How to improve my house flipping business?

[RichardTheFrog]

I'm still on my first one. Learned a TON about home repair and remodeling. And bought a ton of heavy duty tools and equipment as well. Capital purchases for the future of the business. I have no problem finding houses to flip because they get emailed to me. But I have enough so that I could do 3 houses at once if I took out loans. Problem is, I'm only one person. It would slow everything down if I was doing all the work myself. But a contractor might charge an arm and a leg and I would have to babysit them, anyway. I'm not just gonna trust them blindly that they're doing the job correctly.

 

[sosousage]

Why not ask on HOUSE FLIPPING forum?

 

[switch7]

I'm still on my first one. Learned a TON about home repair and remodeling. And bought a ton of heavy duty tools and equipment as well. Capital purchases for the future of the business. I have no problem finding houses to flip because they get emailed to me. But I have enough so that I could do 3 houses at once if I took out loans. Problem is, I'm only one person. It would slow everything down if I was doing all the work myself. But a contractor might charge an arm and a leg and I would have to babysit them, anyway. I'm not just gonna trust them blindly that they're doing the job correctly.

@BeExcellent might be able to give you some advice if you will take it. She no doubt has contractors working for her from time to time when she takes on new properties..

 

[RichardTheFrog]

@BeExcellent might be able to give you some advice if you will take it. She no doubt has contractors working for her from time to time when she takes on new properties..

If I could get contractors to do the work for me, I could sit home all day. Unlike today when I'm starting to lay tile. Something I've never done before, but will no doubt learn very quickly. I usually learn things very quickly, strange why I'm having trouble learning the PUA stuff.

 

[Bible_Belt]

Those tools will get stolen as soon as you turn your back on them. After drugs and guns, tools are the #3 most liquid item to steal.

"Contractor" just means you took a test. A lot of people have skills, but no official title. This is another good example of how people skills would help you in business. You would be able to interview guys and tell who was legit and who would rip you off. Having a good crew of workers is not easy to maintain, but can be very valuable.

 

[taiyuu_otoko]

Expect to do a lot of sorting and a lot of trial and error learning.

People that do good work that you can trust are few and far between, and there is no magic way of finding them. Start slow and build slow. Right now you have zero experience, zero success.

Meaning all the "quality" workers would rather work for a guy who knows what he's doing, and has TONS of work in the pipeline.

Regardless of what you think of your house flipping skills, every potential worker will hear:

"This is my first job, and I'll promise I'll be successful so if you work hard for me on this one I'll have a lot of future work for you."

Every free lance website (for any business) runs on a reputation system of both workers and people hiring the workers.

Nobody wants to hire anybody without any credibility.

Nobody wants to work for anybody without any credibility.

Many people who successfully flip houses on a small scale do it with a crew of people they trust (old friends, family members, etc.). A crew of four of five folks (all with experience and their own tools) can go through a house every couple weeks.

Very tough to do if you don't trust anybody, and you don't have any close friends to help.

Maybe hire people with their own tools, pay them cash daily? Don't know if that's feasible.

 

[ashleysummer]

As far as I've got it, you don't have a website. If this is true, you gefinitely need one to run your business effectively. You can download a ready-made theme from a trusted website (I suggest that you try Templatemonster theme https://www.templatemonster.com/ ), and customize it according to your business goals.

 

[Spaz]

Hire 1 professional craftsman.

Work together with him.

Doesn't matter if it's slow as the aim is for you to learn everything professionally.

Once you have sufficient craftsmanship you will then be in a position to hire a crew and lead them.

And your business will take off.

Income always goes in tandem with service level.

Your service level now is low because of your lack of experience and craftsmanship.

 

[BeExcellent]

Richard PM me if you'd like specific advice. My general advice would be go slower & one at a time for now.

The things you learn doing stuff yourself becomes extremely valuable later when you go to manage others. You gotta be knowledgeable, reasonable, and rational in business. Your reputation is your currency. I have built a sterling business reputation that has opened many doors and provided many opportunities in a traditionally male dominated industry. From time to time I still have to overcome the fact that I'm a chick...but now that's to my advantage as it means I still get underestimated from time to time. People find for example that I am firm but fair. I also pay people timely and enforce standards (like don't run a circular saw inside *it creates a terrible & unnecessary mess*)...and learn from the tradespeople you hire. The things you learn will save you tons of money over time.

Nobody will manage your projects as tightly as the owner. Nobody.

Edit: Dam. Didn't see he got banned. If Richard is reading...search various RE forums. Good luck

 

[BeExcellent]

The way he talked about house flipping, you’d think he was well into the business with years of experience. But he’s never even laid tile. Lol. He was all arrogant and probably barely knows how to read a tape measure. Reminds me of when I get 20 something year old new guys on the job and they’re all c0cky because they came from a trade school. They change their attitude real quick and stop trying to teach me or impress when I ask them to do something specific. Reminds me of some of the young posters here actually

No saws inside huh BE? I’m not a carpenter but it’s Safe to say myself and most guys I know would walk off your job lol that’s just ridiculous and unrealistic. Ever heard of a shopvac or clean up crew? Unless you’re talking strictly renovations in condos where people currently live. In that case, what do they do when 10 degrees outside or there’s no balcony or terrace? Go in n out? Sometimes up to 40 floors or more? Waste 20 minutes per set of cuts each time? I would never work with you and noe I know for sure I dont like you

You don't have to like me. That's fine. One of my GCs, who is now terribly sick, had a habit of running a circular saw in an apartment building that was occupied. He would set up in the common hallway! After he made a huge mess with Hardy plank concrete dust everywhere and woke all the tenants up (some of the renters worked graveyard shift jobs) you bet I said no more circular saws indoors. He also was never good about cleaning up throughly, which created undue mess for me to clean up. Some workers are not attuned to what *really* cleaned up is.

Obviously it doesn't matter on a new build where you clean up anyway but much of my stuff is renovation in occupied property.

I've done complete kitchen & bathroom renovations in occupied units at times. So yes, you are correct...but so am I. Context matters no doubt. I've got many guys who have worked for me for many years. If I was unpleasant to work for they would not prioritize my projects or show up after hours or on weekends (often at no additional charge) when I've got an issue. Sometimes they have called me from other jobs to ask my advice...where I got a certain product or how I solved something that they can put to use elsewhere.

That doesn't happen a whole lot...but it does happen from time to time.

So you are entitled to your opinion...but you would probably appreciate working for me or with me as much as my guys do...unless you are someone who over charges & under delivers. Those types don't survive on my jobs for very long. They can go find other suckers.

 

[RichardTheFrog]

Richard PM me if you'd like specific advice. My general advice would be go slower & one at a time for now.

The things you learn doing stuff yourself becomes extremely valuable later when you go to manage others. You gotta be knowledgeable, reasonable, and rational in business. Your reputation is your currency. I have built a sterling business reputation that has opened many doors and provided many opportunities in a traditionally male dominated industry. From time to time I still have to overcome the fact that I'm a chick...but now that's to my advantage as it means I still get underestimated from time to time. People find for example that I am firm but fair. I also pay people timely and enforce standards (like don't run a circular saw inside *it creates a terrible & unnecessary mess*)...and learn from the tradespeople you hire. The things you learn will save you tons of money over time.

Nobody will manage your projects as tightly as the owner. Nobody.

Edit: Dam. Didn't see he got banned. If Richard is reading...search various RE forums. Good luck

Well at this point running a circular saw indoors isn't my idea of getting messy. Here's the floor when it was cut up to put in the plumbing and electrical conduit for the center island (which I did myself).

https://www.dropbox.com/s/c3r7s0fv1d1k6da/1122171105a.jpg?dl=0

Here's before...

https://www.dropbox.com/s/zvzrztqevsgno4x/0901171149b.jpg?dl=0

And after...

https://www.dropbox.com/s/ltgh2ok7rnlnkna/0221181839.jpg?dl=0

I thought you were a SFH landlord, not a rehabber?

 

[BeExcellent]

I thought you were a SFH landlord, not a rehabber?

The house you are working on is coming along nicely Richard. The kitchen looks really good.

Sometimes they overlap. I buy SFH that are deeply discounted due to condition. So rehab is an innate part of what I do because I rehab to rent. I don't rehab to flip so much (although I'm considering getting into a couple of deals that do just that)...but I rehab to hold.

I always rehab with an eye toward what is going to maximize value if I eventually want to sell to the retail homeowner market.

Just today I looked over a really interesting project. It's HUD and not open to investor bids for another 10 days. Cute house but whoever lost it had dogs or cats that peed everywhere and severely damaged the original wood floors. The whole house reeked of pee. Awesome. Seriously. Pee is the smell of opportunity in my book. No homeowner is going to buy it with the stench. And I can probably get it a a 50% discount or more from the current price (which represents a 75% to 80% discount compared to the surrounding neighborhood), and I already own a rental house 3 doors down the street from this one that gets market rent from a pharmacist who has been a tenant of mine for a number of years. The pharmacist's house had a big hole in the tub surround when I bought it. About $1500 later? Problem solved. It's been cash flowing like a monster ever since I fixed the issue that turned off other potential buyers. So I make money solving problems other people are afraid of.

The house I looked over today? Central heat, central air, single car automated garage door, 2/1 with original woodwork and bathroom surround intact, and one of the best basements I've ever seen. Recently rewired. Needs a new furnace & hot water heater. Structurally rock solid. Needs paint, flooring and smell abatement. If I buy it where I'd like to be I can fix everything and still double my money on my total basis. While also improving the property and supporting the neighborhood property values at retail market. That is good for everybody. And makes me a pretty penny along the way. One of my hard money guys is looking at backing the deal and the rehab. So my job is to get it, fix it, flip it, and then offer his portion of the profit to my lender...or offer him the ability to earn more by rolling his profit into my next deal. Everybody is happy.

So yeah I do both.

 

[RichardTheFrog]

Sometimes they overlap. I buy SFH that are deeply discounted due to condition. So rehab is an innate part of what I do because I rehab to rent. I don't rehab to flip so much (although I'm considering getting into a couple of deals that do just that)...but I rehab to hold.

I always rehab with an eye toward what is going to maximize value if I eventually want to sell to the retail homeowner market.

Just today I looked over a really interesting project. It's HUD and not open to investor bids for another 10 days. Cute house but whoever lost it had dogs or cats that peed everywhere and severely damaged the original wood floors. The whole house reeked of pee. Awesome. Seriously. Pee is the smell of opportunity in my book. No homeowner is going to buy it with the stench. And I can probably get it a a 50% discount or more from the current price (which represents a 75% to 80% discount compared to the surrounding neighborhood), and I already own a rental house 3 doors down the street from this one that gets market rent from a pharmacist who has been a tenant of mine for a number of years. The pharmacist's house had a big hole in the tub surround when I bought it. About $1500 later? Problem solved. It's been cash flowing like a monster ever since I fixed the issue that turned off other potential buyers. So I make money solving problems other people are afraid of.

The house I looked over today? Central heat, central air, single car automated garage door, 2/1 with original woodwork and bathroom surround intact, and one of the best basements I've ever seen. Recently rewired. Needs a new furnace & hot water heater. Structurally rock solid. Needs paint, flooring and smell abatement. If I buy it where I'd like to be I can fix everything and still double my money on my total basis. While also improving the property and supporting the neighborhood property values at retail market. That is good for everybody. And makes me a pretty penny along the way. One of my hard money guys is looking at backing the deal and the rehab. So my job is to get it, fix it, flip it, and then offer the profit to my lender...or offer him the ability to earn more by rolling his profit into my next deal. Everybody is happy.

So yeah I do both.

Do you only use licensed contractors? I think that's what I will end up doing. I've been trying to pinch pennies using "handymen" I find off Craigslist.

Tile floor installed for $1/sq. ft., a whole set of cabinets for $500, etc. but they are usually unreliable and I have to watch them closely. If I'm ever going to get big, I think licensed contractors is the way to go, especially for commercial flips.

 

[BeExcellent]

Do you only use licensed contractors? I think that's what I will end up doing. I've been trying to pinch pennies using "handymen" I find off Craigslist.

Tile floor installed for $1/sq. ft., a whole set of cabinets for $500, etc. but they are usually unreliable and I have to watch them closely. If I'm ever going to get big, I think licensed contractors is the way to go, especially for commercial flips.

One of the municipalities I operate in requires licensure for GC's. The other two require licensure for the trades (electrician/plumber etc.) but not for GCs. I don't really care so long as I know the people know what they are doing and carry insurance. I no longer do my own work as my time is too valuable finding new deals and managing my consulting business in healthcare along with my real estate ventures.

Like you I can find great deals on things...but sometimes the great deal comes with the hidden cost of you having to manage things very closely (as you are finding.) I'd prefer to pay a bit more for someone I can trust to do the job well for less supervision, which frees my time for other things.

 

[RichardTheFrog]

One of the municipalities I operate in requires licensure for GC's. The other two require licensure for the trades (electrician/plumber etc.) but not for GCs. I don't really care so long as I know the people know what they are doing and carry insurance. I no longer do my own work as my time is too valuable finding new deals and managing my consulting business in healthcare along with my real estate ventures.

Like you I can find great deals on things...but sometimes the great deal comes with the hidden cost of you having to manage things very closely (as you are finding.) I'd prefer to pay a bit more for someone I can trust to do the job well for less supervision, which frees my time for other things.

Very true.

I'm on the mailing list of about 30 different wholesalers so I have off-market deals sent to my email every day.

 

[BeExcellent]

I'm pleased things are coming along for you with the flipping. The work so far really looks good and I'm sure you are learning a great deal. Happy for you

 

[RichardTheFrog]

I'm pleased things are coming along for you with the flipping. The work so far really looks good and I'm sure you are learning a great deal. Happy for you

Thanks.

 

[BeExcellent]

Very true.

I'm on the mailing list of about 30 different wholesalers so I have off-market deals sent to my email every day.

That's where you'll do well. Most of my deals (not the one I say today but most) are pocket deals that people approach me with outside listings that go on the open market. When I first got started years ago I didn't think what I read about "pocket listings" was true.

Now it's almost exclusively what I deal with. It's a nice place to be.

 

[RichardTheFrog]

That's where you'll do well. Most of my deals (not the one I say today but most) are pocket deals that people approach me with outside listings that go on the open market. When I first got started years ago I didn't think what I read about "pocket listings" was true.

Now it's almost exclusively what I deal with. It's a nice place to be.

Very interesting

 

[sosousage]

Very interesting

you could create a website and rank it in google for more clients. but if you would rank you would have so many clients that you probably couldnt deal with 10% of them on your own