Now today we are inviting two of our best entrepreneurial friends onto the show to talk ALL about their flipping business. And we are GOING there. But before you think this is going to be a Chip and Joanna Gaines esque episode on paint colors or tile, think again. We are DEEP diving with Chelsie and Ryan on ALL things flipping houses. 

Chelsie and Ryan talk about their story of how they got into flipping, how they built their flipping business slowly over time, how to get investors to invest in your business, and why borrowing money is a good thing. They touch on how the economy affects flipping, and which housing market is better to flip in, as well as a BUNCH of resources for beginners to learn more about flipping and finances. 

Even if you’ve never been interested in starting a flipping business, keep listening because we PROMISE you you’ll get something amazing from these two entrepreneur powerhouses. 

 

Chelsie & Ryan’s Story 

Chelsie & Ryan is a husband and wife team that flip and renovate homes, but more than that, they consider themselves entrepreneurs who create businesses that allow them to live the life they love with their children. They’ve built a million-dollar flipping business that gives them the opportunity to raise their kids and work in their passions together.

 

Why they started flipping 

The people you know who do it make it glamorized and make it into tv shows and don’t make it attainable. Or give you the step-by-step to make it seem easy and get into the market. 

After Chelsie ran her first business that was very successful and then decided to transition of out of it in 2019 after they started having babies. She came to this realization as a woman who wanted a family, but also kind of a stay-at-home mom but also still able to work outside of the home a little. She wanted to find something that wasn’t in an office or a strict 9-5 so she could flow and form with her family and children. 

It was important to her and Ryan that they started something that allowed them to be together and something that they could bring their kids along for the adventure. They looked at their values and passions and then matched those with the marketplace where there was an opportunity to create income. 

Sometimes people only focus on their passions, they don’t realize that passion also has to tie into a market place and a need to create value. That’s why they started flipping homes. They were able to produce a lot of value not just financially for their family but also in their community. Taking homes that were in rough shape, beautifying them, and letting them be a blessing for the next family that moves into them. 

They started slowly with their first flip as their camper. They didn’t look at it as a flip but had sold it for a profit afterward which is kind of unheard of in the camper world. Next, they found a house that was on a budget that had room to be more if they put some time and money into it. They jumped on it and took a risk and did their first house flip. 

 

How to find investors

The hard answer is you have to create long-term relationships with people and try to trust them. Chelsie and Ryan are so thankful that they have roots in their area because people have seen them over a period of time be responsible and faithful people. People that can trust them with their money. Now they have people seeking them out wanting to invest in their companies, but it starts with the foundation of people that you have known over a long period of time.  

Be faithful with little opportunities, little financial things, and your own personal finances. If you can’t be fiscally responsible in your private life people won’t be excited about investing in you. You have to be last on the totem pole, Ryan and Chelsie always put themselves last. They paid their team members and investors first even though that meant they would make less. They knew in the long term they would make more. 

Leveraging other money is key. If they had made this business on their money alone they wouldn’t have been able to do it. You have to humble yourself to make less at the beginning. 

 

The top things you should know or resources to learn from

The one thing that is the easiest way is with the home that you own. If you have a home that you have bought and have lived there for two years, you don’t have to pay capital gain on any profits. Capital gains is basically a tax that is assessed on profits from an investment. That could be you bought a house and you resold it or you bought stock. You avoid that tax. 

Work towards buying that house, take your time, you don’t need to be in a rush. Use that as your first investment. 

The biggest thing to having any sort of renovation business is having amazing contractors. It is so important to find amazing contractors to make relationships with and take care of them. Practice with your own home and then don’t be afraid of good debt and asking people for their money. That is the basis of how you scale and grow your wealth. 

Resources: 

Flipping 101- HGTV Show

Flippin Experts Course 

Rich Dad Poor Dad 

Tax-Free Wealth 

Wealth Labs Podcast with Garrett Gunderson 

 

Economy vs. the housing market 

You tend to make more money in down markets. A down market is when the market is in a recession or where there are ample foreclosures. Whereas right now it is a very hot economy and is more difficult to make more money, especially in Florida where they are at. Right now you are trying to buy houses at a new price that wasn’t even established a year ago. Then you are trying to push it even more to a number that hasn’t been conceived. There are houses now that are 50-60% more than they were a year ago. 

So it is easier in down economy and foreclosures because you are buying houses that are 30-40 cents a dollar where right now it is 80 cents. 

You have to be constantly on tabs with what the economy is doing. 

 

What the reality fixer-upper shows don’t show 

One of the main things, they don’t show the team that is behind all of it. Everyone has things they enjoy doing, the majority of times they aren’t doing the nitty-gritty details. For authenticity, they want to show you them renovating, painting, styling but in reality, a true business owner who wants to create a beautiful life knows that they are not the superstars. There has to be a team that is skilled in different things. HGTV doesn’t do a good job of showing that the people owning the business aren’t doing all the work, they have a team. 

Numbers are never accurate on HGTV. They don’t ever show holding fees, origination costs and various fees that you have that are very substantial and important to account for. Most of the people that are flipping on HGTV don’t have gobs of cash that they are using, they are using other people’s money and they are paying origination fees and holding costs to use that money. 

 

Is it important to be a realtor?

Not everybody says you should be a realtor if you are going to flip. Ryan likes it cause he wanted to be able to see houses as quickly as possible. He didn’t want to have to call somebody and schedule around their day. Entrepreneurs want to control so being a real estate agent helps a lot. You don’t have to be but on their first house, they made 19k and then found out their real estate agent made 16k. 

 

First steps 

Start with your home. Learn those hard lessons when it is your home and not as high as a risk. Then start educating yourself on books, your mindset about money, and leveraging money. 

 

 

Show notes 

The Heart Conference: www.theheartuniversity.com/conference

 

Heart Conference Facebook Group: https://www.facebook.com/groups/170106201881803/

 

Gigi Pip: https://ctgro.com/VUumgWLeq 

Use code “heartandhustle” for free shipping when you use the link! 

 

Follow along with Ryan & Chelsie: 

www.instagram.com/surfgirlsdesign

www.instagram.com/chelsieantos

www.surfgirlsdesign.com

 

Resources: 

Flipping 101- HGTV Show

Flippin Experts Course 

Rich Dad Poor Dad 

Tax-Free Wealth 

Wealth Labs Podcast with Garrett Gunderson 

 

If you want to connect with us and other listeners in the Heart and Hustle community join our Facebook group here.

 

 

Follow along:

www.instagram.com/mrslindseyroman

www.instagram.com/evierupp

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