No idea how to start? This is how to flip cars with less than $2500 and a driveway

[oneac]

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

 

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[The-J]

In another thread you were complaining and feeling bad about yourself, and in this thread you drop some serious value.

(I've made a system to get cars sold quickly and to outsource work that I don't want to do)

Sell it to others & it could be Fastlane. Some people ARE mechanically inclined & want to get started in a "side hustle" flipping cars, but don't want to deal with the headaches of selling it.

 

[oneac]

In another thread you were complaining and feeling bad about yourself, and in this thread you drop some serious value.

Yeah I took a step back and realized that I already know what I want to do and taking action would bring me closer to who I want to become, not whining like a little bitch.


Instead of complaining I thought "How can I add value to someone's day TODAY" and wrote this post

Sell it to others & it could be Fastlane. Some people ARE mechanically inclined & want to get started in a "side hustle" flipping cars, but don't want to deal with the headaches of selling it.

That's a good point. I thought of selling information in the form of a car flipping course that I'd sell to a YouTube audience. Maybe a simpler approach would serve as a quick win...

Right now I have my sites set on a SaaS for car flippers, but that is a long way to go

 

[oneac]

[PART TWO]

6. Reach out and set up a test drive
By now you've watched the videos, have a scan tool, and have found a good deal on a car according to Kelly Blue Book and your own market research.

You've gauged the risk based off the description and your skills (you wouldn't want to fix a car that needs a transmission replaced if you haven't even changed a car's oil before)

Great job so far. Now it's time to reach out to the seller.

The mindset you need to take is this: you are communicating with this seller to (1) build rapport (2) further gauge the risk of the investment and (3) if the risk is acceptable, set up a meeting time as fast as possible.

Notice how you are NOT aiming to secure a cash deal over text. Don't be like this guy:


Think of it from the sellers perspective.

Do you think they want to be lowballed over text, from someone who has no investment because they haven't even come to see the car? It's super annoying and your chances of getting to see the car go down dramatically.

Trust me.

Instead of shooting them a price, ask "is the price negotiable?"

This is an important line that I use basically on every seller. It is important to know if there's wiggle room so that you can leverage the negotiation skills you'll build.

Some people go down in price even if they say through text that the price isn't negotiable, but this usually isn't the case.

When reaching out be a kind, likeable person.
DON'T just send the default "Is this available message"

This is how I'd start my inquiry:
"hey, is the title clean"
or
"I'm interested in the car, is it located at your place?"
or
"hello, I'm interested in seeing the car, is the price negotiable?"
or
"beautiful car. Does it have any mechanical issues?"

You get the point, just be a normal person. If you wanted to approach a girl you were interested in, would your first line be "I'm rich and have a six pack"

Bruh.

Anyway, continue the conversation and gather important information that wasn't mentioned in the listing.
Is the title clean?
What mechanical problems does the owner say it has?
Does the car run?
Transmission okay?

Again... when reaching out to a buyer, you should never, EVER talk about money over the phone.

7. Setting up a test drive
So now you've went back and forth with owner a bit and are interested in going to inspect and test drive the car. What's the best way to set up a test drive for a car you see potential in?

Immediately.
Today.
Right now even, don't waste time.

When there's a good car deal, it's just a matter of time before another person or car flipper buys it.

One time I was picking up a CRV that had multiple buyers coming to see it in just an hour. I convinced the owner to let me be the first one and I got there in ten minutes and scooped it up.

Most sellers are tired of having a car they don't use blocking up their driveway. Your solution to their problem is being there ASAP, cash in hand, serious and ready to make a deal.

You text them something like:
"can I come see the car right now?"
"when's the earliest I can come check it out?"
"can we do a test drive today?"

If they're available and willing, you'll get their location and make your way to the car.

8. Inspecting
As to the specific steps in inspecting and test driving a car, I can't help you more than the videos ChrisFix and BuddysDIY put out. Watch them.

I made my own checklist for when I go to see a car.

This is everything I check for before I actually drive the car.

You can pull this up on your phone and make sure to list the things wrong with the car as you go along.

9. Negotiating
Negotiation is the most enjoyable part of car flipping, in my opinion.
Right now, you are armed with two powerful weapons:

(1) your list of problems you see with the car


and (2) the KBB trade in price

You want to use the list of problems to get the seller as close to the KBB trade in price.

You do this by being polite and after taking sometime to review your notes you go up to the seller and be like:

"Hey, firstly thanks for letting me see your car. I didn't know what to expect when I came here, but I am interested in buying this from you today. The car's in worse condition than I thought, [list out all the problems]. Considering the parts I have to buy and the price I have to pay to a mechanic to get it fixed, I think a fair price would be [KBB trade in price or below]"

Don't come across as a dickhead listing every single little thing, just let the guy know what you honestly think the car is worth, and back it up with the facts (list of problems)

If you want to be theatrical, then while you give the speech count the money you're prepared to give the person and at the end be like: "Here's the money counted, if you can say yes it's yours and you'll never have to see this car again"

When making the offer, use the word YOU a lot.

Make the deal about them and not about you.

Make it about how much you're going to help them, how much value the deal will bring to their life (money, free space, the car gone RIGHT now, cold hard cash in their hand without complications, etc). I learned this from @Fox

You may go back and forth with the seller, it's just part of the game

10. Buying the car
Once you agree on a price, you'll give them the money and they'll give you the title. If you sign the title on the buyers line you'll have to pay registration fees at the DMV and the process will take longer. But, this is the legal way of going about things.

Most independent car flippers just tell the seller they want to register the car under their father's or another relative's name. The seller then leaves the buyers line empty. The car flipper then fixes the car and then makes the person who buys the car from them sign the buyers line.

This is called title jumping.

Car flippers do this to avoid the time and money fees associated with registering cars. Also, states have a limit to how many cars you can register before needing a dealers license, so jumping the title is a way to get around that. This is called jumping the title and its illegal AND risky AND you can learn more about on YouTube and Google.

11. Bring the car back to your place and make a plan
If the car is not running or driveable, you have to get a towing service. These range in price depending on how far you need to tow the car. A typical range from what I've seen has been 200-400.

If the car is running or can start after a jump, a pretty good option is to rent a Uhaul with a car dolly.

These are usually way cheaper than towing and my second most used method. Again, they range in price but have never cost me more than what towing would've cost.

If the car ran fine, the method I used most was to pay a friend to give me a ride to the flip car. If I bought it, I'd put the plate from my actual car (which is home) and drive the flip car in front of him. This is also illegal.

Probably the most optimal method would be to own a pickup truck with a car trailer. This way you don't have to rely on UHaul, a towing company, or a friend to be available. The advantage here is massive, as you would be able to both get to the car and bring it back all by yourself, making you more nimble.

12. Make a plan
Once the car is at your place, you should make a simple plan of the problems you'll tackle. For example here is a plan I made for the Honda Accord we mentioned earlier




Basically, you need this plan to stay organized. Always try and fix the mechanical issues before the cosmetic ones.

Though, both are extremely important.

13. Fixing the car
This part is extremely individualized to each car.

The best piece of advice I could give you here is to know exactly what you're doing before starting to work on the car.

Of course, the more experience you have, the less you need to familiarize yourself with the problem but starting out leverage things like:

(1) YouTube tutorials
(2) r/MechanicAdvice and r/AskMechanics, post a video of your problem and a description and these guys usually can figure out what your problem is. Once they tell you what the problem is, make sure to ask them questions like "How could you tell?" you want to absorb as much of their wisdom as possible
(3) If none of those work, you can hire a mechanic to diagnose the problem

The tools you'll need will be specific to each job. It's my opinion that you should just buy the necessary tools for each car and as you flip more cars your arsenal of tools with grow.

As you flip more cars, the annoyance of having to run to autozone to buy that one socket size you don't have will become a problem of the past.

PART THREE

 

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[oneac]

[PART THREE]

14. Selling the car

Selling the car is as simple of
(1) Cleaning the car
(2) taking pictures,
(3) posting on Facebook for the KBB private party value/ market price,
(4) setting up a meeting, and
(5) exchanging the title and keys for money.

There's not a real reason to explain those concepts as they're pretty simple but here's a collection of tips I've learned for some steps

Cleaning
- I hate cleaning cars. I would pay a detailer 100 bucks per car or a hand car wash place 25 bucks per car
- Finding a reliable detailer and delegating the process to him (because I'm lazy) was a valuable lesson in entrepreneurship -- as the business owner the goal isn't to do every single task, it's to build a system independent from your time that provides value and generates money
- The day I save washing the car I usually spend looking for my next deal

Pictures
- The highest ROI pictures are the slightly sloppy ones you take in your driveway, you want to give the impression that the car is just sitting in the driveway, not being raced around the highway
- experiment with different picture styles and angles
- Get yourself a cheap baby on board sign with suction cups, put this on the back of the car if it makes sense (makes more sense on a family suv than a bachelor's coupe)
- taking pictures during sunset will make your cars look more appealing

Posting on Facebook
- List the car for either the KBB trade in value or for what your car usually goes for on Facebook Marketplace in good condition
- If you aren't getting a response, lower the price by 100 dollars every two days
- List EVERYTHING that's good about the car

Setting up a meeting
- Never meet at your place. Instead choose a public location where you can take the person on the test drive


That's about it for the guide! If you have any questions feel free to ask or DM me