If there’s one thing that experienced fix and flip investors know, it’s that having a pipeline of business —a steady stream of flips— is a necessity to make your business sustainable. Not every flip will be the big win you anticipate it to be, so increasing the number of flips you do each year can ensure that you’re always on the right track to positive gains. But, how do you add a new surge of energy to your business and increase the number of flips you do each year?
Here are a few best practices that can help:
Streamline Administration
Don’t you hate it when a simple task, like posting to social media or making a couple of phone calls, sucks away half of your day? Time is money, and you have to find a good way to leverage it. Streamlining administration processes can make a huge difference. Getting organized and simplifying repeated tasks can save you a tremendous amount of time, which means you can focus on other more important tasks, like finding another good flip. For example, you could schedule your social media posts in advance by using a social media management platform. Save time on every project by developing a list of rehab costs for your area that you can use to price improvements. Create standard fill forms that reflect the information required by lenders so that you can easily gather information as you evaluate properties.
Find a Strong Group of Suppliers
Like it or not, your suppliers are your business partners. You depend on them to provide the materials you need on time, every time. You should be able to trust them to provide you with reasonable prices and great service so that you don’t have to make a bunch of phone calls to find just the right light fixture or front door. Those repeated phone calls to place or check on your orders are nothing but time wasters. A strong group of suppliers is vital to streamlining your business and increasing the number of your flips each year.
Hire Reliable Employees
Just like a strong group of suppliers is imperative to having a successful flipping business, so are reliable employees. A good employee is a treasure that should be cultivated and appreciated. They can save you an enormous amount of time and frustration by covering for you when you’re busy, coming up with great ideas, and helping you be successful. Provide them with fair pay, strong leadership, and a clear career path and you’ll have their loyalty for life.
Perfect the Art of Cost and Timeline
Estimating the cost of the project and projected timeline accurately can make or break your next flip. In a business where time is money, perfecting the art of cost and timeline can mean you have more money (and time) to add flips to your calendar. One way to do this? Find a contractor that you trust —one that can come out to properties in advance of purchase so you can accurately estimate costs and timeline.
Develop Relationships with Lenders
Another big time waster is trying to find needed capital. Traditional mortgage lenders want a lot of information about your individual credit history and income before even considering a loan. Then you have to wait weeks for approval, if you even get it. All in all, traditional banks are rarely set up to facilitate a fix and flip transaction.
On the other hand, real estate financing with organizations like Patch of Land who understand your business, can save you the time and frustration of running around in circles trying to find capital. When you develop lender relationships, raising capital (and reducing the time it takes to get it) can be much easier.
There are many ways to increase your number of flips per year, and it all starts with streamlining your processes and working with the right people.
