As much as you’d like to have all the profits of the sale to yourself, you can’t flip a house all on your own. That said, you would need to hire several services from the beginning of the process down to the very end.
If you are a first-time flipper, you might think that your experience in real estate investing and handyman skills are enough to get most of the work done. However, flipping a house requires so much more than that. So, before you invest in a house to flip, it pays to find these service providers in advance:
1. Home inspection
A home inspection will reveal any and all issues that the house has, as well as possible problems that may arise later on. Before you invest in a house, you must have a home inspection done to determine how much capital it would take to flip it, thereby helping you decide if it is worth your while or not.
Unless you can do all the landscaping yourself, you need to have a landscaping company on your contact list. While you can save money by doing some of the simple tasks yourself (e.g. weeding, mowing, trimming, etc.), you may have to hire professionals to take care of the more complicated stuff, like tree removal, fertilizing, sprinkler installation, and more.
At the very least, you need to hire a professional plumber to ensure that the plumbing system in the house is working properly. But if the house has plumbing issues that go beyond your repair skills, hiring a professional plumber is essential to ensure that these issues don’t evolve and cause further damage.
Moreover, you may also have to hire a septic tank cleaning service if the house’s tank is already nearing full capacity. To find out if the septic tank needs to be cleaned, ask the previous owner when was the last time they had it cleaned. Septic tanks usually need cleaning every two to five years. But if this information is not available, you can have a professional come and inspect it.
Of course, you would also need a general contractor to take care of the construction work that needs to be done for the house. Among all the services, picking the right contractor may be the most difficult choice to make since construction will eat up most of your time and capital. Furthermore, the construction company that you hire will significantly affect the end result of the house, which, in turn, determines the success of your sale.
That said, spend more than enough time shopping around for the right contractor. Better yet, start looking weeks or even months in advance so that you have time to form a good working relationship with whoever you choose to work with.
5. Real estate agent
If you are not a licensed real estate agent, you need to hire one to make the buying and selling process a whole lot easier. Even if you have extensive knowledge about real estate, having someone else that is just as knowledgeable (or maybe even more) take care of the buying and selling process will free up a lot of your time and help you focus on the flip itself.
As much as possible, hire a real estate agent that you have already worked with before and has proven to be great at their job. If you don’t know any reputable real estate agents, one of the best ways to find one is to ask for referrals, ideally from other house flippers or real estate investors.
6. Lending or financing
It is highly unlikely that you can get a loan from a traditional mortgage lender for a flip. Thus, the best way to finance your project is to get a loan from an asset-based lender or a hard money lender that can give you as much as 80% of the purchase price.
Forming a good relationship with your lender right from the very start can pay off in your career as a house flipper. If you get on their good side, you will be more likely to close quickly and start the flip as soon as possible. Moreover, a lender that you work with for more than one deal will likely become someone that treats you as a priority.
These are the most vital services that you need for the average house flip, but you may also need others like electricals, roofing, pool cleaning, and more. Nevertheless, finding reputable providers for these services in advance can be highly beneficial for your flip, especially if you are flipping for the first time.