If you’ve only watched a few episodes of Flip or Flop, you might be wondering how we find one flip house after another so fast. To be honest, we don’t. New real estate investors often think that you have to work on one project at a time so that you can see it through properly, from beginning to end. If you do that, though, you’re not going to be able to grow your business, and you’re going to miss a lot of really great deals along the way.
For instance, let’s say I’ve just bought a flip and started rehabbing it. My contractors are working, and things are looking good. So, knowing that the job is going to be done pretty soon, I wake up one morning and decide to take a look at the MLS for some upcoming deals. I see a house that just hit the market, and it looks like a great deal… But I can’t buy another property till I’m done with my current flip house.
Then, the next day, a wholesaler I’ve done business with before calls me with an amazing deal on a property that she’s just acquired… But I have to pass because I’m not done with the work on the flip that’s in progress. See how devastating working on one property at a time can be to your business? If you keep up with Flip or Flop, you know that Christina and I can have up to 15 houses in progress at one time. And so can you. Here’s how to do it.
Line Up Multiple Income Sources
First of all, you’re going to have to have the liquid cash available to buy multiple properties. If you work with an investing partner, talk with them about how much they are willing to invest in your business at any one time. There’s a chance they could be interested in working with you on more than one deal, but you’ll never know until you ask.
At the same time, unless you’re partnering with the likes of Richard Branson, your investors have limits. That’s why it’s a good idea to talk with more than one investing partner. If the investor you usually work with is tapped out for the moment, you should have leads on others that you can work with to build your business.
If you find houses that are going to be quick flips, look into private lenders and/or hard money lenders. And, of course, as you begin to sell properties, you can then reinvest your earnings into more flip houses.
Delegate Responsibility to General Contractors and Project Managers
Once you have your capital figured out, it’s time to start buying and rehabbing, but you need a plan, and you need organization. Trying to manage multiple flips on your own can be a real nightmare. That’s why we maintain relationships with a few different quality general contractors and project managers in the areas where we flip.
These guys keep me sane by taking care of all of the details on the flips I hire them for, reporting to me when there are issues, and keeping everything running smoothly and on time.
As we’ve built our business and you’ve seen it grow on Flip or Flop, Christina and I have learned a lot about what to do yourself and what to delegate. If I throw my back out during demolition, I’m not going to be good to anyone on any of my projects. If I let my team of professionals take care of their jobs, I can be in good shape to do mine. For real estate investors, getting involved with a flip house can be really fun and really profitable, but it’s always more profitable to avoid micromanaging, delegate responsibility, and focus on finding more deals.