If you are currently working a full-time job and squeezing in real estate investing on the side, you may be considering how to make flipping properties a bigger source of income this year. It is even possible that you are planning to make the leap from sporadic house flipping to full-time real estate investment this year.
If so, here are some tips and tricks to get you started on the way to making a business of flipping properties that will support your family for the long haul.
1) Remember that if flipping is your main source of income, it must be your business.
That may sound like an obvious statement, but it is not one to be ignored. Successful flippers realize that flipping is not just a lucrative hobby. It must be treated like a business if you expect to receive business-sized income from it.
How can you treat it like a business? Here are some quick ways to stay on track:
- establish a concrete business plan
- design a formalized set of business processes to keep you on target as your business expands
- get a good real estate investment team in place to help you handle all the details
If you do not have a plan for how to accomplish these tasks, your first priority should be coming up with one before you quit your day job.
2) Think in terms of the whole picture rather than focusing on one deal at a time.
This shift in perspective can be difficult if you have been flipping properties on a part-time basis in the past. With just one property in play at any time, it is easy to focus entirely on each property from its purchase, through its rehab, and to its eventual sale.
However, hanging an entire business on the strength of one property at a time is a risky strategy at best. Shifting your focus to a large portfolio of properties requires discipline, the ability to multitask, and a great deal of solid organizational skill.
3) Learn the skills associated with running a successful business.
While flipping properties may always be your strong suit, it is important to acquire skills in other areas of business as well. Running a business entails a great deal more than having a hobby.
Building good relationships with accountants, lawyers, money lenders, and other business professionals will help you achieve success as a business owner.
Additionally, taking time to read industry news, network with other real estate investors, and access current information from appropriate government agencies will keep you up-to-date on industry trends and regulations that may affect your business.
4) Maintain your passion.
When flipping becomes a business rather than a hobby, it may at times be difficult to remember the reasons you began flipping properties in the first place. The added pressures associated with business ownership may dim the joy you once had in finding and flipping properties.
If that should happen, take a moment to relive the thrill of that perfect find. You know the one. It is the house whose potential no one else saw, the one that got your heart beating fast when you first saw it. It is the one you spent so much time on, pouring your heart and soul into restoring it to its full glory. It is the one that made you decide to pursue your dream of making a living doing what you love.
Remembering why you do what you do will help you work through the inevitable hiccups that come with starting a business in earnest. Taking stock of where you are in your flipping journey and moving to the next level will make 2016 a year to remember.
When you make the move from other employment to real estate investing as a career, we will be happy to help you realize your investment goals. Please contact us today to learn how our rapidly funded loans can be a part of your overall financing strategy as you establish and grow your business.