Slash Time NOT Quality | My Top 3 House Flip Time-Saving Secrets
The house flipping business hinges heavily upon time.
Shorter timelines generally equate to greater potential profits for the majority of house flipping businesses. Longer timelines typically mean less profit upon the final sale of the home.
Thus in the house flipping business, time is an important concept to keep in mind. When developing your personal house flipping business plan, be sure to make time a top priority.
Ideally the house flipper wants to minimize the amount of time it takes to flip a house, without sacrificing quality.
Remember that quality always comes first. As fellow house flippers, you and I have a responsibility to create a high quality, safe and attractive environment to live in.
Cutting corners during the rehab process can prove catastrophic to any house flipping business model. Cutting corners will always come back to nip you in the butt. If cutting corners doesn't hurt your wallet, it will most certainly hurt your house flipping business reputation.
Slash time but don't slash quality.
Here are my top 3 house flip time-saving secrets, in no particular order.
House Flipping Business Tips | Set a Definite Time Line for Completion
I talk a lot about the importance of establishing a definite time line for completion in my eBook, which you can download for free by entering your name and email into the box over to the right.
However the importance of setting a definite time line for completion cannot be overly emphasized in this business. Holding every member of your house flipping team accountable is very important if you want to run a successful house flipping business.
One of the best ways to hold your team accountable is to set a definite timeline for completion.
How can you take action, hold everyone accountable and set a timeline? I recommend incorporating the following into your house flip business:
- Schedule a subcontractor meeting
I recommend speaking to your general contractor and emphasizing the importance of holding a formal meeting with all subcontractors. This will help assure that everyone involved is on the same page.
During this business meeting have your GC review the entire schedule of repairs. Have your GC explain the ideal order of events/repairs and have him emphasize the importance of sticking to this sequence of events.
Make sure that this business meeting and the logical sequence of events is documented on paper. Having a streamlined and logical sequence of events is essential to running a lean and mean house flipping business machine.
- Manage the Schedule
Immediately after the subcontractor business meeting, ask your general contractor to set a definite timeline that includes specific dates. Make copies of the timeline and have it distributed to each subcontractor.
Be sure that all subcontractors are clear on what their responsibilities are and the time frame for each task. Make sure that all subcontractors fully understand that they are expected to complete each of their tasks by the date outlined in the schedule.
*Consider adding everyone's cell phone and email to the schedule to further streamline communication
- Start with the Exterior First
The final goal of any house flipping business, of course, is to sell the house. Therefore take some simple exterior steps to instantly communicate to potential buyers that this house will soon be available for purchase.
If possible, begin rehab work on the exterior of the home first to give the house instant curb appeal.
House Flipping Business Tips | Hire an Awesome Real Estate Agent
Not all real estate agents are created equal. Some agents are committed, passionate and excellent at their jobs.
Others aren't so great...
Trust is key in this business and with each member of your house flipping team. Real estate agents are no exception. Long term house flipping business success typically comes from hiring a real estate agent you have some sort of personal connection with. Sift through your personal contacts and listen for recommendations from people you already know, like and trust.
Once you find a real estate agent you trust it is time to double check a few things to make sure you and your agent are on the same page:
- Review your real estate agent's marketing strategy
Will your agent be using signs?
How about direct mail?
Will they organize an open house?
Are they proficient with using the various social media channels?
Do they have a solid online business presence?
Will they go above and beyond to market your property?
Experience and longevity can be a sign of success, however this is not always the case. I put a lot of merit in an agent's energy and enthusiasm. A real estate agent who has a successful track record of selling properties in the area where your house is located is not an absolute must, but is certainly ideal.
And of course be sure to hold up your end of the bargain as well. Ideally you want to establish successful long term relationships with your real estate agents. If you bought the property through an agent and also promised to list the house with them, then by all means follow through.
Remember-in the house flipping business your personal reputation is everything.
House Flipping Business Tips | Make Sure the Price is Right
Everything in the house flipping business boils down to price. You can do everything right, but if you price too low or too high your house flipping profit can suffer.
Remember that you will be carrying soft costs, so time spent on the market will eat up your profit margin.
Trust me, monthly costs associated with holding onto a property can add up quickly. For example, lets say that you have a house with a $100,000 loan at 10% interest.
- Interest after 6 months will be $5,000
- Interest after 9 months will be $7,500
- Interest after 12 months will be $10,000
And so on and so forth...
Price your property according to your market analysis, not according to what you'd like to see the house sell for. An excellent real estate agent can really help you out in this stage of the process.
Trust your agent's instincts and work together to determine the right price.
Slash time - not quality. Doing so will help you create a profitable house flipping business.
See you at the top!
Mike
