I have a question for people that successfully flipped many homes. I am a real estate agent, and been buying and renting successfully for some time now. I am interested in doing my first house flip, but don't really have or use the same contractor for anything. I usually go on various advertising sites, take my time to find the best quote and the best quote gets the job. Now I was looking through some of my hand picked properties yesterday, and saw a beautiful 1920's colonial that needs professional restoration, at a great price, where I think a flip is the best way to go. I don't have any friends in construction, so anyone that is using long term contractors, please feel free to share how you found them and is it still a successful venture?
@Vasyl Magura good question! I am and agent and investor; flip to purchase rentals. The number one rule in house flipping, in my opinion, is having a team in place before you buy because time is money. If you do not manage the project properly time can eat away all your potential profits. Before you start, you need to know your investing personality and flip criteria. For example, my husband and I would never even consider the property you are looking at because that does not fit our criteria because of the age of the home. Older homes have more risk, in my opinion, because things may not be level, you many not be able to use standard/bulk items, specialty items cost more, you need to create a space that matches the house period, and the potential pool of buyers who desire older homes is smaller (at least in our area). Now, I am not saying don't do it. All I am saying is understand what you are comfortable with and know your teams ability. I know how long it takes my guys to do a bathroom. When I price out my flips, I have it within a few thousand dollars (without any surprises) because I know what my supplies will cost. With older homes you also want to make sure they are not in a historic district because that is a whole other set of problems. I built my team by word of mouth and getting to know them and to see if our personalities would work. I had my team assembled and ready to go before I ever put in my first offer.
I hope that helps! Good Luck!!! I love Ohio!
I agree, trying to find the right team is the most important.
I see your point on older homes, but in my opinion location matters the most.
Definitely passing the deal up this time, net working to get a team in place. Never flipped a home, so first time might not be the best.
Thank you for your response.
@Vasyl Magura Going to local meetups is a great way to find contractors!
@Grant Rothenburger like real estate investor meetings?
@Vasyl Magura Yes! You can find them on the events tab here on BP. As well as meetup.com
@Grant Rothenburger thank you :)
@Vasyl Magura You're welcome!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing