Top 5 Must-Haves for Flipping Houses Get a Good Contractor

Number one is the CONTRACTOR

CONTRACTOR

• Work with a partner contractor

• Bring a contractor in who is also an investor in the deal so he puts skin into the game, whether it’s his money or he’s doing it at cost.

Flipping Houses with a Contractor

1. Deal comes in. Pull up comparable sales; see if it looks like worth checking out.

2. Once you know it’s going to be a good flip, go to the property with your contractor and do your Initial Walkthrough.

Flipping Houses with a Contractor

3. Check on design concepts, talk about the general budget, the cost. If everything looks good, the contractor would then give a realistic number.

4. Then put an offer in on the property. This can also be done backwards. Put an offer first before doing these.

5. Once the offer gets accepted, the contractor gives a detailed scope of work.

Payment arrangement with a contractor

Based upon the agreed upon scope of work and budget—let’s say it’s a $100,000 renovation, from there we take it down and we create a pay opt.

Draw a schedule:

1st - $15,000 – for mobilization which buys the lumber and does the demo and get the dumpsters out there.

Then, after he meets certain milestone you go to draw number 2, 3, 4, 5 and 6 – depending on the extensive remodel.

So it’s agreed beforehand, both will sign on that pay opt and as well as the construction budget.

Contractor Partner

A contractor who is also a partner does it at his cost. Then, at the end he gets a portion of the profits – of the gross profits.

Create a long, lasting relationships and if you can, teach a contractor how to become an investor partner they seem to really like that side of the business and they appreciate it

Direct: 925.852.8261Managing PartnerSFR Ventures Inc.BRE #01307829

Beau Eckstein

Learn more at beaueckstein.com