Fix and Flips with Matt Liss

In today's blog post, we will explore the exciting world of house flipping and the valuable insights shared by Matt Liss, a top 1% real estate agent who began his career flipping houses. Flipping houses involves purchasing properties, renovating them, and then selling them for a profit. Matt's journey from Corporate America to the realm of real estate has provided him with a wealth of knowledge that he graciously shares with us. Let's delve into his experiences, tips, and advice for aspiring house flippers and agents working with flippers.

Matt stumbled into the world of house flipping when his uncle retired from landscape architecture, and he decided to explore his passion for houses. He purchased his first property in Chicago for $60,000, invested $30,000 in renovations, and sold it for a modest profit of $15,000 to $20,000. Although it may not have been a huge financial gain, the learning experience was invaluable.

Fix and Flip

• Understanding Profitability in House Flipping: Matt emphasizes that house flipping is not about striking it rich with massive wins but rather about consistency. Aiming for 10% to 20% profit on flips is a realistic expectation. It's crucial to consider all costs involved, including carrying costs, transaction costs, and potential debt, to accurately gauge the overall profit.
• Design and Functionality: Design and functionality play a pivotal role in the success of a house flip. Matt suggests starting with storyboards for each room, gathering ideas from sources like Pinterest and Instagram, and discussing them with a business partner. This visualization process helps create a cohesive and appealing final product before initiating renovations.
• Planning and Budgeting for Flips: Before buying a property to flip, it's crucial to create a budget for both the purchase and renovation costs. Research comparable properties in the area to ensure potential profitability. Carrying costs and transaction costs should not be overlooked, as they significantly impact the overall profit margin.
• The Role of the House Flipper: House flippers must be actively involved in the project from start to finish, ensuring that the work is carried out as planned and avoiding costly mistakes. Being present during the renovation process is essential for successful outcomes.
• Creativity and Vision: For those with a good eye for design and an understanding of what buyers want, house flipping can be an excellent side hustle. Flipping houses provides a comprehensive understanding of various aspects, from mechanical systems to layout and functionality, making it a rewarding experience.
• Profitability vs. TV Glamorization: Matt cautions against falling for the glamorous portrayals of house flipping on TV shows, where numbers are often exaggerated. Real-world profitability involves a deeper understanding of costs, transaction fees, and the need to remain practical and meticulous.

Working with Flippers: A Lucrative Opportunity for Real Estate Agents

• Multiple Transactions: Flippers typically undertake multiple projects in a year, resulting in numerous real estate transactions. As a real estate agent, partnering with a flipper means access to not just one deal but multiple deals, which can help stabilize and increase your business volume.
• Buy-Sell Synergy: When working with flippers, agents have the unique advantage of handling both the purchase and sale of a property. This buy-sell synergy creates a seamless process and a more comprehensive understanding of the real estate market, enabling agents to better advise their clients.
• Stabilizing Business: Flippers offer agents a more stable flow of business compared to traditional buyers or sellers who might be sporadic in their activities. This steady stream of transactions can help agents maintain a consistent income and build a robust client base.

Flipping houses provided Matt with unique insights into the real estate business, and he has built lasting relationships with clients who started as small house flippers and grew into million-dollar developers. House flipping can be a rewarding endeavor for those who approach it with creativity, careful planning, and a realistic understanding of profitability.

Partnering with house flippers opens up a world of opportunities for real estate agents. The synergy between buying and selling properties, the exposure to multiple transactions, and the chance to learn from the creativity and expertise of flippers can be immensely profitable. Flippers provide a valuable source of consistent business and networking connections, enabling real estate agents to thrive in the competitive market. By embracing the world of house flipping, agents can discover a path to long-term success and increased profitability.