[Justin D]

db71 hit it exactly - this is 100% how you get into it.

 

[db71]

Oh yeah and this is not a get rich quick business. It takes years of hard work to get to a comfortable level and while all your friends are out driving new cars you need to be driving a older pickup truck and putting it all back into your projects.

You know how I know this because I did the opposite and thought wow I'm gonna make great money and not work that hard at it I will have guys that do that for me yeah I failed miserably 3-4 times in construction before I got it. Each time was better and the last time it worked out really well and now I just got back into a form of residential construction again. I should have never left.

 

[Exotics]

Thanks for the advice DB71 but I don't really like working for people, I like being independent, but I guess learning the business first hand is what I'll have to do.

Thanks Justin, you're basically spelling out my plan. May I ask, what do you mean by "You can start lowering those costs by brining portions of the work "in-house", but then your overhead increases..."?

 

[Stance]

Flipping houses is a lot cheaper, but are you the one doing the renovations? If not, your profits will be significantly smaller or gone entirely if you have to rely on contractors for all the work. If you watch these shows of guys flipping, they know how and often do much of the work themselves.

 

[Exotics]

If I do decide to flip houses, I will being doing most of the renovation, whatever I can't do, i will hire a subcontractor.

 

[Justin D]

Thanks Justin, you're basically spelling out my plan. May I ask, what do you mean by "You can start lowering those costs by brining portions of the work "in-house", but then your overhead increases..."?

For example: you can subcontract all carpentry work, but you will have charge your client the price of the carpentry plus your fees to manage the work. Or if you have your own carpenters as employees you will have more room to bring the carpentry price of the project down. However you will have much bigger operating costs as you will need to make payroll every week. you can't have a week between projects with no work.

 

[Justin D]

Thanks for the advice DB71 but I don't really like working for people, I like being independent, but I guess learning the business first hand is what I'll have to do.

Unfortunately there's really no other way to learn. You can't learn the actual construction part in a class room. However as I mentioned earlier you can learn a lot of good business practices in the class room.

 

[Arone997tt]

Listen to DB he is giving u great advise...no matter what road you take it will be long and you will need to stay dedicated...always remember your word means more than that contract, that's how u build your rep

 

[Exotics]

In my personal opinion you should go work for a company building houses. Work in the field get out and do it. It might not pay that great or it might be good pay but it will be great experience. I worked construction and then later got a 2 yr degree in construction the degree was quite possibly the biggest waste of time in my life. Seeing something done and then doing it is a million times easier than reading a book and figuring it out.

Find a big custom home builder and go offer your services for free or call it a internship and when you are there pay attention to every detail and overhear every conversation this is the only way you are going to learn.

Make sure if you do this you work for a reputable company no point in learning the wrong way. Once you work a year or so then you can start rehabbing and doing all the work yourself at night and on weekends. While maintaining a day job. Then just grow from there. Sky's the limit.

I think I just might do this, seems like a sure fire way of learning the business and leading to success.

Oh yeah and this is not a get rich quick business. It takes years of hard work to get to a comfortable level and while all your friends are out driving new cars you need to be driving a older pickup truck and putting it all back into your projects.

I have absolutely no problem with this; I'd rather work hard now and play later anyways. Considering this is something I seem to like doing, it won't be that hard to stay focused and determined. Thanks again!

 

[Stance]

If I do decide to flip houses, I will being doing most of the renovation, whatever I can't do, i will hire a subcontractor.

I stumbled upon this. Watch the whole thing.

 

[Justin D]

^--- based on a lot of assumptions and less savvy business people being involved.

BTW buying for $60k and selling for $70k does not make you $10k, even in best case scenarios.

 

[Stance]

If I'm going to make 10,000, I'd rather follow the path of least resistance and just sell it to another investor. Why go through the trouble and additional risk for roughly the same return?

Given that I don't know how to rehab, this method makes the most sense for me, if I were to start flipping houses.

 

[Justin D]

If I'm going to make 10,000, I'd rather follow the path of least resistance and just sell it to another investor. Why go through the trouble and additional risk for roughly the same return?

Given that I don't know how to rehab, this method makes the most sense for me, if I were to start flipping houses.

By the time you cover your expenses the above scenario is unlikely to make you $10k

Also, good luck finding a developer who will pay more than the house just traded to you for. Highly unlikely to find that ideal situation (of course it's not impossible). Most developers know there market, and know what has traded when, and for what. Unless you got some crazy deal, good luck finding that situation. You've also now narrowed your market to developers only. Most buyers want finished products. You should buy planning to do the rehab and if by chance you get lucky in between you take the quick flip.

 

[PLAYDIUM]

We (I'm not day to day) build approx 250 homes a year - I have some personal experience building custom homes as well.

The builder community here in southern ontario is a small small world.

I am also located in Toronto - happy to help steer a young guy in the right direction (if possible).

PM me, if interested

 

[Pushn'lbs]

This thread is a good example of why this forum is so valuable.

 

[Never_Better]

selling to another contractor investor is a method I've seen many times and would also be my method if i was going to flip a home. Not directing towards any particular investor but not all property owners are in business for the sake of providing a solid home to its new owner or tenant. Where i grew up the town was full of slum lord millionaires and no show landlords. They were in it for the money and helping their customers (tenants) have an enjoyable experience was rare. People now a days think anyone who owns property is making bank, not always true.

 

[Exotics]

PLAYDIUM -I can't seem to message you or post on your wall... would love to learn about your personal experiences.

Pushn'lbs - I'm thankful for this forum... it really has taught me a lot. BTW love the name.

 

[Exotics]

Do you think it would be a good idea to register the business now as I work on things such as business plan, getting permits, networking, and details?