Tips for First Time House Flippers
Congressional Capital President, Brian Athey, sits down to discuss his tips for success for first time house flippers.
Good afternoon, everyone. I’m Brian Athey, the President of Congressional Capital, and today we’re going to talk about tips for first time house flippers or those who have done really less than three house flips and are looking for a little bit of advice. My biggest point of emphasis for new house flippers is really to get a great team. What people end up doing is focusing on trying to buy something that might be a little bit overpriced, (try to) drive their construction number down, and somehow (try to make up an) artificial advantage with respect to construction, and that’s just the wrong approach. The right approach is to make your money on the buy (based on the profits you expect from the sale), hire a high quality construction company or do the high quality construction yourself, deliver a great product, and then sell that product for what you were expecting to sell it for or a little bit more money (than initially expected).
You also should (hire) a great architect, (hire) a real estate agent that can help you and really evaluate the back end sales prices, and ideally (hire) someone who can help you select finishes so that the product that your putting on the market is something that people really want, instead of something that is just ordinary. What I am seeing in this (DC area) market is that there is a lot of demand for single-family housing, perhaps more demand than I’ve ever seen. You really need to nail it and put special things into the house. For example, something as simple as an accent wall in the living room, and you can look at some of our product or our borrower’s product for examples of that. Or you can use some lighting in the kitchen or something else that can really make the product stick out from the competition.
So my advice is: get a great team, get a great contractor, get a good architect, and get a very experienced person to sell the house. If you do all those things, and focus on delivering a high-quality product, because that’s really what matters, then you’ll be successful (as a house flipper and developer). So, if you have any questions, please reach out to us at any time.