Building Your House Flipping Team
How to Flip Houses / Building Your Team
Overview
Building a team of knowledgeable real estate professionals can save you time and money, and provide valuable mentorship for you and your company as your start your new house flipping business.
In this lesson, we will discuss the process of building a team, and discuss the team members that you should consider adding to your house flipping team.
Building a team of knowledgeable real estate professionals can save you time and money, and provide valuable mentorship for you and your company as your start your new house flipping business.
In this lesson, we will discuss the process of building a team, and discuss the team members that you should consider adding to your house flipping team.
Do I Need to Build a Team Right Away?
The short answer is NO, you do not need to have all of the pieces in place before you buy your first flip.
When you first get started flipping houses you may find yourself doing all of the work yourself. You will likely be a 'jack-of-all-trades' owner that is finding the deals, managing the projects, and handling the bookkeeping. And that's fine!...
However, if you truly want to scale your business, and save yourself time and focus on the things you love and are passionate about, you need to outsource work to other professionals or delegate tasks to employees.
TIP
One thing to remember is that building a team is a process that takes time. You won't have all the right pieces in place when you first get started, but continue to network and build-out your team as your flipping business grows.
What Team Members Do You Need on Your Team?
- Realtor
- Contractors
- Lenders
- Wholesalers
- Project Managers
- Bookkeeper/CPA
- Title Company
- Business Partners
Realtor
One of the first and most important professionals you should consider adding to your team is a Realtor. A Realtor will be a valuable asset to help you perform market research, walk-through properties & ultimately write/negotiate offers.
- Market Research - A Realtor can help you perform your initial market research to determine the best neighborhoods that are ripe for flipping. They can also provide access to the MLS, so you can review recent Comparable Sales Data and establish property values in your area.
- Walk-Through Properties - A Realtor can get you access to properties listed on the MLS, so you can walk-through prospective deals, and also checkout the competition's completed rehabs.
- Write & Negotiate Offers - Once you find a prospective deal, a Realtor can ultimately help you craft an offer and negotiate the purchase with the Seller.
How much does a Realtor cost?
The great part about working with a Realtor on the buying-side is that the Realtor's commission is generally paid for by the Seller of the property, which means working with a Realtor costs you nothing upfront!
However, when you sell the property you will generally have to pay for both the Buyer's Commission and the Seller's Commission which is generally 3% each (6% total) of the sale price.
Contractors
Finding deals will be your biggest challenge. Your 2nd biggest challenge will be finding high quality, reliable, & reasonably affordable Contractors.
You could have an abundant supply of profitable deals in your pipeline, but if you don't have reliable, quality Contractors to rehab your properties then you might want to consider 'Wholesaling', because you won't make any money flipping houses.
In order to be successful flipping houses, you need to find Contractor's that can provide quality craftsmanship, that show up to work everyday, stay on-schedule and work within budget.
Unfortunately, in today's market, there is a shortage of Construction professionals. The best Contractors in the industry are (rightfully) booked for months and are charging top dollar.
The truth is, you will probably go-through a handful of Contractors before you find that special Contractor you meets all 3 criteria (high-quality, reliable, & affordable). Once you find these Contractors, you need to treat them like royalty!
Learn more about How to Find Contractors in Today's Market (coming soon)
You could have an abundant supply of profitable deals in your pipeline, but if you don't have reliable, quality Contractors to rehab your properties then you might want to consider 'Wholesaling', because you won't make any money flipping houses.
In order to be successful flipping houses, you need to find Contractor's that can provide quality craftsmanship, that show up to work everyday, stay on-schedule and work within budget.
Unfortunately, in today's market, there is a shortage of Construction professionals. The best Contractors in the industry are (rightfully) booked for months and are charging top dollar.
The truth is, you will probably go-through a handful of Contractors before you find that special Contractor you meets all 3 criteria (high-quality, reliable, & affordable). Once you find these Contractors, you need to treat them like royalty!
Learn more about How to Find Contractors in Today's Market (coming soon)
Lenders
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Building
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Partners
Title Company
CPA/Bookkeeper
Wholesalers
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Wholesaler's are
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Places to Find Team Members
BiggerPockets.com
Bigger Pockets is the largest real estate social networking platform on the web, and it can be a great place to meet other real estate investors around the country and in your area. Their online forums give you an opportunity to discuss your market, ask questions and get mentorship from thousands of house flippers, that are more than willing to share their knowledge & experience with the community.
REIAs
Real Estate Investing Associations and Groups provide monthly meetings that offer networking opportunities and educational speakers to learn about real estate investing in your area. Generally, there is an hour of networking before the meeting which gives you a chance to 'talk shop' with other local investors, & network with wholesalers that may have deals in your area. After the 'meet-and-greet', there is generally an educational speaker that presents on various real estate investing topics. You can find your local REIA group using the link below:
https://nationalreia.org/find-a-reia/
Real Estate Meetups
Real Estate meetups are similar to REIA meetings except they are a generally smaller groups, a little less formal and meet at small venues such as a coffee shop or local small businesses. Meetups offer a decent alternative to REIAs because they are more intimate and personable setting than an REIA meeting. You can use meetups to network with other investors, meet wholesalers, find deals and discuss strategies with other like-minded investors. There will likely be multiple Meetup groups in your area, log-on to Meetup.com and find the groups that best suit your business strategies and business goals.
https://www.meetup.com/
Home Depot/Lowes
One of the best places to find contractors for your project team is at Home Depot or Lowes. Now we don't recommend using Contractors that work directly for Home Depot/Lowes (generally, the Home Depot/Lowes service contractors are more expensive & get bad reviews).
Go to your local hardware store early in the morning when the store first opens and you will find the 'early-bird' contractors. If a Contractor is at the hardware store early, that generally means they are getting to the job site early, which is a good indicator that they will be reliable & timely.
