J. Scott - The Book on Flipping Houses: How to Buy, Rehab, and Resell Residential Properties

Copyright 2013 by Lish Marketing, LLC. All Rights Reserved.

Published by BiggerPockets Publishing LLC, Denver, CO

This publication is protected under the U.S. Copyright Act of 1976 and all other applicable international, federal, state and local laws, and all rights are reserved, including resale rights: you are not allowed to reproduce, transmit or sell this book in part or in full without the written permission of the publisher.

Limit of Liability: Please note that much of this publication is based on personal experience and anecdotal evidence. Although the author and publisher have made every reasonable attempt to achieve complete accuracy of the content in this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. Your particular circumstances may not be suited to the examples illustrated in this book; in fact, its likely that they wont be. You should use the information in this book at your own risk.

Any trademarks, service marks, product names or named features are assumed to be the property of their respective owners, and are used only for reference. There is no implied endorsement if we use one of these terms.

Finally, use your head. Nothing in this book is intended to replace common sense, legal, accounting, or professional advice, and only is meant to inform.

ISBN: 978-0-9889737-0-1

First Edition

To my amazing wifey, without whom I never would have had the inspiration to embark on this crazy and wonderful journey. Theres nobody Id rather be doing this with.

Thank you from the bottom of my heart.

J Scott

Table of Contents

Foreword

Theres nothing more frustrating than trying to accomplish a goal while lacking the knowledge of where to start or what steps youll need to take along the way. That feeling of helplessness is one that tens of thousands of real estate investors experience each year after deciding that they want to start flipping houses.

With the increasing popularity of television shows that glorify the trade, theres an influx of people coming into real estate investing who have far more ambition than they do experience. Unfortunately, there are few public role models these folks can look up to who can provide them an honest look at what it takes to be successful.

I only wish that I had access to a book like this one when I started investing in real estate -- Thats the feeling experienced house flippers will have when they read this book. You see, most investors have had to learn this business the hard way...by making mistake after mistake as they taught themselves the ins and outs of rehabbing houses.

In 2004 I started a website called BiggerPockets.com because I personally needed help with my own real estate investing. Like those people I mentioned above, I was frustrated by a lack of information from sources that I deemed to be credible. I believe this is a problem that our industry continues to suffer from, and I have made it my mission to change that. Ive been working to help better the lives of real estate investors for over 8 years now, and in that time, Ive met many people that I like, but very few that I trust implicitly. One of those select people happens to be J Scott, a house flipper that I met through BiggerPockets back in 2008.

J is one of the most intelligent people that Ive ever met; he has transitioned from a bright future in the technology space to a very successful career rehabbing houses in his home state of Georgia, and remotely in other parts of the country. He is methodical, systematic, and down to earth, and through his website, 123Flip.com, he has catalogued his experiences for all to see and learn from.

When J came to me about a book he was writing, I was ecstatic. Ive never come across a book that is more valuable to the house flipping community, and was honored that J wanted BiggerPockets to play a role in the distribution of his work.

Im proud to be associated with J and The Book on Flipping Houses, and I know that youll walk away from this book feeling not only excited about flipping and rehabbing, but knowing that youve got the tools to be successful in your own flipping ventures.

Flip onward...

- Joshua Dorkin, Founder of BiggerPockets.com

Introduction

Why Did I Write This Book?

Ive spent years watching real estate gurus rip-off eager new investors with high-priced seminars and training programs. Ive seen the late night infomercials that lead starry-eyed newcomers to believe that making money in real estate is as easy as making a phone call, buying a system, and waiting for the money to start rolling in. Ive spent several years in this business talking to up-and-coming investors who have paid thousands (or even tens of thousands) of dollars to these scam artists hocking their courses.

Unfortunately, what these gurus dont tell wannabe investors is that becoming successful at real estate takes more than buying a system or listening to a motivational speaker. These teachers and coaches are more about motivation than they are about education. They get their students excited about making lots of money and becoming financially independent. But they dont actually provide the knowledge and tools necessary to do it.

In other words, while they may get their students jumping up and down with excitement -- and at that same time get them to spend more money on more training -- most of these so-called mentors dont do anything to actually help their students start investing. In fact, the vast majority of people who have ever really considered getting into real estate never close their first deal!

Its not that real estate investing is tremendously difficult. And despite what the gurus and infomercials would lead you to believe its not that there are secret ways to make money in real estate that only the experts know. In fact, there are hundreds of different ways to make money in real estate. Even one small investing niche like flipping houses provides endless opportunity for the creative investor to be successful and earn large profits. And, while the endless opportunity might be great for established investors who are looking for new ways to earn a fortune, it can provide daunting challenges for up-and-coming real estate investors looking to break into the business.

Experienced investors often throw around the term analysis paralysis to refer to those new investors who really want to get the ball rolling with their first property, but who cant seem to get past the research phase. These new investors never feel ready to jump into the game, either because they are scared of the unknown or because they dont feel like they have enough information to be successful.

This book is for those up-and-coming investors who want to flip houses, but dont want to entrust their education (and their money) to gurus or scam artists. This book is for those who already have the motivation to become a rehabber and an investor, but just dont know where to start. Its for those investors who need that little extra push to help get past their fear, and help get over that hump of completing their first deal.

If youre ready to start flipping houses, this book is for you. My goal with this book is to help get you past your fear of the unknown and to provide all the information necessary to give you the confidence to take that first big step of completing your first -- or next -- deal.