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This is how to get started car flipping in as little time as possible.
[PART ONE]
1. Who is this post for?
This post is for people like my younger self.
This post is for people who want to get started with their fastlane journey but find themselves action faking and consuming too much information.
You have read book after book, post after post, but are in the same position.
Don't be discouraged.
You've been collecting gasoline. You just need a spark to start your journey.
I'm not a billionaire SaaS titan yet. I am just one step ahead of you, this is the guidance I wish I had.
This post is for anyone who is tired of wasting time and wants to get start ASAP
2. What is car flipping?
Car flipping is the process of buying cars, fixing them, and selling them for profit. Typically, you'll find your cars on Facebook Marketplace.
You'll learn how to assess the risk of each car/ investment.
You'll learn how to fix whatever issues the car has (provided you can with your space and resources).
Finally, you'll learn how to clean a car and post it on Facebook to get the highest price possible
3. Why flip cars?
Car flipping is THE side hustle for people who don't mind getting their hands dirty or doing physical labor to start out. The only hard-to-come-by thing is a driveway. If you have a driveway, you're in luck. If not, I have friends who fix cars quickly on the street in front of their house, but I have no experience with that so I'm not recommending it
The startup costs are relatively low (I would recommend having at least $2.5k and a driveway) and the market is enormous.
How many people need a car?
How many people are in the market for a cheap, $3-5k car?
A lot.
"messages from a three week old listing, I've gotten over 100 messages"
This is a car I decided to keep but three weeks later I'm still getting message after message.
I bought it for $1700 and can get easily get $3000 for this car. The car isn't in perfect condition, it's missing the catalytic converter. I can find one and get it installed under $400
"other 2003 crvs posted on facebook"
"Darwin, you didn't mention you have to be mechanically inclined"
That's because you don't. I am not a mechanic. I have learned everything from YouTube and I'll show you how to do it as well.
I really do think this a great way to get started making money on your own because it teaches you these transferable business skills
(1) Assessing risks and seeing opportunities (When I'm in a new area I always take notice of what cars people are buying)
(2) Handling stress and project completion (I've made a system to get cars sold quickly and to outsource work that I don't want to do)
(3) The ability to adapt to a new challenges frequently (I learned something new with each car)
etc.
"But I don't have $2500"
Then get $2500. If you're not willing to work a job/ sell possessions to save up to invest in yourself as a businessman then how can you expect to succeed in car flipping or in anything else?
To get started, I had to sell my beloved and take a job as a delivery driver...
4. Before starting
Learn learn learn and learn.
Spend a week learning and answering the doubts you have.
"How do I clean a headlight"
(by searching it on YouTube)
"The Facebook post says that the head gasket needs to be replaced"
(by searching it on YouTube)
"How do I negotiate for the best price?"
Learn from this post. Learn from the videos I linked below. Learn from videos that explain the systems of a car. What is the AC system composed of? What is an exhaust leak and what components of the car would you have to inspect to figure it out?
Your leverage in this process is the time you are willing to put into understanding cars and their systems.
You have to be interested in understanding what you are doing (why does replacing an alternator solve my car not starting) this will serve you so much in the future because most people who list their cars don't understand the system behind the symptom.
Most people hear a strange ticking noise from their engine and think "time to lease another one!"
You are gonna hear that noise, not know what it is, ask on Google. Make reddit post like these, figure out that you have to adjust the valves. And then YouTube "how to do a valve adjustment for a 2005 Ford Focus"
Your leverage is that you can don't have to go a over-priced mechanic for simple problems you can fix yourself.
Of course. This mean you're taking the responsibility to do the job correctly.
Watch a couple videos in this series to know the gist of what you're doing
(one)
Watch these videos to know how to inspect a car
(one) (two) (three) (playlist)
Get yourself a decent OBD2 reader. I got mine for 25 bucks from Walmart
5. Finding cars
Your tools for finding cars will be Facebook and Kelley Blue Book
Finding cars is pretty easy in my opinion. After selling a car, it would take me maybe 1-3 days to have a new one. Maybe this is just because I live in a city area so I will put that disclaimer there.
Here's how I did it.
First I would go on Facebook Marketplace and sort by cars that people like to drive in my area or in cities near me. Be in the 1000-2500 price range with the intention to talk down the price
For example, I live in a city with many Dominicans so I'd prioritize finding Honda Accords, Civics, or especially CRVs.
If I were in the city I grew up in, I'd be looking for Kias and Ford pickup trucks because the Mexicans there buy those a lot
If I were closer to the rich white town I used to work in, I'd save up more money to start flipping newer Subarus and Toyotas. This is a skill that you get better at with observation and practice.
You'd be surprised how simple it is to know your market, just look at what the average person drives in your city. This step is easy to skip. You may be like me and think that any NPC car would sell...
Until I sat with a 2007 Toyota Camry for 2 weeks because I was hard headed and chased money, not the needs of the market. Still sold because it was a good NPC car but took so much longer than if I were to buy a Honda.
Once your searching on Facebook you'll start to see a rhythm. Accords of xxxx year car usually cost 3k, CRVs of xxxx year go for 4k...
Eventually you'll be able to spot a unusually good deal. It's most likely going to be a good deal because you have to add value to the car by fixing the problems it has. Some cars have more problems, some have less
Now it's time to make sure its worth pursuing. Go on Kelly Blue Book and enter the cars information. You want to check the Trade in Price (this is the price a dealer might offer for your car, this is around the price you want to buy at) and the Private Party Price (this is the price KBB thinks you can sell the car for, this number isn't always accurate but its a good starting point in most cases. Expect to never make more than what KBB is telling you the average trade price is)
For example, one of my first successful flips was a 2005 Honda Accord LX with 200k miles. The listing at the time was for $2.2K. I don't have a picture of that old listing but here is an example of a similarly priced Accord, 200 dollars less actually... and with less miles... and close by to me... be right back.
The trade in price for a 2005 Accord with 200k miles is
The private party price is
The potential KBB profit is 1600 (3600-2000) and the owner indicated that it needs a gasket cap.
That process may be as simple and buying the tools and head gasket cover to replace it or it could be something much more serious. People listing on Facebook often have the tendency to lie about their cars so this is why you understand how to inspect as car thoroughly.
Either way let's say in the worst case scenario you have to invest 800 dollars to fixing all the problems this car has since you're inexperienced. You'd be able to make 800 on this car.
This is an opportunity I would take but you have to assess your skill level, your risk tolerance etc.
Tips:
- confirm kbb private party price by seeing similar, properly working cars on FB marketplace
- click on the persons profile and make sure they are not a car flipper like you
PART TWO
PART THREE
[PART ONE]
1. Who is this post for?
This post is for people like my younger self.
This post is for people who want to get started with their fastlane journey but find themselves action faking and consuming too much information.
You have read book after book, post after post, but are in the same position.
Don't be discouraged.
You've been collecting gasoline. You just need a spark to start your journey.
I'm not a billionaire SaaS titan yet. I am just one step ahead of you, this is the guidance I wish I had.
This post is for anyone who is tired of wasting time and wants to get start ASAP
2. What is car flipping?
Car flipping is the process of buying cars, fixing them, and selling them for profit. Typically, you'll find your cars on Facebook Marketplace.
You'll learn how to assess the risk of each car/ investment.
You'll learn how to fix whatever issues the car has (provided you can with your space and resources).
Finally, you'll learn how to clean a car and post it on Facebook to get the highest price possible
3. Why flip cars?
Car flipping is THE side hustle for people who don't mind getting their hands dirty or doing physical labor to start out. The only hard-to-come-by thing is a driveway. If you have a driveway, you're in luck. If not, I have friends who fix cars quickly on the street in front of their house, but I have no experience with that so I'm not recommending it
The startup costs are relatively low (I would recommend having at least $2.5k and a driveway) and the market is enormous.
How many people need a car?
How many people are in the market for a cheap, $3-5k car?
A lot.
"messages from a three week old listing, I've gotten over 100 messages"
This is a car I decided to keep but three weeks later I'm still getting message after message.
I bought it for $1700 and can get easily get $3000 for this car. The car isn't in perfect condition, it's missing the catalytic converter. I can find one and get it installed under $400
"other 2003 crvs posted on facebook"
"Darwin, you didn't mention you have to be mechanically inclined"
That's because you don't. I am not a mechanic. I have learned everything from YouTube and I'll show you how to do it as well.
I really do think this a great way to get started making money on your own because it teaches you these transferable business skills
(1) Assessing risks and seeing opportunities (When I'm in a new area I always take notice of what cars people are buying)
(2) Handling stress and project completion (I've made a system to get cars sold quickly and to outsource work that I don't want to do)
(3) The ability to adapt to a new challenges frequently (I learned something new with each car)
etc.
"But I don't have $2500"
Then get $2500. If you're not willing to work a job/ sell possessions to save up to invest in yourself as a businessman then how can you expect to succeed in car flipping or in anything else?
To get started, I had to sell my beloved and take a job as a delivery driver...
4. Before starting
Learn learn learn and learn.
Spend a week learning and answering the doubts you have.
"How do I clean a headlight"
(by searching it on YouTube)
"The Facebook post says that the head gasket needs to be replaced"
(by searching it on YouTube)
"How do I negotiate for the best price?"
Learn from this post. Learn from the videos I linked below. Learn from videos that explain the systems of a car. What is the AC system composed of? What is an exhaust leak and what components of the car would you have to inspect to figure it out?
Your leverage in this process is the time you are willing to put into understanding cars and their systems.
You have to be interested in understanding what you are doing (why does replacing an alternator solve my car not starting) this will serve you so much in the future because most people who list their cars don't understand the system behind the symptom.
Most people hear a strange ticking noise from their engine and think "time to lease another one!"
You are gonna hear that noise, not know what it is, ask on Google. Make reddit post like these, figure out that you have to adjust the valves. And then YouTube "how to do a valve adjustment for a 2005 Ford Focus"
Your leverage is that you can don't have to go a over-priced mechanic for simple problems you can fix yourself.
Of course. This mean you're taking the responsibility to do the job correctly.
Watch a couple videos in this series to know the gist of what you're doing
(one)
Watch these videos to know how to inspect a car
(one) (two) (three) (playlist)
Get yourself a decent OBD2 reader. I got mine for 25 bucks from Walmart
5. Finding cars
Your tools for finding cars will be Facebook and Kelley Blue Book
Finding cars is pretty easy in my opinion. After selling a car, it would take me maybe 1-3 days to have a new one. Maybe this is just because I live in a city area so I will put that disclaimer there.
Here's how I did it.
First I would go on Facebook Marketplace and sort by cars that people like to drive in my area or in cities near me. Be in the 1000-2500 price range with the intention to talk down the price
For example, I live in a city with many Dominicans so I'd prioritize finding Honda Accords, Civics, or especially CRVs.
If I were in the city I grew up in, I'd be looking for Kias and Ford pickup trucks because the Mexicans there buy those a lot
If I were closer to the rich white town I used to work in, I'd save up more money to start flipping newer Subarus and Toyotas. This is a skill that you get better at with observation and practice.
You'd be surprised how simple it is to know your market, just look at what the average person drives in your city. This step is easy to skip. You may be like me and think that any NPC car would sell...
Until I sat with a 2007 Toyota Camry for 2 weeks because I was hard headed and chased money, not the needs of the market. Still sold because it was a good NPC car but took so much longer than if I were to buy a Honda.
Once your searching on Facebook you'll start to see a rhythm. Accords of xxxx year car usually cost 3k, CRVs of xxxx year go for 4k...
Eventually you'll be able to spot a unusually good deal. It's most likely going to be a good deal because you have to add value to the car by fixing the problems it has. Some cars have more problems, some have less
Now it's time to make sure its worth pursuing. Go on Kelly Blue Book and enter the cars information. You want to check the Trade in Price (this is the price a dealer might offer for your car, this is around the price you want to buy at) and the Private Party Price (this is the price KBB thinks you can sell the car for, this number isn't always accurate but its a good starting point in most cases. Expect to never make more than what KBB is telling you the average trade price is)
For example, one of my first successful flips was a 2005 Honda Accord LX with 200k miles. The listing at the time was for $2.2K. I don't have a picture of that old listing but here is an example of a similarly priced Accord, 200 dollars less actually... and with less miles... and close by to me... be right back.
The trade in price for a 2005 Accord with 200k miles is
The private party price is
The potential KBB profit is 1600 (3600-2000) and the owner indicated that it needs a gasket cap.
That process may be as simple and buying the tools and head gasket cover to replace it or it could be something much more serious. People listing on Facebook often have the tendency to lie about their cars so this is why you understand how to inspect as car thoroughly.
Either way let's say in the worst case scenario you have to invest 800 dollars to fixing all the problems this car has since you're inexperienced. You'd be able to make 800 on this car.
This is an opportunity I would take but you have to assess your skill level, your risk tolerance etc.
Tips:
- confirm kbb private party price by seeing similar, properly working cars on FB marketplace
- click on the persons profile and make sure they are not a car flipper like you
PART TWO
PART THREE
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