Track
| 8 | Getting the House Ready to List
Improve Your Curb Appeal
Cleaner Is Better
Package the Listing
Order Inspections and Make Repairs If Necessary

PART III – FINDING A BUYER AND TURNING A PROFIT
| 9 | Use an Agent or Sell It Yourself?
How a Real Estate Agent Helps You Sell a House
Hiring and Working with an Agent
If You Decide to Sell It Yourself
| 10 | Selling the Flip
When to List Your House
Filling Out Disclosures
Listing
Marketing the Property
Reviewing and Negotiating Offers
Closing the Sale
| 11 | Looking Toward Your Next Flip
Assessing Your Experiences
Building Your Team
There’s No Bad Time to Flip Houses

PART IV – LEGAL AND BUSINESS CONSIDERATIONS
| 12 | Establishing a Business Entity
Dangers of a Sole Proprietorship
The Limited Liability Company Structure
C Corps and S Corps
Deciding Which Entity Is Best for You
Separating Your Personal and Business Finances
| 13 | Tax Implications
Real Estate Investor or Dealer?
The Importance of Deductions
Other Ways to Save on Taxes
Tax Issues with Independent Contractors
Finding Experts to Help
| 14 | Risks of House Flipping
Market Risk
Contractor Problems
Legal Issues
Project Management Risk
| 15 | Prepare for a Career in House Flipping
Educate Yourself
Your Network Is Your Net Worth
Find a Mentor
Start Looking at the Market
Learn How to Analyze a Deal
Learn from the Stars
CONCLUSION
Dream Big, Start Small
Fake It ‘Til You Make It
Take Massive Action to See Results Quickly
Take Calculated Risks
Partner with an Experienced Investor on Your First Deal
Build Your Brand and Protect It Like Your Life
APPENDIX I
APPENDIX II
APPENDIX III
ABOUT THE AUTHOR
ABOUT CLYDEBANK MEDIA
GLOSSARY
REFERENCES
BEFORE YOU START READING, DOWNLOAD YOUR FREE DIGITAL ASSETS!
Introduction
Five years isn’t very long in the grand scheme of things, but the last five years completely changed my life. A half decade ago, I was trapped in a dead-end job with a tech company, working nine to five along with everyone else, and wondering how I could change the course of my life. My job in Silicon Valley was okay, but I wasn’t passionate about it. It was just something I did to earn an income and support my lifestyle. More senior positions at my company didn’t look appealing because the higher pay didn’t seem like proper compensation for how stressful and demanding the jobs appeared to be.
There was also a lingering uncertainty, sadly common in plenty of twenty-first-century jobs, about where the company was headed and how its direction would affect employees. Silicon Valley businesses are notorious for laying off employees, to the point where people joke that if you’ve never been laid off, your career is not complete. Looking back, it seems like everyone around me—including myself—was simply living up to the societal expectation of earning a degree, finding a job, going to work, and getting a salary. It matched Robert Kiyosaki’s description of the “rat race” in his highly successful personal finance book Rich Dad Poor Dad . I was certain that I didn’t want to remain in the rat race for the next 20 or 30 years, but I was unsure how to escape it.
I had gotten interested in real estate investing by this time and dreamed of leaving my job to pursue it full time. I was drawn to the idea of being my own boss and being responsible for my own success instead of showing up to work every day for a company that could fire me tomorrow. But I lacked the confidence or knowledge to follow my dream. So I became a landlord and eventually started flipping houses on the side while hanging on to a job that I didn’t find at all inspiring but that came with a salary and benefits. As I completed my first two flips, I thought constantly about quitting my full-time job but just couldn’t seem to pull the trigger. And then, just before Thanksgiving in 2017, I got laid off.
In hindsight, the layoff was the best thing that could have happened to me, as it freed me up to pursue what I knew I really wanted to do. But at the time it was tough, and I felt that I was at a low point in my life as I realized that for seven years I had spent most of my time and energy at a company that found me disposable. I felt as if I had no control over my own career. I wish I had avoided the humiliation by leaving on my own before I was laid off, but I guess I wasn’t quite ready. Five years later, I am flipping houses full time and can now embrace the fact that my career is firmly in my own hands instead of under someone else’s control. I wake up every morning eager to begin work, and I enjoy nearly every aspect of what I do. Being my own boss also enables me to control my schedule and take time to enjoy my family, friends, and favorite activities.
If you are in a situation that sounds similar to where I was—dissatisfied with your career, feeling like you’re doing things just to keep up with expectations—I want you to know that you have the power to change it. Leaving a job to pursue something on your own is a leap of faith, to be sure. I remember how scary the idea felt and how anxious it made me. Some people with good intentions may try to discourage you from taking the leap, out of concern for your financial security. They’ll say you are going into a risky venture and gambling with all your savings or that you won’t be able to find enough deals to earn a sustainable income—the same things that people told me. We’ll discuss those and other myths of house flipping a little later, but I’m here to tell you that with the right guidance and a lot of hard work, you can overcome the challenges associated with flipping houses and be a success. I spent a lot of money trying to learn the business from the gurus who offered seminars and other trainings, but in hindsight I don’t think I got my money’s worth. This book and other inexpensive sources will provide valuable information to get you started and help you build the confidence you need. Flipping houses isn’t rocket science. It seems complicated and intimidating when you’re just starting out, but you should have faith in yourself and believe that you can do it, because many people have managed to succeed, including myself, who was a total newbie not long ago. My only regret is not starting sooner! Let me tell you a little more about my journey from working a nine-to-five job to becoming a seven-figure house flipper in just a few years.
House Hacking and Landlording
By 2012, I had finally saved enough to purchase my first property, a two-bedroom, two-bathroom loft in a nice part of San Francisco. It was not a smooth or easy purchase, to say the least. The loft was listed as a short sale, and the complex’s homeowner association (HOA) was suing the developer for water damage in the building. There were few banks willing to lend me money to buy this property, but I fell in love with the place, and it was a bargain I couldn’t pass up, because the real estate market was at rock bottom at that time and the property was listed at 20 percent below market value. To make a long story short, I made an offer and was turned down, only to find out a month later that the other offer had fallen through and my offer was accepted. It took six months to close on the property due to the lengthy short sale process, but finally it was mine.
I decided to house hack , which means renting out part of the house while living in the other part. Not wanting to take the chance of renting to someone I didn’t know, I offered one bedroom and bathroom to a friend who was looking for a place to live. That turned out to be a mistake, as she was not nearly as neat as I am, didn’t clean up after herself, and on multiple occasions left the door standing open when neither of us was home. I had to ask her to find another place, meaning I ended up losing both a renter and a friend. It made me realize that being a landlord is not easy, but the rent money helped me pay down the mortgage every month, which allowed me to continue saving a big chunk of my income.
Property values started going up shortly after my purchase, and in 2014, the appreciation on my loft made it possible for me to get a home equity line of credit (HELOC) , a type of loan that uses some of the equity in your home to give you a revolving line of credit. I used the HELOC to purchase a rental property, a one-bedroom condo that my then-boyfriend-now-husband and I spent two months remodeling (see the before and after photos of our kitchen in figure 1). I realized later that doing it on our own was another mistake. We both had full-time jobs and could only wo