Successful investors understand that the path to building a scalable house flipping business lies in building a team around them.
You will need your house flipping team for everything from generating leads, to avoiding litigation, to managing a property rehab smoothly.
Your dream team will be made up of these people:
Real estate wholesalers are a great source for off-market properties.
You’ll need to contact as many wholesalers as possible in order to cast a wide net for potential leads.
To find wholesalers in your city, call bandit signs, go to meetups, or join Facebook groups, and ask to be put on their mailing list.
You’ll get the best results if you provide very specific property criteria.
Buy Side Realtor
For on-market properties, you will need a connected, investor-friendly Realtor.
They need to actively assist in locating and showing you many properties in various stages of disrepair.
This buy side Realtor should also have experience with evaluating the investment potential of a particular property.
At a minimum he or she should be able to provide a list of real estate comparables, so that you can run your own real estate comp analysis.
Sell Side Realtor
Although very often you will work with the same Realtor for the buy side and the sell side, your sell side realtor skill set is in marketing and moving properties.
So keep in mind that if your buy side Realtor is weak in this area, you may choose to pair up with a different Realtor to sell the property after the rehab is complete.
Real Estate Attorney
Generally speaking, the most profitable properties are typically those with issues that no one else is willing to deal with.
Short sales, properties with multiple heirs, title issues, and sellers in distress or foreclosure all have major issues that an attorney can unravel.
Find a licensed real estate attorney that specializes in whatever issues face your property. Your attorney will be instrumental in writing and reviewing contracts for many aspects of a fix and flip.
Title Company or Attorney
Depending on your city or state, either a title company or a real estate attorney can run title on potential properties.
They can also facilitate a closing, or issue title insurance.
Whichever one you choose should be knowledgeable in transactions involving the different real estate exit strategies and contracts including everything from wholesaling to foreclosures, short sale transactions, Subject To contracts, and so on.
If you decide to go with a company that specializes in property rehabs, you’ll save yourself the headache of finding the general contractor, contractors, and subcontractors on your own.
However, you will pay a premium for that convenience.
If you do decide to go the DIY route, you’ll need to consider finding many of the following trades, depending on your needs:
- General Contractor
- Window Installer
- Drywall Installer
- Flooring Installer
- Cabinet Installer
- Door Installation
- Tile Setter
- Garage Door Replacement
- Countertop Installer
- Pool Repair
- Siding Installer
- Deck Builder
After your flip is complete, a property manager can maintain the grounds and exterior, ensuring that the lawn stays tidy and the pool sparkling.
Staging has been found to be beneficial both in sales price boost and in reducing days on market.
It is especially vital for properties that have unusual layouts.
This is because adding furniture and accents will help potential buyers visualize where their couch or dining table can be placed.
Whether you choose to go the hard money or private money route, having a lender that can close in days is a must in competitive markets.
Your lender should show all fees and rates upfront.
Check out this post on the 14 creative ways to fund your house flip.
Finding insurance for a fix and flip property can be tricky, depending on what areas you invest in and the type of renovations.
That’s why you need an insurance company that understands and covers the unique risks involved.
You will definitely need builder’s risk and liability insurance during the rehab phase.
If the property will be vacant while it’s on the market after the rehab, you’ll need coverage in cases of disaster, theft or mischief.