Business & Finance Renting & Real Estate

How to Find a Partner for a Home Flipping Company

House flipping is the buying of a house with the intent of fixing it then selling it at a profit. This has become a lucrative business in the housing industry with many people from different works of life wanting to try their luck. But,a lot of decisions have to be made on whether to buy a house in an existing neighborhood or a new up coming area. For people wanting to start such a business, they need to have the required amount of money and a group of qualified contractors who will do the demolition and building. One therefore needs to find a good team to partner with in such an endeavor.

 So, this brings the question of how to find a partner for a home flipping company. First, you need to have a good understanding of the real estate in the area chosen. Start your research by attending foreclosure sales,sheriff sales, auctions, bank repossession activities and any other events. You can also visit the neighborhood where there are homes for sale. Look for such words as foreclosure, bank repo or owned on the signs, flyers and in area newspapers. Also communicate with the realtor through the contact information written on the sign post. Another research tool are websites on houses being sold, bookmark these sites.

 Once you have gathered enough information, you would need to look for ways to get financial resources to buy the property. This should be done before the property goes on to the market. This business of flipping houses requires that you have the cash or financing so you can obtain credit from the bank, or use your investment funds meant for your flipping business,  Once you have obtained the right amount of cash, decide on the portion that will go to paying the salaries for your independent contractors for this project.

Once you have all the previous steps in place it's time to choose a pool of skilled conractors to join your team. They need to be qualified to cover the following areas, roofing, electrical, plumbing, structural design, interior and exterior design among other activities. If you are just starting your flipping business and have a team in place, you can ask others that have worked well with contractors in these areas for recommendations. As a weeding out process, you want to make sure you are requesting references from their previous employers. Once you have assembled your crew, now you need to decide on how you are going to pay them whether a per project salary, hourly wage or a percentage after the house has been sold. Make sure these agreements are accepted by everyone involved with a written agreement. Nothing is worse than issues that arise after the project is finished and to be placed on the market for sale.

Also, all independent contractors should take responsibility of their own health care. So, request that each team member show their health insurance coverage and proof that it is valid. They should also sign a requirement that in case they get hurt or die during the course of working they will not seek you to compensate them.

Make sure that you know all taxe issues that relate to you buying, flipping or keep ownership of houses. As a precuation, it is always a good practice you should consider having a Real Estate person as part of your team. With knowledge of your States taxes, make sure you apply for the real estates taxes that will be applied on the property. Also, you could also hold onto the property for a year after finishing the reconstruction. This step could enable you to get tax breaks to help you put the house on the market.

Once the house flipped has been purchased, look for another project and begin the process again. Remember to take your time to cover all bases that I have covered with you, and build your business with knowledge. If this idea of flipping houses to build and income appeals to you, you will find my articles to flipping houses in this economy very helpful.

The economy should not be the determinng factor as to getting involved in an investment for your present and future. I am sure that you have heard that money is made in all down turns in the economy, and this is no exception. For more learning tools, visit www.rentalsbynedra.com for your free 7-part ecourse and sign up to receive your newsletter to continue building your knowledge base. Knowledge is power.

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