House flipping has become a lucrative business in the past couple of years, as television shows and success stories have hit the mainstream. There is a lot of profit potential to be had in the art of flipping houses, but arming yourself with knowledge and advice can go a long way in a business that has little room for error. When you purchase a home with the intent of reselling it, chances are there will be some remodeling and repairs involved before you can put the house back on the market for a profit. For this month’s post, we thought we’d take a look at a crucially important aspect of house flipping.
If you ask any house flipper what one of the most difficult parts of the job is, they will tell you that a big part is being able to hire the right contractors. It is inevitable that a house flip will require some renovations or repairs, some more complex than others, but quality work is essential for a successful flip. Some people take a more ‘hands-off’ approach to a flip and some like to be managing all the subcontractors involved. Weigh your options as to what you want and prefer to do. Hiring a general contractor means that any subcontracting goes through the main company and this is important to note.
Below are some things to consider when hiring a contractor to perform your repairs.
Start with a plan.
There are many ways to spruce up a house for a flip. Some repairs are absolutely necessary, like fixing broken pipes or replacing roof shingles. Others are more aesthetic, like putting in a new vanity in the bathroom or redoing the kitchen cabinets. Before you begin getting any estimates or calling around, have a detailed and prioritized plan about what needs to be done.
Choose the right company for the right job.
Make sure that the contractors you are hiring are specialized and/or experienced in the particular work you are needing. Just because a company is great in redoing kitchens, doesn’t mean they can put in an addition to the home or fix the bathroom with the same rate of quality.
Don’t go with the first one.
You don’t always have to go with the first contractor you call. Interview at least three different contractors, look at their past work, get a sense for their work ethic, their reputation, and their pricing.
Budget for surprises.
It is almost expected that once work begins on a house, surprises are inevitable. You are likely to find a roof leak here and there or rotten flooring underneath a carpet, etc.
Sign a clear and detailed contract.
Make sure that all the work that is being done is in writing and clearly detailed in a contract. This includes deadlines, prices, and a detailed description of the main job being performed.
While online reviews will not tell you everything and you don’t want to rely on it as your main source of information, it can be an important way to get a sense for their work. Review sites like Angie’s List and Yelp might offer a way to get some reliable reviews.
If house flipping or selling rehab homes is something you are interested in doing for a longer period of time, then you can compound your knowledge as you go. After the first or second home, for example, you’ll know the materials, parts, and repairs that you are more likely to do and will have worked with some good contractors that you can reuse.
Get Started With House Flipping Today
The first step to working in the business of buying, repairing, and selling houses is starting with the capital to do it. Entrust Capital Funding will provide real estate investors with reliable loans to get the job done. Our process is fast and easy. We also offer the lowest interest rates in the area. In addition, we have trusted partners we have worked with in the past that can provide reliable contracting and labor. Call us today and get started!!