Send us a text

Distressed properties consistently outperform retail properties in the house-flipping business, despite most beginners being attracted to prettier, move-in ready homes. I break down why "ugly pays" and share my exact filtering system that ensures profitable deals.

• Retail properties (clean, updated, move-in ready) are priced at market value with no profit margin
• Distressed properties (ugly ducklings) sell below market value because buyers can't see past surface problems
• Only buy properties at 65-70% of after-repair value minus rehab costs (the 70% rule)
• Beginners should also factor in carrying costs (the SOC - Safe Offer Cap)
• Three profitable property types: cosmetic fixers, estate sales, and pre-foreclosures
• Avoid: new construction, recently flipped properties, and homes priced within 5% of comparable sales
• The biggest mistake: falling in love with pretty properties
• You make money when you buy, not when you sell

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. We're grateful to be part of your journey. Now get out there and get cracking.

Want to learn how to flip your first house?

CLICK HERE to learn more about our upcoming boot camp, Flipper Camp.

Learn to build a house flipping or multifamily business: Clark St Academy