One of the great things about real estate investing is that there are many ways to do it. Over the past few years, one of the most popular ways to make money is by flipping properties. This is the process of buying low with the intent of adding value through renovations and selling in a short amount of time. While this looks easy enough on TV, it is not nearly as easy as it looks in reality. The best flippers know that you have to work with the right people and have the ability to lead a team. Flipping is not for everyone, but there are some things you can do to make the process much easier.
Like most everything else you do in business, communication is the key. The most important person in any flip is your contractor. In order for them to do what you want you need to be able to convey to them exactly what you want, how you want it and when you want it done. This doesn’t mean you have to be a tyrant, but you do need to make yourself clear before any work is started. Trying to deal with issues after they happen is much more difficult than laying everything out beforehand. If you and your contractor are on the same page from the start, it will make the rest of the process as smooth as possible.
In addition to a good contractor, you need to make sure that you are comfortable with everyone else that will work on the property. Everyone from the plumber to the electrician to the painter will have to be scheduled and in some cases work around each other. You should always keep an eye on the bottom line, but sometimes that is not the most important thing. Working with someone you trust and you feel will work when they say they will is more important than trying to save a couple of dollars. In the big picture, it will cost you more if you have to schedule and reschedule everyone around them. Spending a little more to get the work done right and done on time will give you a much bigger reward when it is time to sell.
There are certain times and certain flips when you really need to rush to get things done. If you have a good team around you they will know the importance of finishing on time, but not every task should be a rush, emergency job. If you use up all your favors you will find that you won’t have them when you really need one. Sticking to a schedule is important, but not as important as business management and developing relationships with the people that will work for you. If you treat them fairly, they will work hard for you on future projects without being asked. If you crack the whip on every task you will end up looking for new help on every property you flip.
Flipping is done by human beings with real schedules and real feelings. Instead of creating an uncomfortable work environment, get as much out in the open as soon as possible. The more you can communicate what work you want, the more people will want to work with you.