24/07/2022
Just thinking to myself after seeing (online) some terrible rush flips over the last two days. Maybe they don't understand fix and flip or they think the market (as it sits currently) will pay top dollar for a botched rehab. However, I hope if anyone is thinking of going this route as a side hustle or as a full time job. You need to realize, you're a business owner once you step into this realm, and being a business owner has nothing to do with rehabbing and selling houses. Your job has to do with creating systems and processes to allow your business to rehab and sell more houses. Think of it this way, if you could spend 3 months doing all the rehab work yourself (experienced or not) on your first house (maybe you've been doing this a while), and probably save $10,000 in contractor costs. Say you spent 40 hours a week for those 3 months working on this particular rehab, that extra $10,000 would equal about $20/hour in extra profit in your pocket. (Not bad, but considering minimum wage in WA is ~$15/hour...) But, what if instead you took those three months, and focused your time on finding five more houses, each of which generated $20,000 in profit? That’s an extra $100,000 in profit over that period of time, or more than $200/hour! Use systems, rely on experienced people (some you may know = friends & family discount?) And do the job right the first time.