How To Flip Houses Like An Expert
What exactly do you need to do while starting a house flipping business? How do you even flip houses like an expert?
Well, if you’re just starting to flip houses, then you have a lot to learn. And part of what you need to learn is how to manage a real estate team. For one, a real estate team will actually condense your learning curve; secondly, it will help you to go through tough times smoothly; and lastly, a team will protect you from all the major pitfalls that a great majority of house flipping investors experience.
Many investors who get into house flipping business are generally misled by a common notion: house flipping is a solitary process. But the truth is; profitable house flipping is totally dependent on the house flipping team you have.
In fact, establishing a good house flipping team comes as the second most important step of starting a successful house flipping business—first is the real estate mind set. That said, here are the most important recruits of a formidable house flipping team:
The Team Members You Need To Flip Houses Like An Expert
Real Estate Attorney
The first recruit on your team should be an experienced real estate lawyer that you implicitly trust. That’s not to say that you need one to help you get out of a jury summon. But somewhat, you need one to keep you on the right side of real estate laws.
Many house flippers make a grievous mistake by thinking that they can actually do without an attorney. Some that want to reduce their costs simply decide to settle for a second rated, internet-based legal service. But here’s the truth; when it comes to finding a qualified attorney, you only get what you’re willing to pay for.
To be safe, don’t skimp when it comes to hiring a qualified attorney. Likewise, pick an attorney that understands real estate laws completely. In fact, the best way of doing this is to think of it as an investment instead of a pointless expenditure.
Certified Public Accountant
You team is not complete until you bring in a certified public accountant to keep you on the right track with IRS. Actually, this is even more important when you’re making huge amounts of cash from house flipping.
Please note; hiring a wrong CPA can actually cost you lots of money instead of helping you to save it. And because of that, it’s recommended that you find a top-notch CPA who knows how to interpret your country’s tax code. More importantly, the accountant you employ must be able to keep your taxes low without getting you into trouble with IRS.
Let your CPA know that you need him (or her) to get involved in your business structure from a tax-advantage stance. And the best way to get this done is to let your attorney and the CPA pool resources in picking out the most appropriate business structure for you.
The next recruit in your team is an insurance agent. And in this case, you actually need more than an insurance agent; you need an insurance agent who understands your business structure completely and is competent enough to give you the best business advice.
Even though you can fairly manage some rehab work on your own, there are a number of reasons why general contractors are a crucial segment of your house flipping team. And like any other member of your team, it’s advisable to hire only the best contractors and the ones that you can completely trust, as well.
Real Estate Agents
Real estate agents are among the most important members of your team. And since you’re aspiring to conduct house flipping like a real expert, then your business needs agents who are well-experienced in real estate. Alternatively, you can train your own team of real estate agents and whom you can assign different duties according to your business structure.
Even though wholesalers have actually tainted their reputation in the recent past, you can still find a good wholesaler that you can totally trust. After all it’s just business; if both of you can make money with each other’s help, then getting a wholesaler is a crucial step of establishing a strong real estate team.
You can actually get a wholesaler by carrying out a quick Google search or at REIA meetings. After contacting them, your next step should be to build a strong business relationship with them. Although you have no obligation to conduct a house flip with wholesalers, they may be a good source of new house flips for your business.
If you've come this far please leave a comment below. I'd love to know what you think of these team members and how they can make you become a house flipping expert.