Building Your Keep &Flip Property Rehab Team
This title says alot….we keep and we flip….and one of the key elements of our property business is building and keeping our Property Rehab team. We have been in property since 1994. We were exposed to the not so rare disease builderitis….We have learned our lessons and think to all of everyones efforts one of our building teams has been with us for 5 years. This is the key…Pay on time…get over issues amicably and get the job done ASAP as time is money. In property there are always issues and problems. However solving these “issues” not problems immediately helps to move along the property business.
We hire builders to do the work they excel at, at each property we rehab. One of the crews does most of our rough and joinery work, and at times other builders do kitchen installations. Another team does our studwalls and decorating. And the other does our backyards.The houses get done fast and done right. Our contractors love it too; they get all the work they love to do at almost every house we refurbish. We’ve built an all-star fix and flip & keep rehab team.
Most builders will tell you they know how to do it all. They will tell you this because they probably can do it all. They also tell you this because they want all of the work at the property. It’s more profitable for them. But how do you know if they can do it all well, fast, and inexpensively? Simple.
You ask them what they’re best at, what type of work they enjoy most, and how much it will cost. Then, you hire the builder that is good at what they do and provides you with the most competitive bid. Repeat this step for each phase of construction at your fix and flip or keep property project and you’ll see your timeline shrink, and your profit expand.
We only sell some in order to lower our leverage and maintain liquidity. We just sold a Professional HMO to a Hong Kong gent in order to buy another block of flats. We held the Professional HMO in Salford. We were able to ride the uplift in Salford….collected rents and decided to roll the profits into a block of flats. We are trying to build a model in which keep some properties we purchase in redevelopement areas…with low LTV first charges…have the properties cash flow….maybe in a year or so there might be capital appreciation and we in turn generate 50-100% on our funds.
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