In my last update to this series, I discussed the question of whether or not you’re handy and how that impacts your dreams of flipping houses. However, regardless of how handy you are, anyone flipping a house needs to have a rolodex, by which I mean a list of contractors, attorneys, etc. who can step in when needed to provide their expertise on your flipping project.
A house flip is like a good story, with rising action, climax, falling action, and denouement (pardon the French). What I mean is that typically when you are flipping a house, you go through several stages, that typically look like this:
- Optimism – The beginning of a new house-flip project – in particular the researching and purchasing of the property – is often characterized by optimism. At this point, it’s easy to look at everything through rose-colored glasses, and getting under contract on a house gives you visions of an easy project and lots of profit.
- Crisis – It usually doesn’t take long after purchasing a home to run into the crisis moment. This happens most often when you discover there is a lot more work than you anticipated, but there are plenty other potential crises that can happen. Perhaps something valuable is stolen from the house while you’re away from it. Maybe a tree falls on the garage unexpectedly. Whatever it is, you will at some point hit a crisis moment that will send you reeling.
- Resolution – At some point, you will figure out a solution to your crisis. The question is how much time, money, and stress will be spent getting to that resolution?
- Repeat – These steps tend to repeat at various stages in the house. Researching/finding the house, fixing the house, listing the house, and selling it will each cause you to experience some level of the OCR (optimism – crisis – resolution) cycle.
So what does this have to do with having a rolodex? Simple. It’s your rolodex that determines how quickly, efficiently, and cost-effectively you’re able to bring about resolution to the various crises you experience.
Ideally, you’d have the contacts of experts who can handle just about every major component of a house flip. I find myself always having to talk to electricians, pest control experts, landscapers, and attorneys. At some point, no matter how handy you are, you will need to do this as well.
So where do you start? Talking to other people who have flipped houses and getting them to share their rolodex with you is a good starting point. But a good REALTOR® can help you out too. So here’s another shameless plug – I have nearly two hundred people in my rolodex that I’ve collected over the years. If I ever need help with just about anything, I have a number to call.
So if you find yourself needing help with a house flip, who you gonna call? (No, the answer isn’t Ghost Busters.) Hopefully, you’ll give me a ring and a chance to show you how I can help you become a bonafide real estate investor.