Why Real Estate Partnerships Are More Beneficial Than Tackling a Flip on Your Own

The interest in flipping properties has grown over the years, thanks partly to the abundance of TV shows promoting it. Within a 30 minute to one hour time span, these shows summarize the process of acquiring, rehabbing, and reselling a home for profit. They make it appear fun and interesting, but with some added drama here and there for ratings. If you are thinking about tackling a flip on your own, it’s important to understand the intricacies of the process that television shows often fail to convey. You may quickly learn that real estate partnerships are more beneficial than tackling a flip on your own.

Identifying Properties

The first step to flipping properties is identifying and evaluating potential investments. This requires assessing its condition, rehabilitation costs, and potential resale value. It is inherently mistake-prone, especially if you do not have extensive previous knowledge and experience. Any number of issues can arise including missing serious issues with a property, underestimating costs for repairs, and miscalculating market values. Such mistakes could completely throw off the financials and lead to losses rather than gains.

Managing Rehabilitation Projects

Once you have selected a property, it’s time to manage the rehabilitation process. Among the typical tasks are:

  • Making design decisions.
  • Selecting and ordering products and materials.
  • Obtaining necessary permits.
  • Hiring contractors (architects, electricians, plumbers, general contractors, landscapers, etc.).
  • Managing demolition work.
  • Scheduling work to be performed and coordinating between multiple contractors.
  • Monitoring day-to-day progress.
  • Managing cash flow and accounts payable.

The process can be time consuming and require knowledge in a wide range of fields.

Marketing the Home for Resale

Once rehabilitation is completed, it is then time to market the home for sale. It involves, among other things,…

  • Decorating and staging.
  • Determining list price.
  • Selecting a listing broker.
  • Reviewing offers.
  • Completing pre-closing tasks.
  • Finalizing the sale.

These decisions can make a big difference in the success of your flip. Price a home too high and it will sit on the market and grow stale. Negotiate incorrectly and you may leave money on the table or lose a sale. Miss a step in the pre-closing process and you may delay a closing.

Why Real Estate Partnerships Are More Beneficial Than Tackling a Flip on Your Own

This information is certainly not meant to “scare” you. Plenty of folks tackle a flip on their own. However, most people know a lot about one thing and know very little about a lot of things. This means that as an individual, it’s unlikely that you have extensive knowledge and experience in every decision and task required to flip a home.

Now, imagine that you had a team working on your behalf to complete a flip. That team consists of multiple experts, each specializing in an aspect of flipping a home. Add to the mix the wealth of resources available to this team because of their in-depth knowledge and established network.

Such a team would have access to more potential properties, accurately evaluate the work required to rehabilitate each property, and accurately estimate the cost of repairs. Additionally, the would have access to more quality contractors, be able to purchase materials at a lower cost, and efficiently manage rehabilitation projects to reduce the amount of time needed. Lastly, that team would also know how to position a flipped property for sale through the staging, listing, negotiating and closing process.

Naturally, the efforts, experience, and resources of real estate partnerships would achieve better results than one individual trying to tackle a flip on their own. Homes would be completed more quickly and with greater profits. This is exactly what Homes, Inc. is offering through our real estate investment partnerships in the Southern California real estate market! Join our partnerships to maximize your return on investment.