3 Simple Steps to Building Your House Flipping “Power Team”

by | BiggerPockets.com

For most people flipping houses is not a solitary venture. My house flipping power team consists of contractors, lenders, a secretary and even a couple wacky website guys.

Actually just about everyone on my team is a little wacky, which might be why we work so well together. Whatever the reason I would be pretty lost without them.

I’m really fortunate to be surrounded by such great people. Yet I will admit that my network did not come together overnight. It took some time for us all to find one another, mesh and learn to work together.

There were some bumps along the way.

In this post I would like to share how you can build your own house flipping power team. My strategies, which are actually more like observations, are just based on my personal experience.

However I think many veteran investors here on BP would probably agree with the below pointers.

How to Analyze a Real Estate Deal

Deal analysis is one of the best ways to learn real estate investing and it comes down to fundamental comfort in estimating expenses, rents, and cash flow. This guide will give you the knowledge you need to begin analyzing properties with confidence.

Click Here For Your Free eBook

How to Find Power Team Members | Network and Do Most of the Listening

Real estate networking events can be a power team building gold mine. So can other events and places like BNI, Chambers of Commerce, grocery stores and virtually anywhere people gather.

To get the most impact from your networking efforts, be sure to focus more on listening instead of speaking. Spending more time listening than talking is important because:

  • You will learn more about the people around you, and how they could help your business
  • People will like you for listening to what they have to say
  • You can eat more shrimp and cheese & crackers without worrying about having to talk

I met my electrician and one of my general contractors at a weekly BNI networking event I attend every Friday. I listened to them talk about their kids, dogs, hobbies and business every Friday, week in and week out.

We essentially became friends and wouldn’t you know a few months later I needed an electrician to help me with a new and challenging project. Not long after I needed a trustworthy general contractor to manage an entire rehab.

You could meet your power team members anywhere and at any time. Just be sure to listen, because if you do all the talking you may never know how potentially valuable that person could be to your business.

How to Make Money Together | Communicate and Communicate Clearly

In some ways flipping a house from start to finish could be considered an art. There are many moving pieces to the puzzle, that all have to fit together in order to turn a profit. The price you paid for the house, rehab costs and the after repair value all have to make sense.

The way you communicate with your house flipping team has to make sense too. If you do not communicate clearly with your team, money will seep out of the project and your profit will diminish.

Here are several consequences of poor communication among a team:

  • Missed deadlines in the rehab process
  • Last second fixes
  • Angry sub-contractors
  • Frustrated general contractors
  • I could go on…

The above consequences eat up your profit margin because they slow down the project. Time is most certainly money when flipping a house. A difference of just a few days can cost big, especially if your holding costs are high.

I always sit down with my general contractor and sub-contractors before the rehab begins, and I give them the inside scoop on the project. I show them my budget for the project, and explain exactly what I need them to do.

We go through the process together, and once we are all on the same page I have them sign a document stating they understand their role and commitment.

This holds everyone accountable for doing their part, including myself. People know and understand their roles, and they agree with a signature to perform them.

Clear communication keeps my team on the same page and helps us all make more money.

How to Build Wealth Together | Grow as Individuals and as a Team

People and situations change. Try as we may, it is impossible to prevent things from changing.

However, we do have 100% control over how we choose to deal with change.

A few years ago I was working with a sub-contractor. Our working relationship was going very well. I provided him with steady work at a fair price. In return he was always on schedule, remained at or under budget and demonstrated superb craftsmanship.

I was pretty surprised when he told me, out of the blue, that he could no longer work with me. He had found a more lucrative career opportunity and his life was changing at the speed of light.

Instead of getting upset I wished him well and simply went about finding another sub-contractor.

3 years later the same guy who picked up and left on a whim is referring me deals left and right. Turns out he spends a lot of time on the road for his new job, and he is always noticing abandoned homes which could be a potential deal for us.

The fact of the matter is that team members come and go, but they also go and then come back again later.

I think being OK with change and choosing to deal with change in a positive manner is the key to building long term wealth together with your team.

Each person on your team has their own life path and together you can all help one another achieve their goals and dreams.

If you’ve made it his far, please leave a comment below! How have YOU built your real estate investing team?

Please leave a comment below and let me know what you think!

Photo: Corey Bond

About Author

Mike LaCava

Michael LaCava is a full time real estate investor, house flipping coach and the President of Hold Em Realty located in Wareham, MA. He runs the website House Flipping School to teach new real estate investors how to flip houses and is the author of "How to Flip a House in 5 Simple Steps".


  1. Communication is key, especially when what needs to be said might not be pleasant. Speaking for myself, this is an area I am trying to work on. I am either really nice or an absolute…arse and it’s the In between that is an art when trying to build a team of rockstar rehabbers.

    • well said Bret. The good thing is you recognize that and make a plan to improve how you react. Thanks for your comments. Take a moment when you feel like you need to you yell and try to get your point across so the other party agrees based on the merit of the complaint. Most will agree to rectify the problem and of course thank them for understanding.

  2. Michael,

    I couldn’t agree more with this article and it couldn’t have come at a better time as I am trying to build a solid team as well. Especially if you are new to flipping and you’re trying to manage so many angles at once, you must have a team set up that can allow your business to run like a well oiled machine. I’ve learned myself that the most valuable tool in this game is “listening.” Thank you for writing this article!


  3. Sharon Vornholt

    Mike – What a great article.

    You learn so much when you are able to “shut up and listen” to what the other person is saying. This is so hard for a lot of folks to do. I also love the fact that you talk about meeting with your contractors, going over everything and having them sign paperwork stating that they understand and are in agreement with what is expected of them.

    I have one question; do you have penalties for not finishing on time?

    I also am in complete agreement with never burning bridges with people. Folks will often come back into your life after a period of time, and you will have a very good but different or new working relationship with them.


    • Hello Sharron – Constantly refining this process. We have talked about it a few times along with offering a bonus for getting done early. We have not actually implemented it though. Just the mention of it to a few of our contractors has seemed to help meet the time lines better. I do think if you are going to impose late fees you should have a bonus for getting done early as well.

  4. Your team is imperative, but it’s never finished. New specialty contractors are always needed. Financing that once was available goes away. Lives change as well as business goals and the types of projects being pursued. I’ve mostly been a buy and hold type of investor, but when the time is right I’d like to do more rehab work. At first I see myself doing the general contracting and some of the work. I’ll contract out more as I find contractors I can trust at the right price. Networking is something that I’ll need to work on to build relationships with local investors and financing options.

    • Thats a good approach Alan when getting started and one I did myself in the beginning. If you have a full time job this may be difficult for most to do so its even more important to have a great contractor to run the job for you. Networking and belonging to other community groups has helped me find many contacts that I know like and trust to do business with.

  5. I’m wrapping up my first rehab so I don’t have firm teammates yet but I believe that taking action helps present you as someone that is serious. When I was trying to wholesale it was much harder to get people on my team. Now contractors, realtors, and other investors want to be a part of what I’m doing. I’m excited about the progress I’m making and look forward to building my power team.

      • Mike, I’m just working on finishing up this current rehab. No other deals in the works. When talking about a team, it would be great if I had an acquisition team in place. This is my first fix and flip so a lot of hands on this go round.

        • thats great Con. I would love to hear how you make out on it. Where are you doing your rehab? I didn’t have an acquisition partner in the beginning so don’t worry about that. When you get to a point when you want more deals than you can bring in yourself then that is when you will add to your team for bringing in more deals.

  6. Great article as always Mike.
    Definitely share this philosophy but you made some goods points and ideas I hadn’t thought of before.

    BTW love the picture.
    Even though you had good things to say I’ll guess that contractors aren’t represented by The Flash. 🙂

  7. I love articles that just cut to the chase, are the basic nuts and bolts and are not too wordy. This article definitely does that! Thank you so much.

    But, I think you forgot to attach a copy of that contract you make your contractors sign … 🙂

    Thanks for the great article!

Leave A Reply

Pair a profile with your post!

Create a Free Account


Log In Here