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In this episode, Dave Debeau delves into the intricacies of real Estate investing with guest expert Jon Schoeller. Schoeller, an accomplished real estate investor, shares his firsthand experience in the flipping business, detailing the highs, lows, and everything in between.
Schoeller begins by retracing his steps on how he ventured into the real Estate flipping business. He emphasizes the commitment, knowledge, and perseverance required to thrive in this competitive industry.
“Real estate flipping isn’t just about buying low and selling high; it encompasses a wide array of aspects like finding the right property, handling renovations, negotiating deals, and even managing potential pitfalls,” states Schoeller.
The conversation then transitions into the actual process of real estate flipping. Schoeller breaks down the process into simple, digestible steps, ensuring that beginners in the field can understand the nuances.
Understanding the Impact of COVID-19 on Real Estate Investments
In a riveting conversation between Dave Debeau and Jon Schoeller, various intriguing insights about the nuances of ‘flipping,’ the impact of COVID-19 on real estate investments, and much more came to light. Particular emphasis was laid on how the global pandemic has steered the dynamics of real estate investments.
According to Jon Schoeller, the pandemic has added a unique set of hurdles for real estate investors. He put forth that the investors have had to adapt and strategize to tackle unprecedented challenges triggered by COVID-19.
- Safety measures: Schoeller underlined that safety has been paramount. Sometimes, investors must implement stringent site safety measures, leading to additional unplanned costs.
- Market uncertainties: There has been considerable uncertainty from market fluctuations caused by a stalled economy and health crisis. Investors had to factor these unpredictable elements into their plans, said Jon.
Overall, Jon Schoeller emphasized the importance of resilience and adaptability to navigate these challenging times successfully. The impact of COVID-19 on real estate investments has been significant, but it has also provided investors with opportunities to innovate, adapt, and rise to the occasion.
But first, if you want financing for your next investment and want to know what type of collateral may be involved, click the link below for a free strategy call with our mortgage team at LendCity to discuss your specific situation.
The Basics of Real Estate Flipping: What You Need to Know
In the podcast conversation, Jon Schoeller highlighted some fundamental principles of real estate flipping. These principles are integral for anyone venturing into the real Estate flipping industry.
Real Estate flipping, as explained by Jon, involves buying properties at a lower price, improving them through repairs and renovation, and then selling them at a higher price. This process might sound simple but it requires careful planning, adequate knowledge, and a keen eye for detail.
Also, a pivotal point that Schoeller brought up is the importance of thorough market research before deciding on a property. Understanding the local real estate market, knowing the right time to buy or sell, and estimating the expenses for renovation accurately can significantly impact the success of a flip.
An in-depth understanding of the financial implications is also crucial. As Jon Schoeller explains, profitable flipping requires securing the right kind of financing, accurately estimating costs, and knowing the value of the final product. Punctual repayment of loans and careful cash flow management are integral to ensuring that a flip does not become a financial burden.
Another fundamental principle Jon stressed is the significance of having a competent team and networking. Building relationships with reliable contractors and handy workers while forging connections within the real estate community can put you one step ahead in flipping success.
Finally, Schoeller stresses the importance of effective risk management. Real Estate flipping, like any other investment, is not without risks. Countering these risks requires a well-developed strategy, contingency planning, and readiness to cope with unexpected issues.
Carefully understanding these principles can set the foundation for a successful real estate flipping career. As Dave Debeau and Jon Schoeller traverse the complexities of flipping in the remainder of this podcast, remember these basics to understand the flipping process comprehensively.
Key Factors to Consider Before Embarking on a Real Estate Flip
The thrill of profit drives many to test out the flipping waters of real Estate. However, notable real estate investor Jon Schoeller suggests taking a step back and considering some fundamental points before plunging headfirst into this venture.
Recognizing the Time Commitment
According to Schoeller, the first consideration should be how much time you can dedicate to a flip. It’s not about merely buying and reselling a property. Time is needed for planning, renovations, and even facing unexpected obstacles.
Understanding the Financial Aspect
Jon Schoeller points out the importance of having a firm grasp of the financial aspects of flipping. These can include purchasing the property, renovation expenses, holding costs, and the potential return on investment. A detailed understanding of these elements can differentiate between a successful flip and a financial flop.
The Importance of Location
Choosing the right location for a property flip is like hitting a bull’s eye in darts. It is vital. A property in a poor location may not sell, irrespective of how good it looks post-renovation. Schoeller suggests doing thorough market research before purchasing.
Building the Right Team
Finally, every successful flip needs a good team, from architects and contractors to lawyers and real estate agents. Schoeller emphasizes that building a team of experienced professionals can help guide and ease the often-turbulent flipping process.
Ultimately, as Dave Debeau, the host, summarizes, the key to flipping success lies less in luck and more in careful planning, wise decision-making, and patience.
Finding the Right Property: Tips and Strategies from Jon Schoeller
Jon Schoeller, a real estate expert, offered some valuable tips on finding the perfect property for flipping during his chat with Dave Debeau. Aceller, the key to success in his real Estate converting business is picking the right property.
Finding the Right Location
Location is of paramount importance when investing in real Estate. Schoeller emphasized that investors should seek properties in desirable or up-and-coming areas. Such locations typically prove beneficial in the long run.
Understanding Market Trends
Market trends are another crucial aspect to consider. Schoeller advised stuttering the real estate market thoroughly. Recognizing patterns and predicting trends can be vital to a successful flip.
Knowing the Cost
Knowing the cost is another tip from Schoeller. Determining the price of repairs and renovations, alongside the purchase price of the property, is necessary for a profitable flip.
Assessing the Property
Lastly, but significantly, Jon Schoeller suggests assessing the property thoroughly. He stressed the need to inspect every aspect of the property to flag potential expensive repairs like structural damages or outdated electrical systems.
In conclusion, Jon Schoeller emphasized that the path to a successful real estate flip is not easy, but with the right strategies, it’s entirely possible.
The Challenges of Flipping Real Estate Amidst a Global Pandemic
Entering into real Estate amidst a global pandemic like COVID-19 presents a unique set of challenges. As Dave Debeau, the show’s host, and guest Jon Schoeller discuss, these obstacles can be considerable but not insurmountable with the right strategies and perspectives.
Tackling Market Instability
One of the notable hurdles is the market instability brought about by the pandemic. In the words of Jon Schoeller, “It’s a rollercoaster that tests your adaptability to the core.” One can navigate this unsteady terrain by keeping updated with the latest market trends and employing prudent investment practices.
Managing Supply Chain Interruptions
Another challenge is the disruption of supply chains for building materials, causing both the timelines and costs of flips to be unpredictable. Jon Schoeller emphasizes the importance of having a well-detailed contingency plan in these scenarios. He says, “Expect the unexpected and plan for it.”
Overcoming Financing Difficulties
Obtaining financing for flips has also become more difficult during the pandemic, with lenders becoming more wary of potential risks. Jon Schoeller advises, “Keep your financial records clean and be prepared to show proof of income stability even in challenging times.” Lining up multiple potential funding sources can also be a viable strategy.
Juggling Remote Work Challenges
Lastly, managing real Estate flips while working remotely can be a significant obstacle. Jon points out that taking advantage of modern technology for virtual meetings, digital contracts, and remote property tours can make a substantial difference in overcoming this hurdle.
In conclusion, while real Estate flipping during a COVID-19 climate is challenging, it’s certainly not impossible. Jon Schoeller rightly states, “It’s all about being adaptable, being prepared, and having the right mindset.”
Common Mistakes to Avoid: Lessons from Jon Schoeller
Jon Schoeller has been in the real estate business long enough to learn from his experiences and observe others’. In his chat with Dave Debeau, he emphasized the importance of success in the real estate flipping business. Herein, we highlight some of the common pitfalls that Jon believes must be avoided:
- Underestimating Costs: One common mistake Jon revealed is the underestimation of costs. The expenses of a real estate flip often extend beyond the initial property price. Many unplanned costs can increase, from repair and refurbishment to taxes, utilities, and other charges, creating a financial burden.
- Ignoring the Market: Foolhardy decisions to flip properties, irrespective of market conditions, can lead to significant losses. It is critical to understand the market and make informed decisions. Jon reiterated this by explaining how market conditions changed during COVID-19 and affected real estate activities.
- Lack of Planning: Jon Schoeller stressed the significance of having a well-thought-out plan before purchasing a property for flipping. According to Jon, lack of planning and foresight can lead to an elongated flipping process and considerably reduce profits.
- Ignoring Important Areas: In the rush to complete the project, critical areas like the property’s roof, foundation, or plumbing may be overlooked. Jon pointed out that neglecting these areas can affect the property’s value and make selling difficult.
- Rushing to Sell: Patience is vital in this business, Jon reminded listeners. Running to sell a property once it’s ready may lead to lower profit margins. He advocated for waiting for the right offer.
Jon’s experiences and advice provide invaluable insights for anyone venturing into real estate flipping. It’s important to heed these warnings and prepare diligently to evade these common pitfalls.
Conclusion: Mastering the Art of Real Estate Flips with Jon Schoeller
In the concluding discussion with Jon Schoeller, Dave DeBeau contemplates the lessons gleaned from their conversation about real Estate flipping amidst the turbulent pandemic times. Here are some key takeaways from Jon that could help a novice or seasoned investor navigate this terrain:
- Resilience: The ability to roll with the punches and adapt to a rapidly changing environment is crucial. This is not just applicable to real estate flipping but to life in general.
- Knowledge: A well-rounded understanding of the local property market conditions, trends, and potential risks. This uniquely positions you to make informed decisions.
- Critical Analysis: Beyond purchasing a property, one must undertake a comprehensive analysis – estimating renovation costs, potential sale price, and overall feasibility of the flip.
- Networking: Building relationships with key players, contractors, property agents, and potential buyers. This network could prove invaluable in expediting the flip process and ensuring profitability.
Dave: “Jon, do you have any final advice for someone who’s looking at getting into flipping right now?”
Jon Schoeller said, “Always approach a flip with a plan. Remember, you make money in this market when you buy, not sell. So, ensure you are buying at the right price.”
Through the conversation with Jon Schoeller, it’s evident that while the core principles of real estate flippiEstateain remain unchanged, adopting a flexible and adaptable approach to the current global situation could be the key to success. Ensuring you have the proper knowledge, networking skills, and a robust plan can contribute significantly to the profitability of your flipping endeavours.
If you are ready to start investing today and want more information about how your mortgage may be secured – or are looking to apply for a mortgage today – click the link below for a free strategy call with our mortgage team at LendCity today.