TLDR;
This video provides a detailed guide on how to flip cars for profit, aiming to make around $1,000 a day. It emphasizes starting with affordable cars and building a strong network rather than requiring a large initial investment. The guide covers finding cars through unconventional methods, evaluating mechanical skills for smart buying, setting up for reconditioning, and effective marketing and selling strategies.
- Building a network is more important than having a lot of capital.
- Focus on your mechanical skills to make smart buying decisions.
- Speed up the process to scale up to $1,000 a day.
Introduction to Car Flipping [0:00]
The video introduces the concept of flipping cars as a viable way to profit in the current economic climate. Lucky Lopez aims to provide a detailed guide on how to wholesale cars and potentially earn around $1,000 a day. He mentions his company sells between 60 to 100 cars monthly, with an average gross profit of $750 per car. The video will cover how to scale up, get started, and debunk the misconception that car flipping requires a lot of money.
Finding Cars: Building Your Network [1:39]
The key to successful car flipping is making money when you buy the car. While online platforms like Facebook and Craigslist are options, they are highly competitive. Building a network is crucial, which involves creating a website, printing cards, and physically visiting places like title loan companies and pawn shops. Building relationships with these establishments can lead to exclusive deals on repossessed or unwanted vehicles.
Building Relationships and Attending Auctions [2:56]
To build strong relationships, bring donuts to places like payday loan stores, pawn shops, and tow companies. Learn people's names and always be friendly, even if initially rejected. Create a calendar with all the auction dates from tow companies within a 50-mile radius. Initially, focus on observing the auction process without buying to understand bidding dynamics and avoid overbidding.
Exploring Auto Repair Shops and Body Shops [5:16]
Another secret gem for finding cars is visiting auto repair shops and body shops. Bring donuts and cards, and inquire about junk cars or customers who haven't paid their bills. Building a network feeds your inventory, leading to shops calling you with opportunities. While online platforms are convenient, building a network ensures a consistent flow of deals.
The Importance of Building a Network [6:25]
Building a network takes time and effort, but it's the most important thing. Persistence is key, as it may take months or even years to establish relationships. Once established, these relationships can lead to a consistent flow of deals, such as getting access to a large number of cars from a title loan company. Building a network funnels deals, allowing you to scale up your car flipping business.
How to Buy Cars Effectively [8:26]
Knowing how to buy cars depends on your mechanical skills and capabilities. When starting, focus on fast, quick transactions, even if the profit per car is small. Base your purchasing decisions on what you can actually do. For example, if you're good at detailing, buy cars with faded paint and clean them up.
Matching Car Purchases to Your Skill Set [9:14]
Match your car purchases to your skill set to avoid getting stuck with cars that require extensive repairs you can't handle. Specializing in cars you know well, such as those you've owned or worked on, can give you an advantage in diagnosis and repair. Avoid overstepping your abilities, as this can lead to running out of money and difficulty selling the cars.
Types of Cars to Focus On [10:30]
The best cars to flip depend on your area and skill set. If you're mechanically inclined and familiar with a particular brand, focus on those cars. When starting, avoid exotic or luxury cars, as repairs can be expensive. Stick to American, Korean (Hyundai and Kia), and Japanese cars, as parts are generally more accessible and affordable.
Simple Ways to Increase Profit [12:57]
Simple actions like detailing, taking better pictures, and cleaning up the car can significantly increase its value. People are often lazy and don't take the time to present their cars well, so even a basic cleanup can make a big difference. By buying a car, cleaning it up, and retaking the pictures, you can often sell it for $500 more.
Setting Up for Reconditioning (Recon) [13:39]
To set yourself up for reconditioning, obtain a generic Mobile Mechanic license to get a tax-free cell number and access wholesale discounts on parts. This license can pay for itself with the savings on just one part. Buying parts as a licensed repair shop also provides warranties and potential labor reimbursement for defective parts.
Partnering with a Mobile Mechanic [15:59]
If you're not mechanically inclined, partner with a mobile mechanic. Pay them for their time to look at cars with you, as their expertise can save you thousands of dollars and prevent headaches. Building a relationship with a mobile mechanic ensures you get fair prices and reliable service.
Speed and Process in Reconditioning [18:01]
If you are a mechanic, focus on speed. Buy cars in bulk, get them running, and take them to auction. While you could make more by perfecting each car for retail, the goal is to speed up the process and reach $1,000 a day. Develop a process for buying, preparing, and reconditioning cars to streamline your operation.
Evaluating Repair Costs and Setting Profit Margins [18:41]
As soon as you buy a car, evaluate it thoroughly and list all necessary repairs. Determine the retail price by checking Facebook, Craigslist, and OfferUp, then calculate your potential profit margin. By working backward from the retail price and accounting for repair costs, you can ensure a built-in profit margin and cushion for unexpected expenses.
Marketing and Selling Your Vehicles [21:51]
When marketing your vehicles, take good pictures and wash the cars. Be one of the cheapest options on platforms like Facebook, Craigslist, and OfferUp. Consider selling directly to dealers, who are always looking for affordable cars. While you may make less money per car, you can sell them more quickly and scale up your business.
Alternative Selling Strategies [24:09]
Explore selling at public auctions, where you can make a deal to run your cars. In some states, you can also sell at dealer auctions like Copart and IAA with a mobile mechanic license. Building your network at these auctions can lead to dealers seeking you out for affordable cars.
Leveraging Your Network for Sales [25:23]
Maintain a calendar or board with the contact information of dealers and their preferences. Send group texts with available cars in their ballpark. Sometimes, make an offer on a car and send it to a dealer before even buying it, securing a quick profit. The network on how you buy cars and how you sell cars is very important.
Conclusion and Final Tips [27:40]
Focus on building your network, pushing out cars, researching car values, keeping recon costs down, and speeding up your process to scale up to $1,000 a day. Start by flipping a few cars to see if you enjoy it before investing in licensing. Consider working as a buyer for a dealership to gain experience. Cheap, affordable cars are always in demand, especially during economic downturns.
