Flipping properties is NOT a one-man (or one-woman) show. To maximize your time and energy, it’s an absolute MUST that you surround yourself with skilled people from key industries. Your team Fix Flip Loans should consist of an aggressive, enthusiastic real estate agent; an experienced and licensed home inspector; a dependable, highly-communicative loan officer; and one or two skilled and insured handymen/contractors.
First and foremost, recruit your real estate agent. An experienced real estate agent will know the names and numbers of many home inspectors, loan officers, and other professionals whom you might wind up recruiting. This will definitely cut down the time it takes hunting these people down. Choose an agent who specializes in an area where you are considering flipping homes. Ask about the potential for such an endeavor. Establish a long-term agreement with the real estate agent that will benefit both of you: such as taking a reduced commission in exchange for reduced services (you just need them to enter your listings in the Multiple Listing Service and assist with offers/closings – you don’t need them to make flyers, conduct open houses, etc.).
Have your newly-recruited real estate agent introduce you to 1-3 experience home inspectors. Again, you are looking to establish a long-term agreement that will benefit both you and the inspector: reduced fees for reduced services will be a nice fit for the inspector. Typically, home inspectors take plenty of pictures which end up in a long, formal report. All you would need from the inspector is for them to view properties with you, look for deficiencies, explain how to correct deficiencies that you are unfamiliar with, and estimate costs of needed repairs. No report, no pictures, that’s it.
When it comes to finding a good loan officer, keep in mind that some work for a single bank, whereas others are actually “mortgage brokers” and have access to loan programs offered by several banks. This is probably the best route to go, since mortgage brokers are more likely to find a no-or-low-money-down mortgage that fits your situation. Remember: you are trying to use as little of your own money as possible. Establish a long-term agreement that allows your mortgage broker to make a bulk of their money “on the back” – meaning no or low origination fees (which is “on the front”), but charging you a slightly higher interest rate (which is fine, since you don’t plan to have this mortgage for long).
Hire laborers and contractors at your discretion: you will know what you are capable of, and what you’ll need to leave for the experts. Consider doing most of the work yourself on the first one or two properties that you fix and flip. It would probably be wise to hire at least one insured contractor who is skilled in various trades: carpentry, plumbing, electrical work, etc. Furthermore, establish a long-term agreement with this person and offer bonuses after you sell the home, and offer to pay “by the job” and not “by the hour”. This will not only insure that the contractor works at a good pace, but you’ll never be out any money with nothing done.
During your prosperous climb to becoming a real estate mogul, it is important to establish friendships with everyone you come across: plumbers, workers at city hall, neighbors, etc. The more people you know, the more resources you have. Treat everyone you “recruit” with the highest regard. Take them out to lunch occasionally, invite them to celebrations after selling your flipped homes, and do other “off the job” activities with them. Make your people want to work for you – and soon you have several people trying to achieve your goals for you!