Blog

The Golden Rules to Hiring a Contractor for Your House Flipping Business

Your contractor can have a profound impact on almost every aspect of your real estate flip: Deadlines. Quality of work. Budget. Return on investment. And whether or not the overall experience is energizing or draining.

Whether you’re funding a flip or using a hard money lender, it’s important to keep your flip on schedule and on budget. Time is money. Not all contractors understand or care about that. Follow these steps and you’ll be able to find good contractors and build lasting relationships with the ones who come through for you.

You’ve found your next real estate flip, secured your hard money loan, and closed on the property. Now it’s time to make a return on your investment.

The secret to successful real estate flipping is knowing which improvements not only attract buyers, but also drive up the value of the home so that you can realize a higher return on your investment.

Here are some of the win-win improvements that make both buyers and investors happy.

“I think I’ll hold out for something better.”

“This is getting frustrating; maybe I can find a better buyer.”

There are times when these conclusions are the best course of action. But when it comes to a real estate flip, there’s a lot to be said for trying to make that first offer work. Once you and a prospect have reached an acceptable initial offer, making an effort to see the deal through is beneficial for a number of reasons:

You don’t have to shake out the couch cushions to get funding for flipping houses.

Flipping a house takes a lot of money beyond the purchase price. The median purchasing price for homes in 2019 is $155,000. Add on rehab costs, appraisals and inspections, holding costs, realtor fees and closing costs… it takes a lot of money to turn a profit on your fix and flip.