Flipping Houses and Building Relationships with Sub-contractors
Developing and maintaining good relationships is essential to flipping houses successfully.Â My house flipping team of contractors, lawyers, real estate agents and various other people really are 100% essential to the success of my business.
Contractors in particular are an incredibly important piece to the puzzle.Â Having good working relationships with general contractors and sub-contractors is certainly an aspect of flipping houses that canâ€™t be overlooked.
Iâ€™ve read a lot of Napolean Hill and Dale Carnegie books throughout my business career, and I highly recommend that you check them out.Â How to Win Friends and Influence People, written by Dale Carnegie is all about how to create and maintain good relationships.Â The skills Hill teaches in his book are the same skills I use on a daily basis when interacting with my sub-contractors.
We are currently putting the finishing touches on a local house renovation, and Iâ€™m happy to say that things are going great.Â However we did recently encounter a little bump in the road with an electrical inspection.Â To put it simply, the inspector came by the property, walked around the house on his own, and found numerous areas in the home that he was not happy with.
As there are so many factors that go into flipping houses, the answer to this varies widely. Depending on rehabilitation cost, the cost can vary from hundreds of dollars to hundreds of thousands of dollars!
However, if you are flipping houses and determine that you may spend several hundred thousand dollars, you will want to be extremely clear on what the selling price should be. So in order to best answer the question of how much it costs to flip a house, its best to begin with the end in mind and examine the back end instead of the front end.
In order to figure out how much it will cost to flip a house, you need to know what you can fetch for the property itself when its ready for resale. When you know this, the other costs associated with the house flip will start to come into focus better.
One of the best ways to figure out ARV is by comparing similar properties that have sold in the same area in your target market recently.Â This is known as comps.
A local realtor can help you determine this very quickly, which is one of the reasons why [click to continue…]
It may be a bit messy but this property just wreaks of opportunity!
We just purchased this three bedroom single family home in Onset, MA and have thus far not done any work whatsoever to the home.Â If you are just getting into flipping houses then this post is a must read - you'll get to see exactly what condition most of the houses we rehab are in when we purchase them.
First thing I noticed about this home was the smell.Â The previous owners were big time cigarette smokers and it was apparent that they had no qualms about smoking indoors.Â On top of that, the smell was compounded by a reasonable amount of trash, rotting food and even fecal matter left over from pets.
However, that smell is really just the smell of opportunity!Â If you plan on house flipping for a living then it is inevitable that you will run into homes like this one.Â To be honest, this home is just the tip of the iceberg.Â Many houses that we flip are much more run down, smell even worse and are chock full of garbage.
It's these rundown homes that present the most opportunity for making a lot of money. Check out the video below to get a better sense of what I am eluding to.
An important house flipping tip is to remain open and flexible to new ideas and opportunities as they arise.Â Another great tip is to learn to be OK with unexpected shortfalls and when your initial idea doesn't peter out as planned.
Often times we scratch certain plans and ideas because they just do not end up making economical sense.Â The plan looks great on paper, but would end up costing more money than the value we would gain from that particular aspect of the renovation.
When I first walked through this particular house in Onset I had a great idea.Â To increase the potential market for this house I figured we could expand a narrow room on the first floor into a spacious master bedroom.
Having the master bedroom on the first floor would be ideal for a senior citizen or person with a disability.Â A first floor master bedroom would be super convenient for anyone who has trouble walking up stairs and is a nice house flipping tip to have under your belt.