Finding teams for flips in out of state markets
Hello,
My wife and I are out of country investors from Canada that are nearing completion of our first 2 flips, in totally different markets with different teams. I have found that for flipping, the team is more important than the specific market. Meaning, if we have the right people to help us, that's got the biggest impact on our potential success. The market of course needs to have some opportunity, but that can be any market where the team is right.
Wholesaler/realtor/ontractor
As a realtor myself, when I work with investors, especially those that are not local, its imperative to find the right house with the end goal in mind. It needs to make sense in so many different ways, so having the right realtor to do that is imperative. Then of course having a contractor that cares about the project and that does good work and is trustworthy. We find it best when the realtor already has a relationship with the contractor and can help as a project "overseer". Not just to help us, it is also in the realtors best interest to make sure that the house turns is completed in a way that will hit the projected ARV. Having a wholesaler to source off market deals is also great, even better when they have a contractor to do the work, and a realtor to substantiate pp and comps for ARV and then to list. Its tough to find all these right people separately and bring them together, we feel its much better when we can meet a team that is already established to help everyone better succeed.
We plan to use one of our teams again (realtor/contractor) but are hoping to find other teams to work in within their respective markets and would like to connect. Finding these teams is what we are working on now, and could use some help.
We have also found that while we build up our experience, the fix and flip loan financing still requires a significant down payment, 30-40% of the purchase price. I am told that once we have at least 3 completed flips that this will improve and we can get it down to 10-15% and then perhaps even lower with more experience. In the meantime however, we are also hoping to find a team that has a member that could partner on a deal with us so that their experience can get us better financing.
I'd be happy to get any feedback or guidance on finding these teams. Thank you.