Paying People From Flipping Houses

[Damian Gallardo]

So I'm looking to start a house flipping business in a few years, I just need to save up capital before I begin, and that's what I'm looking to do by becoming a real estate agent. Although there is more I need to learn and will learn, a question I have on my mind right now is how would I go about paying people that help me fix the house? Should I give them a percentage of the profit since they helped me raise the value of the house or pay by the hour? They would only be doing the actual labor work with me, but I'd be the only one actually managing the business. 

[Dakota Burkeen]

@Damian Gallardo Hey Damian, I'm also new to this real estate thing but I have learned a few things in my first deal. I would advise you to absolutely NEVER pay a contractor by the hour unless it is a very small job. I hired a Handyman hourly to level the floors in my first BRRRR property, $3000 later he managed to get them somewhat level. My advice would to be get a minimum of 3 bids on each job (plumbing, electrical, sheet rock, etc.). You shouldn't be paying a contractor a percentage of your profit unless you are partnering with them. Most likely the contractor will just want what he is owed and doesn't want to risk doing a job for free. Good luck with your real estate journey!