Should I leverage my flip??

2 Replies

Hello BP, I am coming toward to the end of my first flip property (so many lessons learned!) and the contractor is dragging his feet to finish minor repairs (light covers, clean the home, minor corrections, etc.). The biggest hold up is the vinyl siding being installed in the cold winter here in Chicago. The contractor says it’s too cold but siding companies told me they could and would install in the current weather. I don’t want to do a “coming soon” without a picture of the front of the house. Without knowing exactly when this property will be completed, ready for sale and how long it will take to get an offer, I was wondering should I leverage this property (I used HELOC to fund this property) and start looking for the next flip or should just wait until I sell this property first??

I wouldn't start thinking about the next property until you figure out how to do a better job of managing this one.  If your contractor is not finishing the job, find someone else who will.  You're going to have a lot of contractors who try to dictate a schedule based on what they want, and if you let them, you're going to find that you're not very successful in this business.

Focus on figuring out how to manage the contractors on this property before you worry about the next...

@Martin Neal I agree with @J Scott - finish the first one. When I bought my first property a good friend told me, "Control your project- or someone else will." He was saying to get a handle on the SOW and have all your contracts with the different trades in writing. And be firm. I have learned it is better to lose $1,000 and cut losses with a contractor, than to lose $10,000 and keep him around. 

Another suggestion, let your real estate agent know that your property is nearing the end of the project. Keep us posted! And hang in there...

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