Real Estate Rehab Secrets: Ask Me Anything Part 2

This episode of Demo to Dollars delivers real-world, actionable strategies that separate successful investors from the crowd.

Most aspiring house flippers never take action because they lack a clear blueprint. They scroll endlessly through online listings, hoping to stumble upon the perfect deal. But as we reveal in this Ask Me Anything session, the real opportunities lie where others aren't looking. You'll discover how to build multiple lead pipelines through direct mail campaigns, strategic networking with probate attorneys, and even unexpected sources like mail carriers who notice vacant properties.

Beyond finding deals, we tackle the questions that plague both new and experienced flippers: Should you stage your properties? How do you pay contractors without getting burned? What's the smart way to handle unexpected renovation costs? And should you attempt luxury flips for bigger profits? Each answer comes packed with practical wisdom gained from years in the trenches - like using milestone payments to keep contractors accountable, budgeting 10-20% for contingencies, and why staging creates an emotional connection that can lead to faster sales at better prices.

The house flipping landscape is competitive, but with these strategies, you'll position yourself to win consistently where others fail. Whether you're contemplating your first flip or looking to scale your existing business, these insights will help you build a sustainable, profitable real estate operation. Follow us wherever you get your podcasts so you never miss an episode of Demo to Dollars, your no BS playbook for flipping houses. Now get out there and get cracking!

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Chapters

• 0:00 Finding Off-Market Real Estate Deals
• 2:09 Home Staging: Worth the Investment?
• 3:15 Smart Contractor Payment Strategies
• 4:22 Handling Unexpected Rehab Costs
• 5:27 Luxury Home Flipping Considerations
• 6:21 Episode Closing and Call-to-Action

Transcript

Ed Mathews: 0:00

You need multiple lead pipelines working at all times so you're not dependent on one single source.

Ed Mathews: 0:07

Ever sat in your car scrolling through Zillow and thought, man, if I just knew where to start, I could flip one of these. Yeah, I've been there too. Most people who want to flip houses never even start, not because they're lazy, but because they don't have the blueprint. Well, that changes today. If you give me five minutes, I'll give you real world flipping strategies that actually work. No fluff, no theories, no gatekeeping, just real how-to information for you to apply today. This is Demo to Dollars, your no BS playbook for flipping houses. And I'm Ed Mathews, your host, okay. So we got really good feedback on last Friday's Ask Me Anything session, so I thought I Matthews your host. Okay. So we got really good feedback on last Friday's Ask Me Anything session, so I thought I'd do it again this week. So with that, larry C in Klamath Falls, oregon, asks how do you find good deals when everyone else is chasing the same ones? Love this question.

Ed Mathews: 0:59

This is where real flippers separate from the hobbyists. You can't just scroll through realtorcom and hope to win. You've got to get creative. I focus heavily on off-market deals because there's far less competition and a little more room to negotiate. That means direct mail to targeted sellers, cold calling, door knocking and even wholesalers who send me their good stuff before it hits the market. I also work with probate attorneys, family attorneys and even mail carriers who notice vacant properties. You need multiple lead pipelines working at all times so you're not dependent on one single source. Networking with other investors is also huge. I wholesale properties that I can't get to all the time, and it's not because I don't want to do the deal, it's that I don't have enough bandwidth. It does happen, probably once or twice a year. Sometimes they have deals they just can't handle and we'll pass them along for a finder's fee. The truth is, most people won't put in the effort to dig for deals, which is exactly why you can win by doing it consistently. If you want to beat the competition, you have to play where they aren't looking.

Ed Mathews: 2:04

Marcie M in Carmel, indiana, asks do you always stage your flips before selling? Not always. For instance, for modest homes, we typically don't have the margin. That said, staging can be super helpful. It absolutely shaves days on market off our exits. An empty house feels cold and lifeless and many buyers lack the imagination to see the house furnished with their stuff, but staging helps the buyers visualize how they'll actually live in the space. So it's not just about furniture. It's about creating an emotional connection, and I've seen staged homes sell faster and occasionally they'll sell for more money. And that's because people aren't just buying four walls and a roof, they're buying a vision of their future. Even light staging, like adding rugs and art and accessories, can completely change the vibe of a home. And the best part, you don't need to own the furniture. You can rent it for a fraction of what you'll make back in the sale price. Staging is marketing, plain and simple. If you want top dollar, you need to sell the dream, not just the property. Okay, venky R in Hartford, connecticut.

Ed Mathews: 3:12

What's the smartest way to pay contractors so you don't get burned? The key is milestone payments. You only release funds when specific parts of the job are completed and verified. Never pay 50% up front. That's how you end up with a half-finished kitchen and a ghost of a contractor. I start with a small deposit to cover initial materials, usually no more than 10% and then we set up clear checkpoints. For example demo complete, rough-in done, drywall finished, final touches is complete. Each milestone has a set payment tied to it, and the final 10 is only released after a full walkthrough and the punch list is done. This keeps the contractors motivated to finish strong. Also, always, always, always, get a lien waiver with each payment to protect yourself, just in case the contractor doesn't pay his subs and they end up coming after you later and never pay cash. Always use a method that leaves a paper trail. You're running a business, not a handshake operation.

Ed Mathews: 4:16

Next question Mark S in Rehoboth Beach, delaware, how do you handle unexpected rehab costs without killing your profit? Every single project gets a contingency budget. It's usually at least 10%, sometimes 15% or 20% of the total rehab cost. That money is there for surprises like mold that we find behind the walls, foundation cracks that we missed or old wiring that needs replacing. Every project has a curveball and you need to plan for it. The rookie mistake is running your numbers so tight that one bad discovery wipes out your margin. I also recommend getting a thorough inspection before you buy, even on flips, even if you're buying as is. So at the very least you know where the landmines might be. But even with inspectors, there's always something you won't catch. The key is to expect the unexpected and plan for it in your budget when you don't use the contingency fund. It's like finding bonus profit at the end of the project and if you have to use it you'll be glad you planned ahead instead of scrambling for extra cash. Mid-project Discipline in the buy phase is what protects you in the build phase.

Ed Mathews: 5:22

Bill O in Bryn Mawr, pennsylvania, asks Should I try flipping luxury homes for bigger profits? Luxury homes can be tempting Bigger price tags, bigger margins but they also come with bigger risks. The higher the price point, the smaller the pool of buyers, which means longer hold times and every month you hold, your carrying costs eat into your profit. Luxury buyers are also way more particular. They expect top-notch finishes and they won't tolerate sloppy work. That means higher rehab costs and a greater need for perfection. If you're just starting out, I highly recommend hitting a whole bunch of singles and doubles before you swing for the fences. These bread and butter homes move faster and are more forgiving if you make a small mistake. Once you've built up experience, systems and cash reserves, then you can consider moving on to higher end flips, but until then, play where the odds are in your favor.

Ed Mathews: 6:19

That's it for this episode. Thank you so much for making us a part of your day. If you're getting value out of these shows, drop us a comment and definitely follow us. It helps us grow. Until next time, thanks for listening to Demo to Dollars. If today's episode helped you move one step closer to your first or next deal, do me a favor follow us wherever you get your podcasts so you never miss a show. I'm grateful to be part of your journey. Now get out there and get cracking. Bye for now.