Jake,
Flipping is different from rehabbing. Most rehabbers, fix and sell retail. Some are landlords, so they fix and keep.
In flipping, you want to control the property for a minimal amount of money and risk to you. Easiest way I know is just a straight option. You could also tie it up with a contract and assign the contract, or do the simultaneous close. If you do use a contract, make sure you can close and have a plan B to close if your buyer flakes out.
If the deal is good enough, rehabbers will buy from you.
Joe Kaiser has an excellent article in the how to section on “Prehabbing”. I’d recommend you check it out. It could put a lot of money in your pocket for a small investment.
Good luck,
Bill
I have got my first feedback from site, it was great. I’m considering purchasing a program on flipping properties, but before I spend my money, the only concern I have is in finding the handyman / person whom I’m going to flip to. I am very comfortable with the contact / negotiation part and am sure I can find some killer deals just based on this website alone. Can anyone guide me so I can do preliminary networking before I spend money on a program to deal with the technical aspects.
btw, I am in the chicago suburban area in case anyone is local
Jake,
You can look in the services offered sections of most any paper. I look in the lower priced, throw-away papers as well as the regular papers.
A few things to consider that I have learned along the way.
Don’t base your decision on price alone.
Handymen have families like everybody else. If you’re looking for someone for 8 to 10 bucks an hour, you’re looking for a total loser or a high school kid.
Expect and be willing to pay about half what a contractor who has a big business and advertizes in the phone book charges. The rates will vary around the country, but in Chicago area, I’d expect to pay 15 to 30 dollars per hour. Many handymen will bid the job flat rate if you desire. If you do this, just make SURE you have everything detailed as to what you get for your money.
Don’t waste your money paying a jouyneyman to do laborer’s work. Pick up the scrap and haul the trash yourself or get a high school kid.
For $30 an hour, you should be able to get a journeyman with all the tools necessary to do the job.
Master’s of the trades will cost MORE, and are worth it.
Don’t hesitate to hire experienced tradesmen. Not every job is a “handyman’s” job.
Good reliable tradesmen are HARD to find. They are ALWAYS busy.
If you are lucky enough to find one treat them like gold. They will make you a fortune.
Always pay as agreed and on time. NOTHING aggrevates a good worker more than being nitpicked and not paid as agreed. If you do this to a good worker ONCE, they will quit you and you’ll be back to using losers.
When you’re rehabbing old fixers, remember, you’re not building a cabinet or working on a TV project. Things don’t fit sometimes. Walls and ceilings are out of plumb, and so on. The TV shows have repair budgets of about $250 a square foot. We’re trying to get houses repaired for $15 a square foot. There’s a difference.
Network and ask for referrals.
When you find the other investor/rehabbers in your area find out who they use. Go by their jobs and look at the trucks and speak with the workers to find good rtradesmen.
Good luck,
Bill
Thanks alot. I will do check these resources tomorrow. I was actually hoping to “flip” property without any financial risk. Do I have this concept misunderstood. I am cash tight and want to find houses and sell them with minimal risk. Your feedback is greatly appreciated and helpful