The Best Way to Fix and Flip

[Tom Olson]

Recently I was asked to teach a webinar on fixing and flipping houses. It’s a popular topic these days, with TV shows, books, blogs, and everything else giving their input, so I jumped at the opportunity. I figured I should throw my hat into the crowded ring, and give my two cents on the matter. Here is the condensed version of my lesson.

In an effort to not be vanilla, let me start off by saying that in my opinion, the way everyone teaches on how to fix and flip is completely wrong.

Before you get angry with me, let me explain. I used to be there. I started out in construction, and I still am owner of a construction company. I do scores of flips every year. I am part owner of an investment company, and one of our main focuses is flipping properties. So I am very comfortable in saying that I have definitely tried flipping houses the conventional way. And I also feel comfortable saying that this way is not the best way.

The best way to fix and flip is actually something that you maybe never heard before, the best way to fix and flip is NOT to do it yourself. The best way to fix and flip is to leverage somebody else.

It is to leverage other people's manpower, other people's systems, other people's skill, other people's connections, and other people's knowledge.

I have many times found myself bogged down in the middle of a project, getting nickeled and dimed from every possible source, and becoming overly frustrated. For me, this is the worst case scenario. I talked to another investor recently who lost thirty thousand on a recent flip. It’s an incredibly frustrating business. I would much rather leverage someone else’s willingness to do the work for me, and pay them to take on all the risk and all the overhead.

The best way to fix and flip is to sit back and let an expert do it for you! This lets you use someone else to do the work. Hire a manager to oversee the project. Use a wholesaler to find a property. Use a construction management company to do the work. Use a realtor to list your property. Don’t get bogged down in the details, just sit back, find the project, and let someone else do all the work for you!Really, this is not a new business model. If you look at the construction industry, companies hire contractors, contractors hire subcontractors, and so on. The company leverages the management ability of the contractor, the contractor leverages the expertise of the subcontractor, and the work gets done.

Essentially, the best way to do it is to not do it at all! Let someone else deal with all the problems, let them have the hassle. You just sit back, pay the bills, and make the profit.

I’ll finish with one of my favorite phrases: “Experience is not the best teacher: someone else’s experience is!”