From Renovations to Revivals with Scott Friedmann
Having a flipping business is the least passive thing ever. Many investors think they're going to create a nest egg from zero because that doesn't work. You need capital to invest or at least a special set of skills where you can be on the other side of the table and still be able to make profits.
Scott Friedmann, co-owner of The Home Revivalists, shares some insights into the world of flipping and investing. Scott and his wife Marisa are home transformation specialists. As a husband and wife team, Marisa does all the design while Scott is the contractor. Together, they design and build beautifully designed houses that any buyer would be proud of.
Tips for New Real Estates Investors
1. Be smart as an investor on the sale side.
If you have an offer, the first offer is usually the best offer because they're usually the most motivated when they're coming in.
2. Find a great and experienced partner.
It's tough to agree on everything and to be okay with spending more money on a project when you need to. But it helps to have an experienced partner so that you can constantly bounce ideas off each other. You're going to have a better product if you're brainstorming on things. A good partner should bring that to the table.
3. Leverage the power of networking.
Join real estate meetups to get to meet other investors. The more information you can get from other people and give to other people, the better it is for everyone involved. As a new investor, it gives you more confidence to know what others are doing because you can see what’s working and what’s not.
Even as an experienced investor, you also get to gather more information about, for instance, certain areas other people are investing in. Having those key information will give you the confidence that there are deals out there and there’s money to be made.
Whether you’re talking with an agent or another investor, relationships can get you so far, just knowing who works where and what the process is, sharing info about the towns, etc. Have a mindful approach that’s more collaborative than competitive.
4. Don’t spread yourself too thin.
Everybody's so obsessed with going bigger but you don't want to do 10 projects at once because there are certain things that you will be missing. Do one or two flips at a time if that’s what works best for you.
5. Think of other ways you can diversify your assets.
It's a nice way to get to something different whether it's a commercial property or an industrial property. Think of another asset class that you might be interested in over the long term.
If you want to learn more about Scott Friedmann’s journey from renovations to revival, check out www.trustgreene.com/podcast/zen/016.