House Flipping Business Model

[Tyler Judkins]

Hello BP members;

I'd like to get your perspectives on different business models that you have seen out there for those that want to flip houses.

I am in a very fortunate position to have an investor behind me that is willing to fund my deals and a great rate. He has no ownership and will allow me to keep all the profits I make.

I'm on my second home right now and I am finding that my time is completely sucked right out of me with all of the little things that need to get done when managing a flip.

For example, I do everything from finding the houses, buying the houses, hiring out contractors to do the work, keep track of the books, sell the property, etc. If you have done a flip yourself, you know that each of these tasks could be a full time job in and of itself.

I find that I spend the majority of my time dealing with the little things that come up during the rehab process (I'll spare you the details - but they are many).

My question is this - how to I scale this business so I can be more efficient? Do I partner with a contractor, a wholesaler, a realtor, etc.? Do I hire a project manager to oversee all of the little things? Do I engage a different contractor on each home and pay them a premium to take care of all of the details from start to finish?

I'm sure there are some successful models out there, and I'd love to hear which ones you have seen be successful (or that have failed). The guys that do 3 or 4 houses a month are not doing what I do - they have figured a system out and I would like to learn from the experience of others. Any and all input is greatly appreciated....thank you in advance.