by Middleton O’Malley

Anatomy of A Flip:

Have you heard the “I can teach you how to successfully flip houses” commercial on the TV or radio? If you have thought about signing up, first think about this.

Whether renovating a home for your personal use or flipping one for an investment, there are 9 things you absolutely need to know or have, in order to successfully complete a project.

This project was very exciting because it set in motion other renovations that transformed the neighborhoods look. I took great pride in it’s success.

These are the rules I used to make this, and other projects, successful in every respect.

1. Finance: Cash, or a sufficient line of business or personal credit to renovate. And add the ability to financially withstand the projected time required to renovate, plus a 90 day sale period.

2. A property that’s bought right, and located right: Pay too much for a property and you will sink your finances. Buy one with a bad location and your price and time on market will suffer.

3. Experience: Producing a quality renovation takes know how. It’s all in the details and if you don’t know what to look for, hire a general contractor.

4. Managerial skills: Without them you are at the mercy of your crew. If you don’t have them, hire a general contractor.

5. An architect: If a substantial renovation is necessary, hire one. They’ll create a plan used by your project contractors thus reducing costly mistakes. No matter how good you think you are unless you have experience, do it yourself renovations turn out like, do it yourself renovations.

6. A crew: They don’t appear out of thin air. It takes experience to create a good team that produces quality work. It’s one of the things a good GC can do for you.

7. Accounting: Keep track of every single penny you spend on a spreadsheet. You will need it to determine and defend your IRS exposure, and to provide accurate P&L info.

8. Don’t buy a house just because it’s a good deal. Sure, you have to buy right, but as importantly, projects must have a reason to be. Know, up front, who your buyer will be, (or what you want from your future residence), and the price point for that market.

9. A real estate agent: One who has renovation experience, one who can find your future home, and/or knows what to say to prospective buyers. Get one who can “talk the walk”.

The Importance Of Leadership Skills In A Real Estate Agent:

It’s important that your agent “talks the walk” – that’s the ability to explain in language that is unique to their field and compelling to colleagues and customers alike, explaining why what they do matters and how they expect to win. The only sustainable form of business leadership is thought leadership. And leaders that think differently about their business invariably talk differently about it as well. When you renovate, buy, or sell, you need an agent with leadership skills, and the ability to convey a compelling presentation that successfully closes your deal.