Flipping houses from a distance may seem like an unattainable dream, especially if you reside in a costly market like Los Angeles. However, Dominique Gunderson defies the odds by flipping 12 houses from 2,000 miles away. Her success story is not only inspiring but also a testament to the profitability of long-distance ventures in real estate.
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Building the Team:
- The key to success in out-of-state house flipping is a reliable team on the ground. From real estate agents to lenders, having trustworthy individuals handling the day-to-day operations is essential.
- Networking plays a pivotal role in building a team. Attending local meetups and joining online groups can lead to valuable connections in the real estate industry.
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Starting with the First Deal:
- Dominique’s journey began with a modest deal bought for $51,000, which she turned around with a renovation cost of $45,000. While the profits were marginal, the learning experience was invaluable.
- Having a tangible property allows for meaningful conversations with potential partners and contractors, providing a solid foundation for future deals.
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Scalability and Profit Margins:
- Dominique focuses on two buckets of deals in her flipping business: entry-level properties worth $200,000 or less and higher-end properties in the $400,000-$500,000 range.
- Her target profit margin is 15% return on investment, ensuring a sustainable business model even in fluctuating markets.
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Team Expansion and Management:
- Scaling a flipping operation requires diversifying the team and systems in place. While initially working with a core team is efficient, expanding to multiple teams becomes necessary as volume increases.
- Utilizing project managers and general contractors to oversee operations streamlines processes and keeps projects on track.
- Balancing Remote Operations and Hands-On Involvement:
- Although managing a business remotely has its perks, being physically present at project sites offers a unique perspective and enhances the overall experience.
- Delegating tasks and focusing on vital aspects like acquisitions and capital raising allows for optimal efficiency and growth.
In conclusion, Dominique’s success story exemplifies the rewards of venturing into out-of-state house flipping. By focusing on building a strong team, maintaining healthy profit margins, and refining operational efficiency, aspiring investors can emulate her path to financial independence through real estate. Stay focused on long-term goals, prioritize strategic growth, and remember that success in house flipping is achievable regardless of your location.
