So You Want to Be a Flipper?
House flipping has become one of the most talked-about strategies in real estate investing — and for good reason. The idea of buying a distressed property, fixing it up, and selling it for a profit is exciting. It’s active, tangible, and full of opportunity.
But for first-time flippers, it can also be full of surprises.
At ZINC, we’ve funded hundreds of flips and watched new investors grow into seasoned professionals. Along the way, we’ve learned what separates successful flippers from those who struggle to get off the ground.
If you’re thinking about jumping into your first flip, here’s what you need to know before you start swinging a hammer.
1. Know Your Market (Really Know It)
The number one mistake new flippers make is underestimating how local real estate really is.
Success in flipping doesn’t come from watching national trends — it comes from understanding your backyard.
Look at comparable sales (known as “comps”) for properties that match your target home in size, condition, and location.
- How quickly are homes selling here?
- What price point moves fastest?
- Who’s the buyer — investors, first-time homeowners, or families upgrading?
Study neighborhood data.
Ask:
You can’t force a market to give you profit. You have to work within it.
2. The Numbers Have to Work — Before You Buy
Every flip starts with a formula, not a floorplan.
A general rule in flipping is the 70% rule — never pay more than 70% of the property’s after-repair value (ARV), minus the cost of repairs.
For example:
If a home’s ARV is $400,000 and repairs will cost $60,000, your max purchase price should be around $220,000.
That number might feel conservative — and it should. Profit in flipping is made when you buy right, not when you sell.
3. Build the Right Team
Even the best flippers aren’t solo operators. You’ll need:
- A contractor or crew who understands both quality and speed.
- A real estate agent who knows your target market inside out.
- A lender who can fund your project quickly and reliably.
At ZINC, we fund experienced and first-time flippers across California. Because we’re a direct, licensed private lender — not a broker — we can move quickly to get deals done. And we know what makes a flip viable.
If you’re just starting out, working with a lender who’s been through hundreds of projects can save you from costly mistakes.
4. Understand the Rehab Process
Renovation timelines almost always stretch longer than expected.
The key is planning. Break your project into stages — demo, framing, mechanicals, finishes, and inspections. Build in contingencies for unexpected repairs and permit delays.
Keep your finishes in line with the neighborhood. Don’t overbuild for your market. The goal isn’t to create a luxury home — it’s to sell quickly and profitably.
And remember: speed matters. Every extra week you hold the property, you’re paying more in taxes, insurance, utilities, and interest.
5. Manage Your Risk
Flipping can be profitable — but it’s not without risk.
Markets shift. Repair costs rise. A bad contractor can delay your project for months.
The best flippers protect themselves with conservative numbers, solid exit strategies, and trusted partners.
At ZINC, our borrowers often start small — one property at a time — and scale as their systems improve. We look for strong deals with solid ARVs, realistic budgets, and borrowers with a clear plan to exit quickly.
When you align with a lender who shares your focus on risk management, you position yourself for long-term success.
6. Learn, Adjust, Repeat
Your first flip won’t be perfect — and that’s okay.
Every project teaches you something new about construction costs, timelines, and negotiation.
Track everything: your budget, your profit margins, your days on market. The data from your first few flips becomes your roadmap for scaling profitably.
The goal isn’t just to flip a house — it’s to build a repeatable business model.
The Bottom Line
Flipping can be incredibly rewarding when done right. It blends creativity, finance, and entrepreneurship — and it helps improve communities by turning neglected properties into homes again.
But success comes from preparation, not luck.
Start with the numbers. Surround yourself with experts. Work with a lender who understands your market and shares your vision for disciplined, profitable growth.
At ZINC, we’ve helped hundreds of flippers succeed — because we know the process, we live in the markets we lend in, and we believe that smart, local investing builds real wealth.
If you’re ready to start flipping — or scale what you’ve already begun — connect with our team at ZINCIncomeFund.com to learn how private lending can power your next deal.
