Can't build projects fast enough help!

[John Mathewson]

So our flip company is doing very well, we are finding plenty of great houses and have several good investors right now, Problem we are having is getting our houses built. Some of our houses sit for 2 weeks before we start construction. We use a great contractor who is a part of our company and does phenomenal work. However his crew can only do so much. Looking for some insight on how to scale our company to rehab more houses. Currently we are on track to do 20-30 our first year. Next year we would like to get to 50-60. any thoughts would be greatly appreciated!

[Lance Johnson]

@John Mathewson - If you are having trouble getting your current volume churned, I'd advise extreme caution on growing your numbers. You need to solve your problem of scale first, otherwise, you may find you are sitting on properties for 4-6 weeks instead of 2. You can only squeeze so much more productivity out of existing team members, so if your current team has no more capacity, the only option is to build a bigger team.

If your contractor is great, he should be pretty well connected to refer you to other great contractors. Some people are hesitant to refer people away from them because they want more business, or "more pie." But what I think too many people fail to realize is that there are two main ways to get "more pie." The first way (that most people think of) is that they are fighting for a bigger piece of a single pie - in order for anyone to get more, someone must be getting less. The other (and better) way, though, is to just make more pies. Sure, you might get a slightly smaller piece of each pie, but on the whole, you're going to have a lot more pie, and so is everyone else.

If you can't make more money bringing on other contractors to do your 50-60 flips, then it sounds like the basic economics might not make sense.