With deals so tight, should I focus on another business for now?

Question

In the past few years, flipping houses has been a major source of income for me, but deals have been so hard to find this year, that I've only flipped one house all year. Would this be a good time to shift my focus to starting a new business (like a home services business) to generate income, or should I just double down my efforts on finding flips? What are other flippers doing during this time?

Danny Webber · Answer

GC FOR SURE. I opened a construction company to keep my flip contractors busy in between jobs and now the construction company makes 3 times what the flip business does due to lack of deals.

Steven Foster Wilson · Answer

@Austin Works Seems like right now if you can become a GC, with an investor mindset, you will make truck loads of money!

Ive considered starting a construction company for all of the OOS investors, there is alot of money to be made!

Dutch Langley · Answer

We have run a GC firm for years...now only do our own flips, so not for hire anymore (yay!  Love not having clients any longer).  But if you know what you are doing the market is hot for companies that know how to renovate and do it well.  Lots of liability, training, insurance and work goes into it.  More than people realize, so always keep that in mind.  You might be better served to pick 3-5 things you know you do really well and hire yourself out as someone who does just those items.  Marketing it is easy...all you need is to get a few projects under your belt, get a written recommendation from them and post it.  Network...pass the news.  If you can keep the items to those 3-5 things that don't require permits and the corresponding insurance you can also limit your cost outlays as well as your liability.  You can then grow into a GC role if you wish but you will have put some time and experience into learning the craft.  Marketing it is easy...all you need is to get a few projects under your belt, get a written recommendation from them and post it.  Network...pass the news.

Steven Foster Wilson · Answer

Refferals will be your biggest, best, and free form of advertisement, so make sure you treat your clients well. Until that time, start calling different investment firms and tell them about your service.

Evan Polaski · Answer

@Austin Works, I am echoing the GC sentiment of others.  My wife is asked almost daily if we do design builds (we don't).  Additionally, my flipper friends left their full time job to pursue flips and have kept a reasonable pipeline, but also started doing client work.  The only question they get are "when can you start" from clients.  It seems like the diligence most home owners perform is:Who answers their phoneDo they respond with an estimate at allCan they start soon

So essentially, if you are responsive and professional, you can basically charge anything you want, it seems.

Ray Fisher · Answer

We had an investor call us about a couple of lower end rentals in serious need of rehabs. We talked , they made an agreeable offer. we accepted and  should close after the first of the year , There's always the one home you could live without. Class C_D properties, that will cash flow well.  We will have a few after the first of the year in Central AR Available.

Maurice George · Answer

By the way Austin, I think you can find some cash flowing rentals in southern arkansas like pine bluff area.

Maurice George · Answer

Hey Austin, do you happen to know a investor friendly title company in Monroe?  Thank you.

Klint Ruud · Answer

@Austin Works find people who flip homes in the area. Drive around neighborhoods, if you see a house with a dumpster outside of it, go knock on the door. Talk to real estate agents, and wholesalers see if they can refer business to you. Go on the MLS, find houses that are or were on the market that look like flips, contact the agent / previous owner. Network on BP, Connected Investors, FB.

Austin Works · Answer

@Greg Dickerson @Danny Webber @Klint Ruud @Evan Polaski @Steven Wilson I believe the GC route is right for me. However, I have no idea how to generate leads for this business, as I don't ever hear other GC's running ads etc. What is the best way to find my first customer?

With deals so tight, should I focus on another business for now?

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