7 People to Know For Flipping Properties
March 23, 2015 |
Written by Doug Hopkins
Flipping properties is not for the Lone Ranger- not by a long shot. It’s necessary to form a team that will be ready to “pitch in” within a few hours’ notice. Why? Because time is money. Successful “flippers” don’t spend months or even weeks renovating. A “flip” must be returned back to the market as quickly as possible for the highest realization of profit.
A “flip” team consists of real estate industry experts who play some part or provide a service each time a property is sold; you’ll be surprised how many different players are involved. Some play relatively important roles while others are critical. Let’s start putting a team together:
When you’re talking about a few thousand dollars that can make or break a potential investment, you should look for someone who knows how to fix what needs fixing, how long repairs will take and, most important, the costs involved. Also, it’s important that you learn and understand Arizona Contractor Laws regarding the payment for services to non-licensed handymen.
At least two lenders are used: a private money lender and a conventional lender. Before you get too far out of the starting gate, supply your lender(s) with the items required to get your financial house in order to allow you to be ready to start making property buys.
While your contractor will quote and fix items with your property, a skilled inspector will physically examine the entire property looking for potential issues.
Your title officer is invaluable to ensure you don’t inherit problems you’d rather not have. Property tax liens and IRS liens, mechanic’s liens as well as existing mortgages must be resolved. Foreclosure may wipe out a mechanic’s lien or a judgment, but there may be cases when you buy a property before foreclosure.
This licensed professional will make the determination of the property’s current value, but also
its renovated value.
A coach or mentor is valuable. This person should have blazed a successful trail and can be someone you can contact when you have a question – you will have questions – many, many questions.
Real Estate Agent
If you’re not a licensed real estate agent, your team is missing its most important member. Your agent will be involved in every aspect of your flip. Most importantly, your agent knows neighborhood trends which is a key ingredient when deciding whether or not to buy in a particular area.
For details on building your team and for more information on flipping, be sure to attend the Find It, Fix It, Flip It seminar on April 3rd at the ASREB Gilbert Campus. I will be one of the panelists along with other professionals in this field. REGISTER HERE