Investing in Real Estate - Your Team

Investing in real estate

or

flipping homes

to re-sell requires a team with solid knowledge, honesty and a solid work ethic. Finding everyone who meets these requirements isn't easy and it can result in delays. So you have to plan contingencies.

This week, the demo started on the house I invested in. I live and work about 2,500 miles away but I'm getting calls each day from the person supervising the work. He came to me with good references.

One of the reasons I trusted him early on was because before the work started, he spent 3 1/2 days with me helping set up our supplier network and going to the bank with me.

He himself is not making much money on the project but he said the reason why is he wants this job to go well so we can do it again.

He also tried to soften my expectations on how much money I would make. But we ran the numbers, budgeted together for all our expenses including dry wall, paint, siding and all other supplies.

Trust is a mighty big factor. Certainly, you can trust a person before the work gets started and then run into problems later. But if you can't trust them from the beginning then don't bother getting started at all.

It's better to walk away from what seems to be a profitable deal if you don't have the people in place who can truly help you.