House flipping! Fix & Flip Trend USA, experiences & tips for beginners – Interview x Johannes Schwärzler

House & Apartment Flipping – At a time when interest rates are high and buying real estate results in lower returns, an alternative investment strategy is gaining traction: house flipping, also known as“fix and flip“. This method takes advantage of low real estate prices to buy houses and apartments, add value and then sell them quickly. So you don’t buy and keep the property for years, you buy, upgrade and resell for a higher price straight away – that’s the fix and flip strategy! We spoke to an expert in this field who offers us exclusive insights into the world of house flipping, from his own story to his personal experiences and insights into this particular market segment.

Flipper house & apartment 2024: Guest “Flipper Immo”

Today I’m talking to our interview guest Johannes Schwärzler. With his YouTube channel Flipper Immo, he shows fix & flip projects, explains the strategy, presents before / after examples and much more, all from the flipper practice. What does flipping mean to him, what are his experiences and tips as a house flipper!

PS: Finally, I asked Johannes for 3 video recommendations for Fix & Flip beginners. You can find the videos spread throughout the interview

FIV: Hello Johannes! Your story is really inspiring for those who want to make money in real estate and like hands-on work! Before we get to that, can you tell me in a nutshell, even for those who have heard about “flipping houses and apartments” for the first time, what is the “fix & flip” of real estate all about?

Johannes: As I grew up on a farm, I have always been involved in building, working and repairing. The first time I heard about the concept(buy, renovate, sellproperty) was on TV in a program from the USA: Fixxer Upper. A couple buys apartments and houses, renovates them and then sells them.

Fix and flip is primarily about creating value with worn-out apartments. The purchase usually also solves a few problems for the owner, who does not want to renovate, someone who can no longer rent the apartment or simply wants to sell it. The property is then renovated to a high standard and put back on the market after a few months.

Why is that possible? The best comparison is eating out vs. going out to eat. We could buy ingredients cheaply and spend time and energy cooking the food ourselves. Alternatively, we go to a restaurant, have someone cook, pay the rent and employees and prepare the ingredients, and are then prepared to pay money for this practical service. In this case, the restaurant owner has the margin and the associated profit.

It’s the same with apartments. Very few people want to renovate or even solve problems themselves. That’s where we come in as “pinball machines”.

Get out of the hamster wheel! Flipping and YouTube

FIV: Could you tell us how you went from an idyllic Demeter farm in the Allgäu region to real estate trading? What inspired you to do so?

Johannes: Looking back, all the jobs and experiences I’ve had so far have come together to form a big puzzle that has given me all the important skills to do this job.

After several years in corporations and start-ups, the day-to-day work no longer felt like you were creating real added value with what you were creating. You drive up sales and get new customers, but it’s not a satisfying creation of something. I also always wanted to be my own boss, to create real added value through something I produce and, of course, to be financially rewarded for it. After 10 years abroad, I realized that my future is right here and now and not hiding behind the next job or the next pay rise. As a result, I made the decision within a few days to finally do what I always wanted to do. To create something new from something old and earn money at the same time. Since that day, I’ve been living my hobby and sharing it with a cool community on YouTube and Instagram from day one.

It’s extremely fulfilling and fun every day. Flipping has so many different components. The financing, the people, estate agents, bankers, craftsmen, owners and, of course, a happy buyer who appreciates my work.

It’s extremely varied! I love it!

His start: draughtsman, estate agent, now pinball player

FIV: You have experienced different places like Dubai, Mallorca and Germany and had different jobs in real estate agencies and companies. What finally made you decide to start your own real estate flipping journey?

Johannes: That’s right. I trained as a draftsman when I was 16 and that was my first taste of real estate. I then went on to do my vocational baccalaureate because, to be honest, I didn’t really know what I wanted to do with my life.

As a result, in 2013, I went straight to Australia for 6 months for Work & Travel at the age of 23 and then straight to Dubai. I wanted to get out! I wanted to earn money, I thought that money makes you happy. In Dubai, I became a real estate agent as a career changer, was quite successful for my age and was able to make a good living from it. After 2 years, I wanted something different and then became a sales manager in a German company. With an excellent salary, a Porsche and 2-3 employees under my management, I realized that this couldn’t be it. Things don’t make me as happy as I had expected. The big mistake was my false expectations!

The opportunity arose and I moved to Mallorca, so after almost 4.5 years in Dubai, I started a new chapter.

Once there, I continued to work as a sales manager for an international German airline. In the B2B area, I looked after Amex, Priceline and similar major customers in the USA and Canada, so I got to see the world! I opened first flights in the USA at the airport on behalf of my company and of course visited many customers across the country. I am infinitely grateful for this experience to this day! An absolute privilege!

When COVID came, my 7-year relationship ended and I was at an important point in my life again, I had to make another groundbreaking decision.

What to do? Wait or simply… start!

There were two options: 1. to do the same thing I had been doing for the last few years. Look for a job. Work my way up and then sooner or later end up where I was at the time. Not quite fulfilled, looking for more and not my own boss.

Option 2: Whenever someone asked me back in Dubai what I wanted to do when I was “rich”, my answer was: buy old buildings, renovate them and breathe new life into them.

The famous loud click then came overnight: “Why wait until I’m rich to do what I want to do later. I’ll just do it now”!

So the plan was set. Create added value and thus generate more value. For me. According to my ideals, visions and creative ideas. After all, we alone are responsible for growth.

Video tip #1 – Old apartment becomes a modern luxury space

The ultimate MAKEOVER, you can find more videos on Flipper Immo.

The first Fix & Flip property

FIV: When you decided to follow your own path, you bought and renovated your first property in just two weeks. Can you tell us more about what this step was like for you and how you approached the renovation?

Johannes: Due to Covid and the long relationship, I decided to go back to Germany. To my origins. I had yellow postcards printed from Mallorca (“looking for a private apartment”) and ordered them to Germany. They arrived and on the 3rd day I was already out and about in the city for hours handing out these postcards. After a few days I received the first call, the first viewing and the notary appointment was 2 weeks later.

I also keep noticing that this is unfortunately a bit rare these days and that we try to get too much information about a topic. We always think there’s just one piece of information missing so that I can get started. The reality is that information is important, but implementation is even more important.

The first 2, 3 objects

The aim was also to renovate the first 2-3 objects as best I could myself in order to get to know the material and my “new” product. As I knew that I would be doing a lot of flipping in the future, it was important for me to get to know my product. Inside and out. Of course, the best way to do this is to renovate an apartment yourself with your father, the hard-working farmer to whom you owe your manual skills.

To this day, I am incredibly proud that he is part of my first GmbH and “works” wherever he can! I call this part: giving something back!

The first project was an exciting step. I knew that no matter how long it took or what mistakes I made, I was only doing it for my future and myself! It was so much fun that while one apartment was still being renovated, I had already reserved the second one.

More money, more happiness?

FIV: You mentioned that you earned your annual salary in just three months with the sale of this first property. How has this experience affected your perspective on work and money?

Johannes: I’ve spent my life chasing money, or rather I thought that more money meant more happiness. From the day I created added value with something I’m passionate about, money was no longer so important and has been flowing more than ever since.

Of course, this is also due to the industry in which I work. A restaurant or car dealer sometimes has a margin of 25% or more on their products, but with an apartment in the Allgäu region, you quickly cross the €200-300,000 mark. In this case, 25% is of course significantly more money than 25% on a car that costs €20,000. From these beginnings and the countless doors that have opened, there are now several limited companies and the number is growing every year.

FIV: Your transformation from the pursuit of money to what you describe as the most fulfilling job or hobby in the world is fascinating. Can you tell us more about how your motivation and focus has changed?

Johannes: I haven’t gotten up for money for about 3 years. I can organize my day completely myself, can do more or less what I want and enjoy every day that I can live out my hobby, now my job. Since then, the focus has always been on win-win situations. As long as I put quality before quantity and don’t try to squeeze every penny out so that it ends up in my pocket, things have been going extremely well ever since!

Do what makes you happy!

FIV: As someone who is now working for their passion rather than just money, what advice would you give to young people who are looking for a fulfilling career or hobby?

Johannes: Go into crafts! Art, crafts and a very few other professions are proven to make you “happy” because you have a creative process. You see what you’ve done at the end of the day. Also, with the current developments, heating laws and the biggest housing shortage the country has ever seen, it makes extreme sense to get into an industry that is part of the “real estate” economic chain. Yes, it sounds like a lot of work, especially for the “work-life balance generation”, but success is hard work in 99% of cases, and it doesn’t make you rich overnight. Even if the gurus on Instagram tell you that every day.

Plumbing, electrical and other trades requiring a master craftsman’s certificate will have no problems finding work for the next 20 years.

To the young people: Please stop comparing yourselves! Social media is 95% fake.

Everyone seems richer, no one works and everyone has a supposedly better life than you do. The grass is not greener on the other side, but where you water it!

Remember: everyone has their own pace! Not everyone has to be rich, not everyone can be rich and not everyone should have employees, be a boss or sell online courses from Bali on their PC. Above all, it is important to understand that we are not working towards a final point in life. Not a career point after which everything magically gets better. Not a relationship that works without work. The journey is still the destination and if you do something you don’t like every day, that’s fine for a while, but sooner or later you should do something that fulfills you, provides a roof over your head and you have enough time for family and friends.

Video tip #2 – Buy, renovate, sell your apartment!

First project 2023, very recent:

Personal flipping experiences: What should you look out for?

FIV: How has your personal journey in real estate flipping influenced you in terms of your values and priorities? What role does materialism play in your life today?

Johannes: Very, very little. Of course I buy new things from time to time, but cars, watches, brand-name clothes or anything else are completely unimportant to me. I primarily spend my money on travel and experiences. The question you should ask yourself when making major purchases is: if no one was allowed to see the item I really wanted to buy and I couldn’t tell anyone about it, would I still buy it or would I buy it to have an effect on those around me?

Money is a means to an end. Money is only valuable if it is used for something. A lever, so to speak. For me, it’s primarily buying my time back out of the system, traveling and wonderful experiences with a handful of important people.

FIV: You gave the impression that your journey in real estate flipping has only just begun. What are your long-term goals and visions for your future in this field?

Johannes: yes, absolutely! I’ve only just got going. There are a few things I’m working on at the moment. On the one hand, I will continue to flip 1-2 properties in the Allgäu with my father. In the other GmbH, I’m flipping larger projects with partners. YouTube will continue to be extremely expanded in 2024. A new company is currently being founded in the real estate software sector, which will make a huge impact on the market. We are solving a real problem and not just artificially creating one and then presenting the solution as a start-up. However, I can’t reveal anything more about this at the moment; you’ll find out in the spring on social media.

The 3-year goal is to flip Mallorca, again quality instead of quantity. Of course, this is also economically viable, but my primary aim is to have one foot back on my old island so that I can escape the cold weather in Bavaria from time to time and live on the island for a while.

FIV: Finally, what advice would you give to young people who are setting out to follow their own path and pursue their passions, as you have done?

Johannes: You have to be aware that you have to work for success. Dropshipping, affiliate marketing, smma or other entertaining business trends only work if you invest years of your time, diligence and work. Focus on one thing at the beginning! Not 7 income streams or whatever other nonsense is being spread. Every successful person out there has started a business and made it big over a few years. After that, you can diversify yourself and your attention. This usually happens all by itself because you expand your network accordingly and new opportunities are brought to you. To make the first big leap, you need laser focus!

FIV: Thank you very much, Johannes, for your insights and your inspiring story, your experiences. I can also endorse your focus on one thing in every respect. It was a great insight into the topic. Finally, our #3 video recommendation for your Fix & Flip entry!

Video tip #3 – Before and after! 😍 A Scandinavian dream!

This is how Johannes renovated! You can find more videos on Flipper Immo.