Fix and Flip Teams: Who You Need to Be Successful
Flipping homes can be a lucrative business, but only if the flip is done right and with the right team. Many people buy a home and expect to be able to save on costs by doing the repairs and remodel themselves, but going solo could be the worst thing a new homeowner does. If you have recently bought a fixer upper and want to know who you need on your team to make the fix and flip successful, use this guide.
Flipping homes is expensive no matter which way you look at it. Not only will you need money to purchase the home outright, but you will need capital to pay for the materials, the labor, unforeseen issues and everything in between. If you don’t have the capital yourself, you will need to work with an investor or pull out a working capital loan.
The Right Contractors
Before you buy a home that needs to be flipped, look for a trustworthy contractor to work with. The right contractor understands fix and flip and is willing to work within your budget and on your schedule. Additionally, he or she understands your goals and is willing and able to do what is necessary to help you achieve them.
The Right Legal Representation
Unfortunately, the flipping business is wrought with legal issues. An agent may misrepresent a home and you could be stuck with tens of thousands of dollars in unforeseen repair bills, or the seller may try to back out at the last minute. An attorney can make sure that your contract is airtight and that all possible issues can be successfully settlement by a clause or two within the agreement.
Savvy Real Estate Agents
The fix and flip game is a competitive one, and more often than not, a home is snatched off the market before it is even listed. For this reason, successful flippers team up with savvy real estate agents who can introduce them to lucrative properties before anyone else has the chance to view them.
A Knowledgeable Accountant
As mentioned above, fixing and flipping requires a lot of money. Because of the numerous costs, expenses can quickly spiral out of control. An accountant can help you stay within your budget and make sure that you have capital available for non-repair and remodeling costs, such as legal fees and taxes.
The fix and flip game can be a very lucrative one. However, before you invest in a fixer upper, make sure that you have the right people on your side.