1.- A Real Estate Attorney




When it comes to investments, it is important that you understand what you are signing regarding legal documentations and that you understand what you are getting into with the other party. Your loans have terms, time frames, and obligations therefore, it is important that you understand what they mean. Your attorney will be able to help you understand these contracts, regulations and the legal process for buying and selling the investment real estate. The attorney will help you protect your interests before signing a contract. Your attorney will review with you all the aspects of the transaction and will remind you during your project what is expected from you and when. The attorney should empower you to act with confidence knowing you have someone to turn to for good council and protection. As much as we all like to complain about attorneys, having a good one on your team can make the difference between success and failure.




 2.- A General Contractor




To get your project started, you need to have a skilled and reputable general contractor that will help you complete the necessary renovations using your specifications and your budget. It’s important to hire someone who is knowledgeable and can advise you and help you to achieve these goals. Your contractor should be able to help you keep track of your expenses, the various vendors and sub-contractors and provide the needed documentation for the lender as you make your draw requests.




 3.- Real Estate Agent




Some investors connect with a real estate agent to help them find “deals” to purchase, others use them only to sell the home once its completed and many utilize their services for both. A real estate agent is in a unique position to help you scout for the right “fixer upper”. When it comes for the time to sell, a realtor can be very helpful by aggressively marketing your investment. They also have access to marketing tools and strategies that can help you make your property stand out from the rest. Setting the right sales price is an important factor because you want your home to be a better value for your potential clients that are shopping in the area while keeping your profit margin reasonable.




 4.- Lender Partner




Seek a lender that has experience in commercial real estate. Preferably this lender would have a solid grasp on the building, construction and rehab projects such as the “Fix-N-Flip” concept. Don’t get too hung up on the interest rate as the major/reputable lenders will be very competitive in this aspect. For example, 12% interest sounds high, but the reality is that it is only 1% per month and only charged on the money you withdraw and use for the purchase and rehab. Keep in mind, you don’t want to hold this property for 12 months, you will want to flip it faster and a good lender partner can help you in the following ways. 1) Help you through the pre-qualifications process so you are ready to make a move quickly when you find a good deal 2) Help you with pre-purchases calculations/evaluations to help you buy at the right price. 3) Help you manage your draws with your contractor(s) 4) Accessible to you when you have a question about the finances or the project in general. The real value is finding a lender partner who can help you structure your financing so that you can get your project done right and on time.




 5.- Supportive Spouse/Trusted Friend or Family Member




This might not be what you expected to read but when a personal embarks on a new business (fixing and flipping is a business activity) and becomes an “entrepreneur”, it can be a little scary. It is important to have the support or at least the cooperation of your spouse because there may be times when you will need emotional support, financial support and support in making business decisions.




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