How To Flip Cars (Flip Nation with Ryan Pineda)(Part 2)

what's up youtube welcome to automotive life my name is lucky and welcome to a three-part series about flipping cars now we're doing this video collaboration with a local youtuber here named ryan panetta he's got a very cool channel i'll leave a link in the description down below he came up with this idea of flip nation now what flipnation is is he's showing people how to do different side hustles to make extra money to reach her ultimate goal now he started out wanting to do finance and real estate but it didn't have the money to purchase houses and do things like that so what he started doing was flipping couches on craigslist facebook marketplace buying them for cheap cleaning them up and selling them and showing people that you can do some side hustles to get to your ultimate goal and my story is very similar i started out basically buying cars from junkyards tow yard auctions from random people online just to fix them up clean them up and sell them until i was able to get enough money to get a shop to get a dealership and start my rental car company so this is a very great very unique series that i wanted to be a part of so part one is on his channel once again i'll leave the link in the description down below so this way you can go back there watch that one part two is what you're watching right now and part three the conclusion is gonna be also on ryan's channel we're gonna go away a lot of really great tips on how to get your dealer's license some of the pitfalls of being a dealer some of the hang-ups and all that really great stuff but what i really need you guys to do is smash the like button for the youtube algorithm because it helps me find more amazing people like you that enjoy this content also if you can click the subscribe button i truly appreciate it and once again ryan's information is down in the link below make sure you check out his channel and subscribe show him some love and let's get in the video okay if you watched the first video you saw that me and ryan were both at the auction making bids on cars unfortunately we did not win any of the vehicles sometimes when you bid on vehicles at the auction you don't find out till tomorrow if your bid was accepted or denied but good news is i had a backup plan i purchased a few vehicles last week and i had ryan come out here to the dealership and i told him to pick one so we have two vehicles from each category we have a fifteen hundred dollars and below and at twenty five hundred dollars and below we wanted to get something that everybody could manage to purchase or flip to get started nothing crazy nothing too expensive so the ones behind me are the twenty five hundred dollars and below category ryan picked the lexus i picked the ford focus so what we're going to do now is we're going to walk around the vehicles we're going to show you the insides and outsides of them we're going to talk about some of the things we need to fix some of things we need to check out we're also going to show you the recon and inspection process we're going to take you back there we're going to put the cars on the lift we're going to go through them we're going to make sure that one they're safe to sell we're going to go from safety back to emissions to make sure that we get all the emission stuff taken care of after that then we'll work on cosmetic just to see if there's any money left over and also you're going to be seeing me write numbers on the windshield what the numbers on the windshield represents is pretty much what we're into the car what i think we could sell the car and a few other things which i'll go into in another video once we start inspecting the vehicles but we're going to go through that from step to uh from start to finish to show you from buying to fixing than actually selling and at the very end whoever makes the most gross profit will have to pay a portion of that to the other person's charity so me and ryan have a bet going if i win he has to pay money towards my charity and if i win i have to pay a charity of his choice so let's go ahead and check out these two vehicles and let the best man win okay the first car we're going to start off with is the lexus like i said this is an 06 is-250 it does have a rebuilt title we're gonna go ahead and walk around it so the first thing i noticed we got a little bit of damage here which is not too bad tires are okay they're not great as we're looking down we see typical scratches dings dents nothing really major looks pretty good let's go ahead and look at the other side here we got a little bit of a scuff here which we can polish out right here we got a little place where look like somebody shot it with a bb gun and the paint came off this one's missing a wheel liner but not that bad the little ground effects here is a little scuffed up definitely need to polish the headlights but that's about it let's go ahead and check out the inside all right so the inside is actually in pretty good shape let's go ahead and fire it up and see what we got going on [Applause] all right this vehicle has sorry gotta wait that noise you hear right there is the blend or motor okay just had to restart the video because the blender was so loud but we're gonna go ahead and take a peek we have 180 000 miles we got the airbag light on traction control light vcs and we have the check engine light so once we pull it back in the shop we're gonna go ahead and check it out but everything else looks good we're gonna roll down the windows and everything else check it all out climate control is working right now the radio works so everything else seems pretty good we did drive it around the block a little bit so it actually went in the gear so it didn't bump it didn't buck it didn't do anything really crazy so i think we're good on that one so ryan definitely picked a good one with this one first thing we had to do is change the battery so i got to write that on the windshield um it's now got about a sixty dollars into it for that but that's about it everything else is working we don't see any leaks belts a little bit worn but nothing really major just needs a really solid detail i mean even the inside even though it's clean it looks the same way it's just all kinds of dust so even though you guys wash the outside of your cars you definitely need to wash underneath your hood as well so we just did the walk around and this is what i put on every single car so we purchased this vehicle for literally twenty five hundred dollars on the dollar okay that's what we're into the vehicle now usually what i put down here is i put what we think we're gonna actually sell it for so i looked online which i'm gonna show you a few screenshots probably here to your left or right take a second for those ones to hit and the average price was anywhere from six to seven thousand dollars so we're gonna put six thousand to seven thousand dollars now the reason i put these numbers here is to give us a way to work backwards towards our number now these are clean titles this car has a rebuilt title so we need to make sure that we're doing about i'd say about 80 of this 70 to 80 is a good number so that's the true value of this vehicle so we're going to work our way backwards so we know we got to make or what they sell for we know we're into it just in preliminary estimates i'm guessing we're probably going to spend close to about 500 that's about it in recon so i'm going to put the e for the estimate here and then i'm going put 500 for recon so and all figuratively if we spend three thousand dollars we should be able to sell it for about 55 to 6 500 and make a quick you know two to maybe three thousand dollars on this particular vehicle so ryan did a good job of picking this one well as we start to go through we're going to see what we have to put into it but right now just for me seeing this we haven't checked the check engine lights yet we're going to see where we're going to go from there okay guys this is the ford focus that i picked so if you're looking at it you're probably wondering why in the hell did you pick this focus over the lexus the lexus is a lot less work a lot less headache you know so as you can kind of see we got a little bit of a front end collision we'll kind of walk around and see now the good news is the damage is only to the front of the vehicle this is a titanium edition which means basically that is the top of the line focus got a little bit of scuffing right here we're gonna try to polish that out if not we're gonna paint it and blend it a little bit of scuffs here on the side no big deal here's most of the damage to the front end let's go ahead and pop this open so i can show you guys all right so if we look down here this is your radiator core support so we're gonna have to change that this headlight's obviously broken we got damaged bent hinges we got a little bit of damage to the pillar there this fender looks okay we're gonna try to repair the bumper we got a little bit of damage there but we're gonna see if we could fix it all in all looks okay motor's in good shape once again they've never washed the motor replace the hood paint and blend the front end should look pretty good let's go ahead and take a peek inside see what we got right the inside is very clean doesn't look too bad just covered in dust now when they got in the accident unfortunately you can see right here the seat belt is still stuck so we have to replace the srs module with this seat belt which is not that big of a deal just another cost let's go ahead and put the key in fire this thing up everything lights up everything seems to be working all right let's go ahead and take a peek low tire pressure so we have the let me zoom in a little bit so you can see the airbag light there and the seat belts so that's letting us know that our srs light is bad um also we have a brake lamp default let's go ahead and okay hoods open obviously we know that because it's smashed driver's door is open because i'm actually hanging out of it so we're sitting at 113 000 miles all right let's check the transmission i'm going to put it in the drive here all right rolls forward put it in reverse rolls back no problem back up camera works no bucking no shifting now these ford focuses do have a lot of problems with the transmissions so if you ever buy one of these you got to make sure it's actually at temperature while it's driving and put it in the gear and make sure that you have pressure to drive because usually once these things get hot you lose pressure and you can't drive them but all in all this seems pretty good we're going to go ahead and bring these back to the shop and we're going to put them on the rack and we'll see what we're working with all right on the ford focus we spent a total of 2 575 we had to pay the uh fee for the auction so that's what we're actually into it the lexus unfortunately or luckily we're out 2500 on the dot this one's just 75 more so this car i looked online and these ones were going for about i'd say close to seven to eight thousand dollars so we have you know a pretty decent margin but i'm guessing we're probably going to put an estimated repairs of at least 16.50 so if you can see the gap once we add these two numbers up even the gap from what we're going to get for retail is quite significant but as we start building this out you're going to see i'm going to start writing more and more every time we buy something every time we fix something every cost is going to go on this chart and as we get down to the very end i'm going to hit the stop hold where i'm going to say okay this is the gap of profit margin we need to make if we can do this and fix the car we'll fix it and we'll sell it this is the most important thing you need to learn because too many people focus on this number and they don't focus on the numbers in between and what i mean by that is if you start looking at a car and let's say you get into this gap where your profit you need to make fifteen hundred or two thousand dollars per car i'm talking about dealership wise but flipping if you want to make 500 to a thousand dollars that's your margin but you don't want to spend two grand on a car and a thousand dollars in repairs to make 350 so if you get to this point where you're creeping up next to this number you need to just get rid of the vehicle don't bother fixing it it's better to move on get another one and start the process over but this is what we're looking at the ford this is what we're looking at the lexus so the numbers are pretty close to each other so i think this will definitely be a good explanation so once we are assuming that explanation demonstration so what we're going to do is we're going to pull these two in the back of the shop right now we're going to put them on the lift and do a very thorough inspection and we'll see how close my numbers and guesstimates come to what has to be done okay guys we just pulled in the ford focus we checked all the fluids made sure everything was good topped everything off and then we let it run for about 20 to 30 minutes to make sure there was no leaking it wouldn't overheat we looked underneath there was no uh quote leaking out there was some front-end damage so we just wanted to make sure that that was okay so what we're going to do now is we're going to walk by we're going to do another visual inspection around we're going to close the hood and we're going to take it for a test drive after the test drive we make sure everything is good there's no issues we're going to go ahead put it up in the air do one more visual inspection all the way around the vehicle just to make sure there's nothing major that's going to cost us money that will lose money on this vehicle once that's done then we're going to start to phase two which is we're going to do a tear down we're going to take the hood off the front end off and we're going to see what's damaged because right now obviously we know the hood and the headlight is broken but also this core support right here is damaged as well so we just want to take this all apart just to make sure that nothing else is hiding here behind the front bumper go through it and then once we have all that together we're going to order parts and we're going to get our numbers together and see exactly how much money we are going to put into it fantastic started right up like i said we did made sure that it ran the whole time we didn't uh go over our temperature gauge which you can see there it stayed in the middle i'm going to check the warning lights one more time um we have our scanner plugged in just to make sure that we don't have any issues if we're driving if it locks out the transmission goes into limb mode we have everything covered so let's go ahead and pull this thing out okay guys i just wanted to kind of give you a heads up on what i look for when it comes to test driving these vehicles so um you can't see it because it's not a picture but i have my scanner sitting on my lap that i'm looking at the numbers to make sure that you know everything is working correctly the transmission has enough pressure fuel pressure is good so i'm just right now feeling for any type of vibration because like i said this one was in an accident so i wanted to see if there's anything loose in the front end but so far everything seems really good suspension seems tight steering seems tight we're going to go ahead and stop for a second you always want to stop kind of abruptly oh yeah um make sure that you know you don't get any kick down from the transmission we're going to go ahead and we're going to put it in reverse i'm going to reverse here backup camera's still good all right put it in drive made sure that okay there's no bucking anything like that all right we're gonna go ahead and do a hard acceleration [Music] feel the horsepower all whatever i think it's like 98 horsepower something hilarious but it's actually a really nice car smooth ride picks up pretty good runs smoothly so now that it's past this part we're going to go ahead and pull back into the shop and get started on lifting it up in the air and doing the underneath inspection okay guys we just took off the front end we got the uh had to pull the frame a little bit here this is the new radiator support we bought for a hundred and i think two dollars so now the headlights can actually bolt up to the front of it let me see the old one you can see the old one here we have the bracket that goes across but if you look at this side this one is actually broken so you know it's not much we could have mickey moused it but for a hundred dollars we want to make sure that we actually do it right so now we're gonna check and make sure you know that the the bumper reinforcement is still straight it's not smashed we had a little bit of damage here but it's no big deal we're gonna pull that out everything looks good there's no leaks here's the bumper if you look inside there's usually like brackets and webbing you gotta make sure that's not broken which everything looks intact so we're good to go we're just gonna have the body guy finish that out so once we put the bumper back on we'll take a picture and test the fit all right guys we uh put the new core support on we're going to go ahead and fit the bumper to make sure that everything's lining up that we got pretty good gaps the whole way through it's looking pretty good we got that little bit of damage right here which we're gonna hit it with the heat gun and see if we could straighten out if not we're gonna have the body guy repair it so we could save a hundred bucks on the bumper but this side looks pretty good obviously we're gonna have to repair this dent that's no big deal so what we're gonna do right now is we're gonna go ahead and we're gonna lift it up because if you remember actually let me uh i'll probably start recording after this because it probably sounds hella loud with the motor okay sorry about that motor lifting up but if you look right here this little thing this is your sway bar link the bushing basically popped out so we felt a little bit of shimmying when we did our test drive wasn't too bad but we wanted to make sure that we looked underneath so we don't see anything there we looked all the way underneath which i'm going to lift it up just to kind of show you guys all right guys we're looking underneath right now we're going to go ahead and kind of check and like i said we don't see really any leaks just a lot of dirt debris so when you look at the accident we're looking at the radiator support here there was no damage here on the bottom everything looked pretty straight pretty clean you know we look up towards the top of the radiator support we don't see any damage it was just the top part that got bumped a little bit of wear from the fender liner so we're going to trim that off and clean it but if you look the kind of the whole way down no damage not a whole lot of stuff so it looks pretty clean so what we're going to do is we're going to replace the one sway bar link that's there and then put it on the road and see how it drives so here is the other half of our flip challenge these are the vehicles 1500 and below on the left here we have a 2007 ford f-150 with about 250 000 miles it runs and drives transmission feels a little weird so we're gonna have to check that out when we get it in the shop um we're into this vehicle fifteen hundred and fifty dollars with buy fees and everything on the other side we have this 98 toyota rav4 it runs and drives good ac blows cold it's only got 150 000 miles but it was running a little rough when it ran across the block so we're gonna have to check that out and see what that is so we already kind of know what's entailed with these vehicles so now we need to save as much money as we can in the recon section so we'll go ahead and pull both these cars out back and go through the throw inspection let's get into it okay guys we just brought back the toyota we went through everything checked all the fluids walked around and made sure all the bolts were good on the lug nuts they were tight tires are in good shape we let it run for about 20 30 minutes right now there is no leaking oil or water it sounds good we don't have any issues so far so what we're going to do is we're going to close the hood and we're going to go out and take it for a test drive once we take it for a test drive we're going to put it up on the rack once again look underneath it make sure there's no major issues and then we're going to start ordering parts and getting it ready for uh sale okay guys we're getting ready to go for the test drive i could feel a little bit of shaking so it's definitely gonna need a motor mount or something like that um i put it in drive it rolled forward no problems we're gonna go ahead and put in reverse same thing no bucking a little bit of vibrating from the motor mounts no big deal we had to put in drive so as i was pulling out of the parking lot i felt a little bit of a clicking or assuming he heard a little bit of a clicking sound and i think it's from the axles so as we start to speed up we're going to watch and see what happens so right now the trend is shifting smoothly you can see the tachometer here no problems so far so good feels pretty strong suspension feels good let go of the wheel a little bit pulls a little bit so it definitely needs an alignment but nothing major let's go ahead and do the uh turn here i want to see if we can actually get that clicking sound going i don't know if you guys can hear that on the camera that's basically an axle clicking so once we put this on the lift we're gonna roll up uh uh roll up the lift and then we're gonna look underneath and i guarantee you one of the axles if not both of them are bad or have major play in the u-joints so we're going to check that out but so far it feels good under acceleration didn't slip anything else runs really smoothly pull into the parking lot and turn again you see if you can hear it all right we finished the repairs now it's time to clean her up get her ready for uh sale here so i do this on all my cars i always make sure if you're gonna sell it clean the hell out of it so they're going to do the outside they're going to clean the motor wheel wells also clean out the inside let me show you the inside look at that even though this car is going to be about 3 000 bucks it should look like a million bucks when you go to sell it okay guys we're pulling out of the shop but as soon as i started driving i felt kind of a stuttering hesitation so i think there might be an issue either with uh maybe low fluid or the torque converter is locking up because it died twice on me so i'm gonna go ahead and drive it and see how it feels okay i can feel it right now it's it's like surging so it's probably gonna be either low in fluid or torque converter but it feels more like torque converter right now so we're gonna have to check it out with the uh scanner when i get back i forgot to bring it with me let's just go ahead and flip the u-turn here let's go ahead and stop right here real quick sorry for the lights this thing's got 200 something thousand miles all right we're gonna do a hard acceleration okay picks up really quick upon hard acceleration the transmission doesn't stutter so i'm gonna check the torque converter in the fluid once we get it back to the shop but i'm gonna take one more lap just to see how it's actually driving real quick and then we'll pull it up there and we'll put on the lift here's the f-150 we had to get underneath so in the other videos you saw that the torque converter was locking up so you took it out here the two torque converters obviously that's the old one that's the new one right now we're always filling it full of fluid you always make sure your torque orbiter's full fluid before you stick it in there and instead of pulling it all the way down they just disconnected it let me kind of go underneath there and show you so we're going to put it back in um take it for another test drive scan it and make sure everything's okay okay guys i apologize for the wind and noise but the very last thing you do after we wash it we got it cleaned up we're ready to put up for sale we try to find something with a decent background so right now i got it on camera mode so you can see the building behind but if i kind of zoom back out this is the way you're going to see it in the pictures we want like a nice clean background we don't have anything around it so i'm going to zoom back out you don't want anything around your car no garbage you take some good front side corner angles so i'm going to stop right here take another one take one again from the back from the sides you pretty much go all the way around the car obviously you know i take motor pictures because i detail the motors i make sure they're clean you know take some close-up pictures of the tires show people that the tread wear is good you know show pictures of the seats let's go ahead and unlock it here real quick you know show people pictures of the seats show them how clean it is in here lexus is all cleaned up we did some polishing we decided not to touch up some of the damage in the front with the scuff marks and everything else but we did polish it out a little bit um the good news was this one was only a transmission filter seal and a few small gaskets so it's not that bad i'll give you the price breakdown at the end but it runs and drives good just past smog we just got it cleaned up and like i said we're taking pictures now to put it up online we got the perfect setting looks good here's the focus we just got out of paint we just got it detailed up if you could see the gaps are pretty good even all the way across front ends looking good look around here sorry about the glare so we got the front end painted with the little dent on the side everything was about 300 bucks for paint and another 50 bucks for bodywork so we're about 350 all in plus i don't know if you remember we had that scuff that was on the side right here we had him polish that out so now it looks really good so we're going to take some pictures put it online and i'm going to go over the final numbers at the end of the video wow guys we just started editing the video and we have over two and a half hours of footage so i'm gonna try to whittle this down and save a lot of time with giving you guys the numbers off the sheet but before i do i wanted to let you guys know that when we started finishing these cars i had ryan post them up and take calls and messages for these so i'm gonna show you a few clips of what he was dealing with right now no no we don't do payments just cash man nope no trades you know i i don't need a ps5 no i i don't want the honda civic uh 250 000 miles a bit too much for me and i don't think the uh cell phone or the iphone 12 is going to make up for it i mean you got to come and see it if that's what you want to do so there's just a small glimpse of what we have to deal with when we sell cars now i love this business but the crazy people you got to put up with are hilarious you get some weird offers people trying to trade you all kinds of crazy stuff so it's definitely something funny to be involved with but let's get into the numbers i'm going to tell you guys exactly how much we spent per car how many times we showed it and what it took to actually sell the vehicle so with the lexus is 250 we purchased the vehicle for 2500 we put a sixty dollars in the battery we put a hundred and ten dollars into spark plugs and boots um we put another eighty eight dollars into transmission fluid and filters thirty five dollars for detail which gives us a grand total of two hundred ninety dollars for parts with the total investment into the vehicle of 2798 now we post this thing online on offer up facebook marketplace and a few other things just to see what kind of bites we get now we showed this car which was the most shown 14 times half of the people were tire kickers we had some crazy offers but we winded up selling it for about 4 300 now we posted it for 49.95 and people just kept offering us you know like two thousand dollars three thousand dollars but we got it for forty three hundred dollars so that gives us a total profit of fifteen hundred and two dollars on that vehicle the next one is the ford focus my vehicle we purchased the vehicle for twenty five hundred and seventy five dollars we have a total of two hundred and ninety dollars for body parts which includes the hood bumper core support headlight um we spend a total of 350 in paint 175 dollars for seat belts because remember the seatbelt adjuster was broken and another 20 for the sway bar link and 35 dollars for a detail which gives us a grand total of investment in the vehicle of three thousand four hundred and forty five dollars now there was no titaniums online i looked in vegas california phoenix it's a rare model some of them were like insanely priced at like 12 grand some were priced lower we weren't really sure where to put it so i put it kind of in the middle i put it at 79.95 and just threw it out there just to see the very first person that saw this called us drove all the way down gave us seven thousand dollars cash out the door so after we minus expenses we have a total of three thousand five hundred and fifty five dollars in profit next car is the toyota rav4 we showed this vehicle a total of seven times we had fifteen hundred dollars of original uh investment we put three hundred and forty dollars into it we did spark plugs timing belt motor mounts and one of the axles and of course the detail all in we were eighteen hundred and seventy five dollars now we posted this vehicle for thirty five hundred dollars there was a lot of them online but ours was inside was very very clean we had a little bit of fading on the roof which wasn't too bad but we wanted to kind of make our stand out so what we did is we posted it up for thirty five hundred dollars and we sold this vehicle for three thousand dollars which gives us a grand total profit of eleven hundred and twenty five dollars now the next vehicle is the ford f-150 now this one was a little bit of a headache because we took the pictures and for some reason it wasn't really uploading online correctly and we had a lot of tire kickers and people blowing us up on the thing but i actually ended up selling it to a client of mine but the ford f150 the original price was fifteen hundred fifty dollars invested we put four hundred and ninety five dollars into parts which includes air filters spark plugs transmission filter fluid gaskets along with a few of the seals the torque converter and a few other miscellaneous parts 35 dollars for the detail which gives us a grand total of 2080 dollars invested into this vehicle now we listed it for about 39.95 because like i said the truck does run great but it did have almost close to 300 000 miles and this one like i said we had a lot of problems uploading it online we had a lot of people like wasting our time with stupid bids and and lowball offers and stuff i wound up selling it to a client of mine that owns a landscaping company he came in paid all cash he gave us 3 600 no problems no headaches no no fussing just like hey give me 36 it's yours and it was done so that gives us a total profit of fifteen hundred and twenty dollars so if you add all those things up like i said we did really good you know some of the cars we made more on what we thought some we made a little bit less but overall this should give you guys a really good glimpse into what we do when it comes to flipping cars now like i said i do way more detail on some other videos if you guys want to go ahead and go back and watch those and we're also going to go into some more detail once we actually get to the third part of video when we're sitting down in ryan's office going over like i said how to get your dealer's license and everything else and then we'll go over exactly who the winner is and then we're going to talk about which charity we're going to donate our money to so once again i want to thank you guys so much for watching if you haven't already please smash the like button if you've learned anything also subscribe i post great content like this all the time also in the link down below i'm gonna put ryan's information please once again watch his videos subscribe help another support another local las vegas youtuber and without any more shameless plugging i want to thank you guys again so much and we'll see you next video

Channel: Automotive Life

Views: 46,493

Rating: 4.9852242 out of 5

Keywords: flipping cars, flipping cars for profit, flipping cars from auction, flip nation, ryan pineda, graham stephan, Automotive life, lucky lopez, buying cars at auction, cars, auto, automotive, ferrair, lambo, lamborghini, mercedes, flying wheels, auto repair, car repair videos, car repair, make money online, selling on facebook marketplace, selling on offerup, las vegas, youtubers, youtuber, vehicle virgins, life of palos, samcrac, flipping cars for cash, flipping cars on craigslist

Id: JWdbNzjhWjk

Length: 30min 29sec (1829 seconds)

Published: Fri Feb 12 2021