Is starting a house flipping team the easiest way to houseÂ flipping success?
While house flipping is not the easiest thing to do in real estate, it isnâ€™t really the hardest thing either.
â€œI choose a lazy person to do a hard job because a lazy person will find an easy way to do itâ€ -Bill Gates
Hard work is so overrated which is why many new house flippers feel overwhelmed when they try to do everything by themselves. They want to find the house, negotiate the sales price, use their own money to buy the house, take care of all the legal work, fix the house, etc. Performing all these tasks by yourself can be overwhelming even if you want to squeeze out as much profit as you can.
The good news is that you can use the lazy manâ€™s modus operandi, which is, starting your own house flipping team.
Starting Your Own House Flipping Team
When you first start flipping houses, the most important thing you should have after the right mindset is the right house flipping team. The lazy man already figured out that using other peopleâ€™s expertise is the easiest way to become successful in real estate.
These are some of the members that the lazy man has in his team.
Real Estate Lawyer
Donâ€™t just hire a cheap real estate attorney or try to cut corners because it could backfire. I understand that lawyers can be very costly but at the end of the day, flipping houses can be very tricky and can become very complicated faster than you think.
Hire the best real estate attorney that you can and get quality services. It is better to pay for an expert attorney rather than end up paying ten times the price in legal fees because you skimped on attorney services.
Certified Public Accountant(CPA)
The U.S Tax code can be interpreted in so many ways so itâ€™s understandable if you find it difficult to get a top-notch CPA who understands the house flipping business. The best thing to do is to find a CPA who is familiar with the U.S Tax laws especially those that involve house flipping and investing in real estate.
Not only will a qualified CPA help you save on taxes but they will also keep you out of trouble with the IRS. Your attorney and your CPA have to communicate with each other and come up with an ideal business structure for you.
If you are working in a few different markets, you should have more than one contractor. You donâ€™t have to do all the rehab work when it can be done by a professional. Not only is doing all the rehab work time consuming but it could end up costing you more especially if you donâ€™t have a background in building or real estate.
A general contractor will make your work much easier by running the entire project and even firing ineffective sub-contractors. Find one who has a good track record and fits your budget.
Real Estate Agents
If you want to include a real estate agent in your house flipping team, you have to find one that you can train or has experience working with house flippers. You might need to hire a few different agents depending on your region and their areas of specialization.
Lenders are a very important part of your house flipping team because they will give you the money that you need for your house-flipping project. Â Having more than one lender has plenty of advantages.
The best way to find a private lender is by forging relationships with them. The best business relationships are forged in one-on-one sit down meetings and not over emails and phone calls.
When starting out, you may not be lucky enough to have the best or the right members in your house flipping team. You have to go through a few bad ones in order to get the good ones. Experience will help you make the right decisions at the end of the day.
Do you think there are some additional team members that I havenâ€™t mentioned? Iâ€™d love to hear what you think.