Back to the Basics- Flipping Houses



Flipping homes can be a great area to start and are a reliable investment. Greg Kilper tells us about how rentals can be capital intensive and when it comes to efficiency, he’s going back to flipping.



Mike: Welcome to the We Buy Ugly Houses show, where real investors share real investing stories and lessons from the trenches, where our team buys thousands of investment properties each year. Now, let’s meet today’s host. Greg: Hi, everybody. I’m Greg Kilper. I’m a development agent from St. Louis, Missouri and I’m going to be your host for the We Buy Ugly Houses show. Today, we’re going to talk about back to the basics. So back to the basics refers to flipping houses, which HomeVestors teaches us. I’ve been in the HomeVestors system for right about nine years now and that was what we started doing. When I first came in the system in St. Louis the market was down and we were still coming in, buying properties and just flipping everything. It was great, it was wonderful, did about two years of that, and that’s what I always recommend for new [AFs], when you come in, just flip, flip, flip everything. Try to . . . as many as you can unless you just get a great deal, that you think you think you can pull a rehab off on. You should generally be thinking about flipping, not rentals, not rehabs, flip. So basically, about the second, third year I got into rehabs, and we actually . . . me and my business partner had a conveyer line of these. At the time, they were available, we could get the financing, we knew the properties, we had a lot in the same areas. We focused on those 1970s and 1980s houses where they had the concrete foundations. You could pretty much manage the problems that might come up and they were great rehabs. So we did about two, three years of those then I decided it was a great idea to get into the rentals. And the rentals are very capital-intensive, more so than I realized even now. I’m just coming out of just loading a lot of money into those.
And what you find out is the market’s up right now so you can rehab properties but the buyers have private inspections, they have municipal inspections, they have gas inspections, they have sewer inspections, they have roof inspections, and that’s all fine. That’s all part of rehabbing. And that’s why we make more money for doing it, but you also have to look at the efficiency of your business. And I’ve got to be honest, I’m getting back to the basics. That’s why I’m giving this talk also. I want to share with you.
So for 2016, I was projecting, I wanted to do a lot of rehabs, I was going to go big. But after the experiences I’ve been having, I’m starting to think I can make just about as much money simply flipping the property. You don’t have to be the Picasso, you can be the person that gets Picasso his palette. Just buy the property and if you can make pretty close or maybe a little less than you would rehabbing it, a lot of times, it’s smarter just to flip that property and let someone else do it. Thank you for joining the show.
Mike: Are you looking to get started in real estate investing or take your investing business to the next level? HomeVestors, the “We Buy Ugly Houses” folks, is the number one home buyer in America, where our franchisees purchase thousands of houses each year, many of which started with little to no experience. If you’d like to chat, please visit Learn more from the We Buy Ugly Houses Show, an amazing HomeVestors team, by watching more shows at or by finding us on iTunes or Stitcher radio.

Gregory Kilper

Gregory Kilper

I joined HomeVestors in 2008 after working for a commercial real estate developer! Since that time I have rehabbed over 60 properties, purchased hundreds of houses, sold over 300 properties as a broker in Missouri and Illinois, built a rental portfolio of 70 doors and just recently raised a significant amount of private capital!
Gregory Kilper

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