Real estate investing success boils down to creativity and the ability to think a little bit outside the box. Instead of building or buying properties and renting out as it is the norm, you could buy homes and sell at a profit. That’s what we call house flipping. Many flippers will look for properties that are going at throwaway prices, add a few renovations to those and then sell them twice or more times their original prices. Sounds like a business you would like to try? If so, keep on reading this article to acquire some invaluable insights into house flipping for profit.
Do I Need to Work with a Contractor?
While many investors will hire the services of a contractor to help buy and sell houses for profits, it’s not a requirement to work with a contractor as a flipper. However, it’s is a good idea to do so, because of one reason or another.
First, working with a credible contractor who holds a house flipper flipping license will have a great impact on your credibility as opposed to working alone. Secondly, doing so will enable you to find homes to buy and clients to sell those homes to faster. Do not forget that many contractors have agents on the ground who keep their eyes peeled and ears out for properties that have been listed for sale and buyers. Thirdly, by working with a contractor, you will be able to benefit from professional advice regarding the business of flipping houses.
As you can see, you have more reasons to consider a contractor, if you are planning to start a property flipping business, than not to. If you agree with me on that, fair enough. At this point, I need to educate you on how to find a good contractor. Don’t forget that not every Tom, Dick and Harry who claims to be a good contractor is actually one. That said, let’s get right to it:
1. Ask for Recommendations from those whose Opinions You Trust
A good way to start in your search for a reliable contractor who will help you find homes to buy and clients to sell those homes to is to ask around. However, don’t go about asking just anybody around you for recommendations. It’s a good idea to reach out to only those who are knowledgeable on this subject. That could be a fellow house flipper, family, friends or colleagues(if applicable) who have worked with a flipping contractor before or people with professional opinions such as builders, real estate agents and property managers.
2. Search the Digital Way
If you can’t seem to get recommendations for one reason or another, the Web should be your plan B. Websites like Angie’s List, HomeAdvisor, Thumbtack, and Craigslist have plenty of ads posted by contractors who are looking to help you out. The best part is that many of these contractors have proven track records. Facebook is another great online resource where good real estate flipping contractors can be found.
3. Professional Contractor Locator Services
If you can’t seem to find leads from people and from the websites above, all hope is not lost, thanks to professional contractor locator services. It goes without saying that there are many companies out there that offer professional contractor locator services. Companies such as Home Depot, Viessmann, and HRAI, are some of the companies offering such services you may check out. The only setback here is that some of these contractors can be extremely expensive, even though they provide outstanding results.
Though highly unlikely, if you still can’t find the right contractor up to this point, be sure to take charge of your situation by advertising your need for a contractor. When it comes to advertising, you may do that, both online and offline. As for the former, consider using Craigslist, Facebook, Twitter, and many other relevant platforms where contractors can be found. Be careful not to put your personal details that are too sensitive, such as your physical address online. I think your telephone number and your city or town should be enough for interested contractors to start with. As for the latter, you don’t have to pay for anything. Just design and put up a “Contractor Wanted” banner with your contact details in front of your house to attract the right candidates.
5. Recruitment Agencies
Reaching out to a local recruitment agency should be your last resort for a flipping contractor. Even though you are sure to find a good contractor with a trustworthy agency, one setback of many agencies is the fact that their customers have to pay for their services. Some companies are so greedy that they will charge both the client and the contractor if hiring is done, which is no far from double-billing. With that in mind, check your agency’s billing policy before agreeing to do business with them to avoid being exploited!
Once you get a few candidates(this is only applicable when you use the 1st, 2nd, 3rd and 4th means above to find a contractor), be sure to interview them accordingly. That’s because not all of these contractors are great. As for a contractor you’ve found through your local recruitment agency, you do not have to worry about assessing their suitability in detail because that has already been handled by the agency. Plus, most agencies will take responsibility if their contractor is unable to meet the client’s project needs. You may use these tips to find the most suitable contractor.
Becoming a house flipper is a relatively profitable business that can make you become wealthy in a short start. While you don’t need a professional such as a contractor to help you do it, experts recommend working with one. The benefits of involving the right contractor can be wide-ranging from getting professional advice and building your reputation to finding homes & clients faster and more. Last but not least, to find a suitable contractor, you can choose to use a number of means, including but not limited to asking for recommendations, using the Web, using professional contractor locator services, advertising and using your local recruitment agency.