Jake Knight confesses to living the dream – he’s a Bay Area house flipper. It seems that house flipping is all the rage these days, and the idea of flipping homes here for big bucks is a fever dream of many. In fact, ATTOM data estimates that nearly 6% of homes sold in the US in 2017 were flips – hundreds of thousands of houses each year. From coast to coast and state to state (and in every county in California!), houses are getting flipped, probably just down the street from where you live.
Who’s doing all this flipping? The answer is people like Jake Knight of Skye Homes LLC. He says flipping is the only thing he’s really wanted to do since he got out of high school, when he read Rich Dad, Poor Dad. It took him a while before he finally got into the business for real, but now he’s been a legit Bay Area House flipper for the past several years. With a background in finance and mortgage lending/underwriting, he takes a keen eye to every project he works on to ensure his ventures are profitable. But more than that, he’s concerned with creating value at every step in the process, including for the sellers of the flip homes he buys.
We had a very wide ranging discussion and covered a lot of hot topics which will be of interest:
- What makes a house a good flip candidate
- Finding houses that are good candidates for flipping
- What kinds of people sell to flippers?
- The value proposition for home sellers working a flipper
- Competition in the flipping business
- Financing flip projects and buying real estate with no money down
- Determining how much to pay when acquiring a property
- Pricing Strategy for the Resale
- Working with REALTORs
- Determining what materials, appliances, fixtures and such are appropriate
- Books and web sites useful for flippers
- How long does it take to flip a home
- Saving on taxes
- Real estate flipping in a changing market
- The importance of networking and where and how to do it in the Bay Area
If you’ve been thinking about getting into flipping, this is certainly an episode you’ll want to tune in to and listen to over again.