How To Flip A House With No Experience

How To Flip A House With No Experience: A First-Timer's Guide

flipping houses real estate business real estate investing strategies Apr 30, 2024

Learning how to flip a house with no experience sounds like an impossible task. I can assure you, however, that understanding how to flip a house for the first time doesn’t require years of experience, a good credit score, or an expensive diploma—or anything like that.

In fact, learning how to flip a house with no experience is as simple as following these steps:

*Before we begin our guide, we also invite you to view our video on How To FLIP A HOUSE For Beginners (Step-by-Step)Host and CEO of Real Estate Skills, Alex Martinez, & Stan Gendlin share how to flip a house from start to finish as a beginner! 

Learning how to flip houses for a living may seem like a daunting task reserved for seasoned professionals, but the reality is quite the opposite. Contrary to popular belief, house flipping is not an exclusive investment opportunity limited to those with prior experience. Anyone with the right guidance, determination, and willingness to put in the effort can master this lucrative strategy. 

Since we believe everyone can learn how to flip houses with no experience, we created this flipping houses 101 guide to dispel the myth that rehabbing is only for the “professionals.” We'll explore the steps, strategies, and insider tips on how to flip houses for a living, making this lucrative venture accessible to all, regardless of experience.

What Does It Mean To Flip A House? 

House flipping, alternatively dubbed "fix and flipping" or "rehabbing," is a real estate investment strategy where an individual purchases a property, renovates or improves it, and then sells it for a profit. It's a dynamic process involving strategic investments in distressed or undervalued properties, followed by meticulous renovations to increase market value. 

While the prospect of flipping houses may seem intricate, especially for those new to the real estate game, the truth is that anyone can learn the ropes and excel, even without prior experience. This article will teach you how to flip a house for the first time, breaking down the flipping houses meaning into more digestible steps and democratizing this lucrative venture.

By the end, everyone will realize that getting into flipping houses with no experience is possible. Moreover, you have all the necessary information to begin right at your fingertips!

10 Steps To Flip A House With No Experience 

Now, the burning question, how do you flip houses? 

Learning how to flip houses with no experience is not an impossible challenge; instead, it's a rewarding opportunity awaiting those willing to learn.

Let Real Estate Skills guide you with the best way to flip houses for first-timers.

By following the ten steps outlined below, aspiring investors can confidently take on the real estate market, from property acquisition to successful resale, and embark on a lucrative journey:

  1. Consult A House-Flipping Mentor
  2. Evaluate Your Skills, Commitment & Time
  3. Research Your Market
  4. Assemble Your Team
  5. Choose The Right Property To Purchase
  6. Find & Secure Your Funding
  7. Buy Within Your Budget
  8. Rehabbing, Renovations & Additions
  9. Rent For Passive Income
  10. Resell The Property For Profit

steps to flipping a house

Consult A House-Flipping Mentor

The first step to flipping a house begins with education.

The most effective entry point into the industry is securing the guidance of an experienced mentor. Collaborating with someone who has already succeeded in the field is the swiftest way to comprehend the industry and how it works.

Beyond the knowledge they offer, a mentor serves as a crucial source of inspiration, instilling the confidence needed to take decisive actions and make informed investments. This relationship accelerates the learning curve and minimizes risks, significantly enhancing the chances of success.

So, what does it mean to flip a house? It means learning from those who have done it before. Enlisting the help of a mentor is the fastest way to learn how to flip a house with no experience.

how to get into flipping houses

Evaluate Your Skills, Commitment, & Time

Once under the guidance of a mentor, the crucial second step is introspection. It's imperative to assess your skills, commitment, and available time objectively.

Learning how to start flipping houses also begins with self-evaluation. This self-evaluation is pivotal in understanding your capabilities and ensuring alignment with the significant commitment that flipping houses demand. 

Taking an unbiased look at yourself allows for a realistic assessment of the challenges ahead, preparing you mentally and strategically for the intricate process of property flipping. Armed with this self-awareness, you can confidently navigate the market, making the best decisions and increasing your chances of success.

*Sign Up For Our Free Training & Learn: How To Flip Houses & Wholesale Real Estate From The MLS...

 how start flipping houses

Research Your Market

The next step to learning how to flip houses as a beginner involves thorough research of the real estate market you intend to invest in. After all, learning how to flip houses for the first time should start with a little homework. From home values to demand, scrutinizing every aspect is crucial to assessing the viability of your investment.

Adhering to the timeless rule of real estate—location, location, location—you must familiarize yourself with the intricacies of the market. This in-depth understanding empowers you to identify opportunities and pitfalls, ensuring your investments are strategically positioned to realize worthwhile profits. By immersing yourself in the local market fundamentals, you pave the path of least resistance, ultimately maximizing your chances of a lucrative venture.

Read Also: 5 Best Places & Cities To Flip Houses In 2024

how to flip houses for beginners

Assemble Your Team

The next step in learning how to buy and flip houses with no experience is assembling a proficient team to streamline the process. While solo endeavors are feasible initially, recruiting an experienced team becomes advisable for sustained efficiency. Starting with an assistant for administrative tasks, the team can expand to include lawyers, contractors, real estate agents, and other industry professionals as your projects grow. 

Delegating responsibilities allows investors to focus on profit-generating tasks, ensuring a smoother and more strategic approach to property flipping. By surrounding yourself with a capable team, you not only alleviate the workload but also tap into diverse expertise, significantly increasing the likelihood of a profitable rehab with the right upgrades.

Read Also: House Flipping Jobs: How To Start Your Career In 8 Steps

learn how to flip houses

Choose The Right Property To Purchase

After establishing a solid business foundation and assembling a proficient team, the next critical step in successful house flipping is finding the right property. However, this isn't a hasty decision; investors must target houses where the numbers align for a profitable venture. Two key metrics come into play here: After-Repair Value (ARV) and the 70% rule. 

ARV estimates the property's value after renovations, providing insight into potential profits. The 70% rule suggests that investors shouldn't pay more than 70% of the ARV, factoring in the purchase price and renovation costs. Both metrics help determine the price investors can spend on a deal and still make profits.

Assessing potential properties against these standards is essential, ensuring the financials make sense for a profitable outcome. Moreover, selecting a house before financing is critical, allowing investors to align their financial strategies with the specific property in mind. This proactive approach streamlines the financing process, setting the stage for a worthwhile deal.

Read Also: Flipping A House Checklist: 10 Essential Steps For Rehabbing

how do you get into flipping houses

Find & Secure Your Funding

Securing funding is the next step in house flipping, whether you need a down payment, no money down, or the whole purchase price. Savvy investors turn to alternative real estate financing, with private and hard money lenders emerging as preferred sources. Private lenders are individuals willing to invest their capital, while hard money lenders are institutions providing short-term, asset-based loans.

Though these options carry higher interest rates, their focus on asset-based lending and short loan terms aligns with the fast-paced nature of house flipping.

Convincing these lenders to invest in your flip requires a compelling case, especially with no prior experience. Crafting a detailed scope of work is paramount—outlining the entire process, associated expenses, and potential profits. This comprehensive plan serves as a roadmap, demonstrating your understanding of the project and mitigating the perceived risk for lenders.

While the process may seem daunting for newcomers, a well-prepared proposal significantly increases the likelihood of securing funding from private or hard money lenders, setting the financial foundation for your flip.

To be clear, private and hard money lenders are not the only sources of income to flip deals. Whether buying a rental property or a first house with a full-time flipping business, there are several options: home equity line of credit (HELOCs), joint ventures, crowdsourcing, traditional mortgages, and more. 

Read Also: Fix & Flip Loans: A Beginner's Guide To Funding A House Flip

start flipping houses

Buy Within Your Budget

With a budget, it's time to make informed offers backed by market data. This stage benefits from collaborating with motivated sellers, particularly those facing foreclosure or financial strain. Aligning real estate investor budgets with the urgency of motivated sellers often creates a mutually beneficial scenario.

Investors secure properties within budget due to the sellers' need for a swift sale, while sellers, in turn, may avoid bankruptcy. This synergy transforms the negotiation process into a potential win-win, emphasizing the importance of strategic partnerships.

Read Also: Is Flipping Houses Worth It? Property Flipping Pros & Cons Explained

how to become a house flipper

Rehabbing, Renovations & Additions

After acquiring the investment property, the next step is making strategic renovations. While the goal is an appealing end product, spending within limits is crucial. A prudent approach involves making the house slightly more attractive than comparable properties.

This slight edge ensures the fixer-upper stands out in the market without exceeding the budget. By adhering to this rule of thumb, investors create an enticing product that captures potential home buyers' attention, increasing the likelihood of a bidding war and higher sales prices.

Read Also: Rehabbing A House: The Beginner’s Guide To House Flipping

how to flip properties

Rent For Passive Income

After bringing the house to its desired condition, investors can generate passive income by renting it out. This strategy involves finding suitable tenants, setting a competitive rental rate, and managing the property efficiently. Renting offers a steady cash flow, providing a reliable source of income while allowing the property to appreciate over time. 

This approach contrasts with immediate selling, offering long-term financial benefits. Renting also provides investors with potential tax advantages and flexibility—allowing them to adapt to market conditions. 

Additionally, in a rising real estate market, holding onto the property allows for increased value, maximizing returns when the time is right for a profitable sale. Choosing to rent offers investors a balanced blend of immediate income and long-term wealth-building, making it a strategic move in the dynamic realm of real estate investment.

Read Also: How To Start A Rental Property Business: A Step-By-Step Guide 

how do you flip houses

Resell The Property For Profit

Once the house reaches its desired condition, investors can opt for a profitable resale. Selling involves strategically marketing the property, setting an attractive listing price, and negotiating with potential buyers. 

Unlike renting, selling provides a lump-sum profit, making it an appealing option for those seeking immediate returns. The benefits of selling include quick liquidity, enabling investors to reinvest in new opportunities or diversify their portfolios. It also eliminates property management responsibilities, offering a more hands-off approach. 

Selling is advantageous when market conditions favor a lucrative sale, allowing investors to capitalize on property appreciation. While renting provides steady income, selling offers a quicker return on investment, making it a preferred choice for those prioritizing liquidity and agile investment strategies.

Read Also: Flipping Houses Salary: How Much Do House Flippers Make?

Expert Tips To Flip A House For The First Time 

Learning how to flip a house without experience becomes much more manageable when given some direction. Listening to individuals who have successfully invested and flipped properties provides valuable insights and practical guidance.

Below, we've curated expert tips to serve as a foundational resource for those venturing into the dynamic world of house flipping without prior experience.

Read Also: 10 Best House Flipping Shows & Where To Watch Them

Build A Real Estate Network

Learning how to flip a house for the first time isn’t as hard as many assume. Those with the right network can source information from trusted friends and industry professionals. As a result, we advise everyone learning how to flip a house with no experience to build a real estate network. 

For several reasons, building and maintaining a real estate network is crucial for new investors. Firstly, a strong network provides access to valuable resources, information, and potential investment opportunities.

It allows new investors to tap into the knowledge and experience of seasoned professionals, gaining insights that can be instrumental in making informed decisions. Networking also facilitates collaboration, enabling investors to form partnerships, share expertise, and navigate challenges collectively. 

To build and maintain a robust real estate network, new investors should attend industry events, join online forums and social media groups, participate in local real estate clubs, and seek mentorship from experienced individuals.

Consistent engagement, genuine relationship-building, and a willingness to assist others in the network are crucial elements in establishing a lasting and mutually beneficial real estate community.

Read Also: 11 Best Platforms For Your Real Estate Social Network

How To Find The Right Property

Remember, combining multiple strategies and staying persistent is the key to finding fix-and-flip deals, especially in competitive real estate markets.

Here’s a list of the most common ways for investors, new and experienced, to find deals to flip:

  • Real Estate Auctions: Many distressed properties are auctioned off, providing a potential treasure trove for fix-and-flip opportunities. Participate in local foreclosure auctions or online platforms to discover potentially lower-priced properties.
  • Networking With Wholesalers: Connect with real estate wholesalers who find distressed properties for a living. These individuals often identify off-market deals and can be valuable sources for investors looking to flip houses.
  • Direct Marketing: Implement targeted marketing strategies, such as direct mail campaigns or digital marketing, to reach homeowners facing foreclosure or those looking to sell quickly. This proactive approach can unearth motivated sellers and off-market deals.
  • MLS (Multiple Listing Service): While more traditional, the MLS can still be a valuable resource. Work closely with a real estate agent to gain access to the MLS database, allowing you to identify potential fix-and-flip opportunities listed on the market.
  • Driving For Dollars: Physically explore neighborhoods, looking for distressed or vacant properties. Driving for dollars can uncover opportunities that may not be immediately apparent through online searches.
  • Real Estate Wholesaler Websites: Utilize online platforms specifically designed for real estate wholesalers. These websites often list off-market properties and can be a convenient way to discover potential fix-and-flip deals.
  • Attending Real Estate Networking Events: Attend local real estate networking events, where you can connect with other investors and real estate professionals and potentially discover off-market opportunities through word of mouth.
  • Social Media & Online Forums: Engage in real estate communities on platforms like Facebook, LinkedIn, or specialized forums. Discussing your intentions and networking with other investors might lead to valuable tips on potential fix-and-flip deals.
  • Visit The Local Courthouse: Distressed properties are public record. A simple trip to your local courthouse may identify distressed homeowners and their contact information. 
  • Local Government Auctions: Check for properties seized by local governments due to tax defaults. These auctions can present opportunities for investors, and the information is often publicly available.

Read Also: 10 Best House Flipping Software & Apps For Investors

Consider Off-Market Properties

First-time house flippers often find success in off-market properties, as they present less competition and the potential for discounts. Unlike properties listed on the open market, off-market deals can offer better negotiation opportunities, allowing investors to secure properties at more favorable terms.

This strategic approach minimizes the impact of competition, giving newcomers an advantage when flipping a house for the first time.

Read Also: How To Find Off-Market Properties: 10 Best Ways For Investors

How To Find The Right Lender

Exploring various lending options is essential for new real estate rehabbers seeking financing. Traditional banks may be stringent, so consider alternative routes like private money lenders or hard money loans known for accommodating rehab projects. 

Network within the real estate community to discover lenders with experience in financing flips, as they are more likely to understand the unique dynamics of your venture.

Prepare a comprehensive business plan detailing your project, including the scope of work, budget, and potential returns; this showcases your commitment and expertise and provides lenders with a clear understanding of the investment's viability.

Be transparent about your limited experience, emphasizing your dedication to learning and leveraging mentorship. Building a solid relationship with a lender based on trust and transparency is vital to securing financing for your initial real estate rehab.

Read Also: Private Money Lending: How It Works & How To Become A Lender

Consider Having A Registered Business

For several reasons, registering a business, such as an LLC, is crucial for new house flippers. 

Firstly, it provides a legal and financial separation between personal and business assets, shielding personal wealth in case of unforeseen challenges. Secondly, having a registered business enhances credibility with potential lenders, sellers, and partners, fostering trust and facilitating smoother transactions. Additionally, it offers tax advantages and allows for more straightforward accounting, making it easier to track expenses and deductions.

Read Also: How To Start A House-Flipping Business: Plan Your Success In 10 Steps

First-Time House Flipper FAQs 

To make learning how to flip houses for the first time more manageable, we've compiled a list of the most frequently asked questions (FAQs) about the exit strategy. This curated resource addresses common queries beginners may have, offering valuable insights and guidance on various aspects of flipping a house. 

How Much Money Should You Start With To Flip A House? 

Thanks to alternative financing options, you don't need your own money to start flipping a house. However, having a safety net is advisable for new investors. While it's possible to flip with minimal personal funds, having extra cash set aside is wise to account for unforeseen circumstances or unexpected expenses that may arise during the house-flipping process.

Can You Flip Houses With No Money? 

Flipping houses with no money is possible through alternative financing options like hard and private lenders.

While personal funds may not be directly used, securing financial support from these sources is crucial. Investors leverage the capital provided by these lenders to purchase and renovate properties, emphasizing the importance of exploring alternative financing avenues to initiate and sustain a successful house-flipping venture with minimal personal capital.

Read Also: How To Flip Houses With $10k: 6 Best Strategies In 2024

Do You Need A Real Estate License To Flip Houses? 

Flipping houses does not require a real estate license. Unlike real estate agents and Realtors involved in property transactions, house flippers buy, renovate, and sell properties for profit, engaging in a distinct aspect of real estate that does not require licensing.

It should be noted, however, that some of the general contractor work done on rehabs may require a different type of licensing, not to be confused with a real estate license.

Read Also: Do You Need A Real Estate License To Flip Houses?

How Long Will It Take To Flip A House? 

The timeline for flipping a house varies for new investors. While seasoned investors may complete projects in weeks to months, the learning curve for newcomers can draw out the process. New investors can anticipate a timeframe ranging from a few months to years to rehab a home, contingent on factors like project scale, unforeseen complications, and personal experience.

What Is The 70% Rule In House Flipping?

The 70% rule in real estate is a guiding principle for investors when determining the maximum purchase price of a property upfront. According to this rule, investors should not pay more than 70% of the property's after-repair value, subtracting the anticipated repair costs.

This strategy ensures a sufficient profit margin for the investor, accounting for renovation expenses while aiming for a profitable resale.

Read Also:  What Is The 70% Rule In House Flipping?

How Much Profit Can I Expect To Make Flipping Houses? 

The profit investors can expect to make flipping houses varies from person to person. More experienced investors, for example, can typically increase margins, work more efficiently, and turn flip projects over faster than their less experienced counterparts. On the other hand, Those who have learned to flip a house with no experience may take longer on each deal, limiting their annual upside.

Despite the differences in experience, data from ATTOM Data Solutions suggests the average flip can generate enough money for anyone interested in building wealth— to the tune of about $70,000 in average profits. 

According to the latest Home Flipping Report, “The median $305,000 resale price of homes flipped nationwide in the third quarter of 2023 generated a gross profit of $70,000 above the median investor purchase price of $235,000. That resulted in a typical 29.8 percent profit margin in the third quarter of 2023, up from 29 percent in the second quarter of this year and 27 percent in the third quarter of last year.”

Profit margins aren’t quite where they were before the pandemic, but they have been steadily rising for at least a few quarters. If the housing market continues on its current path, there’s no reason to think profits can’t increase moving forward. As a result, now is a great time to learn how to flip a house for the first time.

Read Also: Is Flipping Houses Profitable? Statistics, Trends, & Forecasts

Final Thoughts On How To Flip A House With No Experience 

Learning how to flip a house with no experience can be intimidating. Fortunately, the process doesn’t need to prevent anyone from taking the challenge head-on. While there are many ways to approach the flipping process, all of them can be broken down step by step. Flipping a house one step at a time is much more manageable, and there’s no reason someone with no experience can’t do it by following the abovementioned steps. With the help of this guide, anyone can learn how to flip houses with no experience.

Ready to take the leap towards financial freedom and escape the constraints of the antiquated 9-5 routine? Look no further. Contact Real Estate Skills today and unlock the door to a world of opportunities in the real estate industry. Whether you're eager to explore the lucrative field of wholesaling or rehabbing, our comprehensive courses and expert guidance will set you on the path to success.

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