Today I’m excited to bring you my interview with successful new house flipper Tyler Smiarowski. I found his recent success story on Bigger Pockets very inspiring and I think his advice will be particularly useful to all you newer house flippers out there.
Tyler started investing in real estate by buying an owner-occupant duplex in 2007, but he only recently started flipping houses. He just sold his first flip last month, is currently working on his second, and closing his third next week. He already owns 23 rental units and he plans on flipping eight properties in 2015. On top of that, Tyler works full-time as a CPA.
Tyler initially got interested in real estate as a way to start saving up for retirement when he was still in college. He closed on his first duplex right out of college and he admits that he didn’t really know what he was doing at first but he was very eager to get started. He made a lot of beginner’s mistakes, but he still owns the property today.
Tyler found his first two duplexes using a realtor, while the last four he found privately by cold-calling and sending out letters. Tyler talks through the details of finding and assessing those properties in the interview, so make sure you check it out!
Tyler also goes over how he financed each one of his properties. He has certainly tried many different financing techniques in the past and it’s fascinating to hear his thoughts on each one.
After acquiring 23 rental units, Tyler dove into house flipping. He explains that he always considered it, but it took him a long time to try it for himself. In May of this past year, he had just found out that he was going to be a father and he wanted to make more money, so he decided to flip a house by the end of 2014. To find his first flip, Tyler bought and set up bandit signs in his target market. There wasn’t much of a negotiation with the seller and the deal was a success. For all you new real estate investors, I have a word of advice: if you know your numbers and you get an offer that fits your criteria, buy it. Everything doesn’t have to be a negotiation. If there’s no battle, then don’t fight.
Tyler calculated the ARV for his first flip by searching for similar properties listed or recently sold online. He tried to be conservative and came up with a pretty good estimate of what his house might go for. Then he brought in his contractor to estimate the rehab costs. I’ve talked about accurately estimating rehab costs in detail before, and Tyler goes over what he ended up replacing and the lessons he learned in the process.
Tyler is currently working on his second flip, which he found through a realtor, and just started renovating. Listen to the full interview for the numbers and inside scoop on this one!
The biggest piece of advice Tyler has for new real house flippers is the acronym KISS: Keep It Simple Stupid. Simple can and will make you money.
If any of you have questions, you can contact Tyler at firstname.lastname@example.org