Flipping is better done with a team. I am sure there are many out there who would vote for a solo act but then remember skills and experience are irreplaceable.
You can of course learn the tricks of the trade along the way to improve homes, but professionals are called so for a reason and there’s no harm seeking help from people who know their field like the back of their hand.
Read on to find out more!
Flipping is a Team Act
Flipping is not just buying, fixing, painting a house and then selling it. There are a whole lot of processes involved. It’s a business that requires planning, diligence, knowledge and passion. Having experienced hands onboard would only brighten your chances of grabbing good deals and guide you every step of the way.
So let’s look at how you can get on the right track to get these five members who can take the flipping plunge and be a successful real estate investor.
1) Real Estate Agent: An important team member to have by your side when in the flipping business, is a good real estate agent with the right acumen who will just help you find the right property to invest in, but also tell you what exactly you need to remodel or fix so that you can sell a house for a good profit.
Many starting out in the business often are hesitant to take the services of a real estate agent as he/she would charge you a 5% commission on the sale of a property, but you will not give this money when you see how his services are worth every cent that you give him.
2) Real Estate Attorney: It would be quite sad if you push the entire deal through and realize at the end how a small oversight could land you in legal trouble.
It’s easy to get tempted to dive alone deep, but then it is not necessary that you will know every legal term and legislation in the world. A real estate attorney who knows the local market will not only help you stay out of any legal tussle and at the same time advise you with your best interests in mind.
A good attorney is the person to guide you through all those documentations smoothly so that your transactions are quick.
3) Contractor: If you are planning to fix only the painting work, then a DIY route is not bad, but if the renovation you are planning for your property involves a whole lot of works such as carpentry, plumbing, electrical works, then you need one person who can oversee all this and who knows how to get the work done on a daily basis.
Without experience you might end up paying more for works thus increasing the cost of renovation. This could directly impact your profit margins.
It might look all rosy and meticulous when you watch videos of home rehab, but in reality home renovation is not a child’s play, it requires expertise. A marginal fee that a contractor will charge for this job is nothing as compared to the headache and heartache that day-to-day supervision of these home improvement activities can cause you.
4) Accountant: A certified public accountant should definitely be on your team. Get the best you can afford because he is the one who can help you wiggle out of all the tax burdens in the sector. The real tax laws are complex and it is important that you always stay on the right path.
A good CPA and a good attorney are those pillars that help you structure your business so that the right expenses are capitalized and the unwanted ones are weeded out before they harm you.
5) Insurance Agent: This is another team member who is indispensable in your business. Many real estate professionals overlook this aspect as they think they can do without it. But the fact is insurance is an expense in real estate investing that builds your reputation.
A credible insurance agent will study your business inside out, its structure, business plans and business goals and accordingly advises you how to insure.
Trying to figure out all on your own could be a disaster that you would want to avert.
Like any other small business flipping requires time, money, skill, experience and patience. Ignoring any of these could land your business in peril. Making a nice profit out of flipping is easier said than done and looks better in TV shows. A team of experienced professionals might cost you some money but they are definitely going to be your wheels to sustainability.