Flipping property in the U.S. is easy with the right mindset

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While the great resignation may have started in the United States, the movement has definitely reached Australia, encouraging Aussies to rethink their values around work and redefine their lifestyle choices. It’s led to people looking for ways to have more control of their finances and free time, particularly by starting their own businesses.

 

Traditionally, building a business from the ground up involves business plans, business models, perfecting products and lots of marketing. It can take some time before your business really takes off so it might be a few years before you see any real returns.

 

Well, there are options available that will see you take off like a rocket. This is residential property flipping.

 

Flipping properties is a more flexible way to manage your money and time by your own rules, effectively making you ‘your own CEO’. It’s also a lucrative source of income since you can see a positive turnaround in only a few months, especially in the U.S. where the real estate market is red-hot.

 

As a foreign investor, investing in the U.S. residential property market has plenty of advantages, including low starting costs, more properties available and flexible short-term loan arrangements we just don’t have access to in the Australian property market.

 

We’ve helped hundreds of Aussies and Kiwis buy, flip and sell U.S. properties and know how to guide you through the process and avoid the traps first-time investors can fall for. While your first property purchase and renovation might be a little more tentative, you’ll soon gain confidence in the systems and your ability and set yourself up as a fully-fledged property flipper.

Why you should flip properties

To know if flipping property overseas is right for you it’s important to weigh up the pros and cons and learn the processes upfront. It’s a business best suited to someone with solid organisation skills who’s not afraid to show some initiative. If you find the challenge of flipping exciting you can do some more research to see if it will be the right fit for your lifestyle and financial goals, as well as your personality.

 

Not every property will be a winner so taking the time to assess the market (current and predicted) and check over the property details carefully will help in making a choice that will bring you significant returns on your investment.

 

Factoring in your overheads will give you a reasonable idea of the investment you will be making as well as the cost you need to sell for in order to see a quality return. There are plenty of upfront costs, including the property itself, building materials and labour, but these are considerably cheaper than anything you’ll see locally in Australia.

 

Lending in the U.S. is also a pleasant surprise for most Aussies as there are a lot of speciality lenders for short-term loans that are structured around flipping houses. They reward fast paybacks and will even include the cash to cover your building costs.

 

Aside from its profit potential, there are plenty of added benefits to flipping property. As the purchaser, you have the power to select a property you see value in and bring it to its best based on your ideas and what you see as potential. This gives you huge scope in terms of location, property type and price, just to name a few.

 

A few other benefits to property flipping include:

 

  • Lucrative returns within 6-12 months
  • Developing leadership and negotiation skills
  • Freedom to choose which property you want and when you want to pursue it
  • Contributes to your personal growth and development
  • Provides the ability to work anywhere
  • Great source of income
  • Choice of the investment size you feel comfortable with
  • Ability to choose your own work teams and support professionals

 

As you increase your portfolio you’ll continue to gain insider knowledge and expertise from professionals in the industry, allowing you to choose the best people to work with and open up more investment opportunities.

What you need to flip a property

When it comes to property flipping in the U.S. you need to be prepared. The initial excitement isn’t enough to propel you to the end of the process. You’ll need a solid plan and strategy that pushes you towards each new step so you can power through to the finish line quickly. A big part of this is making sure you have the right people with you.

 

For a seamless and cost-effective property flip, include the following essentials on your checklist.

1.   The right mindset

Having the right mindset is the most important aspect of flipping properties. You won’t be on-site to work on the property yourself, you’ll leave that in the hands of your skilled labourers. That means you’ll be responsible for ensuring that everything is in order and completed to a high standard. Getting this right requires a lot of independence. You need to have a proactive mindset to push your project forward.

 

As the primary owner and property investor, you need to evolve out of an “employee mindset” and into an entrepreneur mindset to take initiative and be proactive in your decision-making. You’ll be required to set and check short-term and long-term tasks from start to finish and pull any trouble back in line quickly. This will reduce the number of delays and oversights that crop up and put you in the control seat, rather than falling into reactionary responses that might come too late.

2.   A smart budget

The first step to flipping property is the biggest one: buying property. A property purchase isn’t cheap, especially as you’ll be looking for a great location and a solid building foundation.

 

The good news is that the prices of residential properties in the U.S. are pretty inspiring. As well as a bigger range of property types to choose from, property sales are much more affordable than in Australia and New Zealand. You won’t necessarily need to have a fat wallet to get started with flipping as a business and it is possible to get started in U.S property investments even without cash.

3.   A good team

Property flipping in the U.S., especially from somewhere as far away as Australia or New Zealand will require a hired team on the ground. It’s important you contract a group of professionals who are excellent in their respective fields and can work well together to coordinate different aspects and have your work finished on time.

 

Who you choose to have on your investment team will depend on you and the level of work you want to undertake, but there will be some core team members that will help make the going smoother:

 

  • A real estate agent
  • A lender (if you’re looking for alternative ways to finance your investment)
  • A contractor
  • A property manager

 

Flipping properties is a different experience from a traditional 9 to 5 job, so it’s normal to feel uncomfortable at first, especially as it doesn’t offer the same up-front stability as paid employment does. Keeping an open mind will help you learn new skills that are crucial in successfully flipping properties and allow you to develop your skills as an investor.

 

No matter what your budget is, big or small, conservative or luxurious, it’s essential that you have a smart budget and take the time to buy the right property starting out. Make sure you break down all your expenses, know what the realistic expected costs are going to be and negotiate with builders and suppliers to make sure everything stays in line.

 

As well as a recoverable price you need to ensure that your purchases and hiring costs still maintain a standard that will be desirable to future buyers and tenants.

 

If you want to learn more about how flipping properties will benefit you and how you can do it best, sign up for our Fix and Flip Academy and we can make property flipping a lucrative avenue of profit for you.

 

How to replace your income flipping residential properties

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Side hustles don’t always come easy. Trying to make extra money on top of your full-time job can be exhausting and stressful. But you don’t have to have a “hands-on” business to earn an extra income stream, it’s possible to find profit in non-conventional investments that are reliable and affordable.

 

Buying and flipping property is one way you can secure an extra stream of income–especially in residential real estate in the U.S. where the market offering is bigger and more affordable than in Australia or New Zealand.

 

House flipping has become one of the most popular alternatives to generating additional income as well as purchasing property as an effective long-term real estate investment. Everyone needs a roof over their head, so quality homes are going to remain in demand, especially a property fitted with modern appliances and finishings. Ready to live in, modern, bright abodes are attractive to buyers and renters alike, pushing them to pay a little extra for a state-of-the-art beautiful home, maximising your return on investment (ROI).

 

Many of our customers at Star Dynamic start out flipping houses in the U.S. for extra income. However, once they see just how easy and successful their investment returns are, they take their side hustle on full time and replace their day job to become fully invested in overseas property purchases. It’s an income pathway that is possible for any Aussie or Kiwi who is willing to put careful thought and planning into flipping property, allowing you to take full charge of your time and finances.

How does property flipping work?

Flipping a property isn’t as simple as tossing out an old rug or two–there’s a process and mindset you need to adopt if you want to see income success.

 

Purchasing a property that got a little wear and tear may come cheap, but it’s only the first part of the job. Flipping is a type of real estate investment strategy where an investor purchases a property with the intention of selling it for a profit.

 

You need to lay out a timeline for when you get appliances replaced, when you get your team to slap on a fresh coat of paint and everything else you want to do to the home to modernise it or outfit it with new, cosmetic additions.

 

To make your money’s worth and make the most of your flip, you need to ensure that you and your team are working with urgency but not skipping steps.

 

Relative to other types of property investment, you need to focus on the speed at which you flip your property so you can secure the most profit possible without having to worry about additional costs that pile up with every day that passes. Expenses that you should keep in mind include:

 

  • Mortgage
  • Utilities
  • Property taxes
  • Insurance
  • Homeownership costs

 

To do this, you need to get the right team to support you (especially since you’re so far away and different timezones can create communication issues). Hire real estate agents, contractors and specialists who will do the heavy lifting for you so you don’t have to manage it yourself.

Create a comprehensive timeline that factors in the building stage, material gathering stage and marketing stage. When you’re able to lay out how much time you’re spending on a property, you’re able to figure out when it’s best to sell. Move with urgency–that way, you can get the most of your investment.

How can you make a profit from flipping residential properties?

Properties that aren’t quite up-to-date, are older or have some damage are often sold cheaper. Owners want to get rid of their property quickly and there are fewer buyers making offers since not everyone is interested in putting in the work.

 

To make a profit flipping property you need to purchase a property at a price low enough that you can make the changes needed and still have a reasonable resale price with some left over for your wallet. Selecting the right property is important as renovations alone won’t necessarily add value.

 

When you treat house-flipping like a business instead of as a side hobby, you secure a better understanding and mindset around it.

 

A business mindset takes into account that your time is money too. As well as the financial investment, think about how much the time and energy you spend flipping a property is worth. Fast turnarounds and proactive planning can reduce your time costs and make your investment worthwhile.

 

One way to win back some of your time is to spend money on building the right team to do the work for you. It may seem counterintuitive, but it will significantly reduce time and increase quality and efficiency to have a qualified and experienced team based in the U.S. to handle everything for you.

 

Your on-the-ground building and property team will:

 

  • Be your eyes and ears to keep you informed on timeframes and progress
  • Use their expertise in real estate and renovation to speed up the flipping process
  • Reach out in their network to contact the right suppliers
  • Have the certifications and power to take on several fixes at once instead of painstakingly installing only one thing at a time

 

Having an efficient property team will enable you to see quicker returns, which is what you need to aim for to avoid shelling out more in terms of homeownership fees and loan interest.

3 things to consider when replacing your income with flipping houses

There is more to flipping houses than meets the eye which is why learning all you can about the process and following proven, successful flippers is crucial. Residential property flipping is a business, so you need to plan and comply with the relevant regulations. It’s important to lay out a strategy and do background research to know every step of the process.

 

Before you take the plunge into investing and flipping your first home in the U.S. be fully prepared by taking in these three essential considerations:

1.  Know the stages you’ll go through

While in Australia the cost-effective flipping process is to have the builder’s knowledge and skills to get in with a sledgehammer and do the manual labour on your property yourself. In the U.S., property prices and availability give you so much more for your budget. This means you can afford to approach your property renovation project in different ways. Some savvy property investors have generated returns without being close to the sites themselves so it is possible to look abroad and see significant returns without having to lift a finger– or hammer.

 

If you are hooked on a good thing there are some steps you’ll need to cover in order to replace your income with profits from flipping houses. To move from a side hustle to a full-fledged business here are the steps you’ll need to cover:

 

  1. Craft a business plan
  2. Expand your network in terms of real estate professionals
  3. Figure out what kind of business entity you want to be
  4. Find out what kind of permits you need
  5. Put together a team you can trust
  6. Secure financing

2.  Do your due diligence before buying a property

One size doesn’t fit all. Every property you buy will have different repair needs, features and appeal. There are plenty of factors that contribute to a property’s value, so make sure you tally them all up to see how appealing your resale will be.

 

Some factors that affect value include:

 

  • Property type
  • Location
  • Neighbourhood
  • Surrounding infrastructure
  • Current market conditions and expected short-term growth/decline

 

When you know what makes a property stand out so you can minimise its weaknesses and play to its strengths you’ll get a better return on investment. You’re not just swapping out a fixture or two, you’re really looking at what people want.

 

In addition to the property research, make sure you read the terms and conditions carefully. Additional costs and repair expenses might be hiding in the fine print so it’s wise to review both the contract and the property thoroughly.

3.  Get the right support and guidance

Business owners partner with coaches for expert advice and new perspectives. House flipping businesses need professional guidance in this way too. Guidance from coaches and advisors in the property space can help you decide what property price is right before your renovation work starts cutting into profits. They can go above and beyond the standard flipping rule of thumb of 70% for a fixer-upper, or reassure you in case the market calls for more patience.

 

An advisor with the right experience will know their way around the market and be used to the ebb and flow to help you navigate price fluctuations and get your timing right.

 

Support from coaches can also prevent you from getting stuck in known or tried-and-true avenues that will limit your reach and property appeal. They’ll be able to coax you out of your comfort zone and break ‘boundaries’ to make property changes that will stand out.

 

Replacing your income by flipping properties is a great way to earn profit and gain a sense of accomplishment with the homes you renovate and refit. When buyers snap up the properties you’ve invested in, you’ll see how far a little planning and patience can go in transforming a less-than-perfect property into a dream home.

 

Finding success in the house flipping business in the U.S. is more than possible, especially if you get the right guidance and support. At Star Dynamic, we use our years of proven success in flipping houses in the U.S. residential market to be able to provide an exclusive training program – our Fix & Flip Academy. We’ll teach you the inside secrets to investing in U.S residential property as well as how to take your side-hustle to a full-time property flipping business that replaces your regular income. Click here to be added to the waitlist for our upcoming training.

 

U.S Interest Rate Rises – should we be concerned?

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There are a lot of eyes on the Reserve banks everywhere with the constant talk and gossip of interest rate changes. Truth is, we are going to expect some changes in the coming 12 months as we have had abnormally low-interest rates that aren’t sustainable long-term.

Overnight, the U.S. Federal Reserve increased interest rates by 0.75%.

What does this say from all the gossip?

It’s important to remember that gossip is gossip when it comes to interest rate changes and the people you should listen to are the Central Banks.

Early reports were showing a very possible 100-point rise (1%) in July. Then they changed their mind and were saying last week there is less than a 50% chance of that happening.

Plus, economists were suggesting that it could even be as low as a 15% chance.

Let’s explore what this all means.

Let’s map out the main difference between U.S. and Aus mortgages.

Well, firstly there are several very important differences to note between the U.S. and Australian financial markets.  Let me list a few of the major ones here:

  • Most U.S. mortgages are what they call Fix Rate Mortgages

Meaning the rate is fixed for the life of the loan (often 20-30 years).  While here in Australia, our mortgages are generally variable rates, meaning the rate changes at the whim of the banking institutions.

This is important to note because as a homeowner with a mortgage, as interest rates increase, there is generally no additional financial pressure on the family budget.  The mortgage rate is fixed and does not change.

This would only be of relevance if the homeowner was looking to refinance, realising they would need to refinance at a higher rate.  As interest rates in the U.S. rise, we do see fewer homeowners looking to refinance until the market settles down.

 

  • Private equity lending

These are loans offered by companies or investors using their funds. They are a massive part of the financial sector in the U.S.  In fact, stats have indicated it has just risen to over 50% of all loans taken.  Here in Australia, private equity is a tiny piece, with more than 90% of loans, particularly for home buyers, using conventional funds (the big banks).

Again, what this means is that private equity lenders do not follow as strictly, the cash rate of the central banks but often follow the principle of “he who has the gold, makes the rules.”  They can set their rates and conditions (within reason) and often can be higher than conventional lending anyway and may not choose to increase rates as they are often not borrowing funds from central banks to lend to their customer base.  While they need to be mindful of staying competitive there is certainly more leeway as a private equity lender to set rates.

 

So, if the rate rises have less impact on homeowners in the U.S., how do the interest rates affect the residential housing market?

Rate rises usually slow the markets down in a couple of ways.

  1. Fewer buyers out there
  2. More panic sellers
  3. Increase in rental demand

As the rates rise, you may see fewer new home buyers shopping around, realising they need to factor in higher interest rates.

While they may have budgeted in a 3-4% interest rate and been able to afford such, now they are looking down the barrel of a 5%+ rate which may stretch them, so back to the drawing board and more savings.

‘Fairweather investors’ often also fall for the doom & gloom reporting from mainstream media and may start to pull out of the market, waiting for the ‘almighty crash’ which inevitably does not come.

Both these factors can then present less demand in the housing market; therefore, properties start to linger longer on market, sellers start to drop prices to sell quicker, and we start to see a drop in median price.

As investors, this is great news.  No longer are we lined up with 5 other interested parties when trying to purchase a property and finding that the property sold for above the original list price.  Plus, with less demand for properties, particularly if the properties need some work (a Flipper’s bread and butter) we can start negotiating harder on the prices and pick up some much better deals.

Remember too, that these interest rate rises, particularly in the U.S. but here in Australia as well, are not really in play to try and soften the housing market.  Both countries (not certain about NZ though) are not concerned with the hot real estate markets, but more about the high inflation rates in the countries.

Rising interest rates have less impact on the household budgets and therefore, unfortunately, less impact on inflation, particularly supply-driven inflation which is what we are seeing here.  When inflation is more about the lack of ability of supply chains to match the demand, rather than extraordinary demand for goods and services, increasing rates tend to have less impact.

Supply chains tend to catch up anyway, often just needing time to put infrastructure and labour in place.

Large rises though, as the U.S. has seen, kicks off the mainstream media spreading their FUD (fear, uncertainty, doubt) and it is more often this rhetoric that starts slowing things down as the masses start to believe there is a crash coming.  The herd mentality starts to take effect and spending starts to slow.  Even homeowners can fall for this, assuming the value of their home will plummet, and therefore attempt to sell before this happens.

This tips more homeowners back into the rental market, along with the new home buyers who start to wait for a ‘correction’ before buying in and increasing the demand for rentals strongly.

As investors, particularly foreign investors, this is again, excellent news.  This can bring with it, cheaper labour costs, cheaper materials, certainly purchases and high rental demand for properties.  The other benefit is that we do not have to live day-to-day with the impacts of rising rates and high inflation in the U.S., but are still able to take advantage of the benefits of investing.

So, while the media would have us believe the uncertainty, there is quite an ‘aligning of the stars’ when it comes to investing in the U.S. residential market.  With cheaper properties, reduction in labour and material costs and still solid demand for properties (either purchase but particularly rentals) it is an ideal time to diversify your portfolio and invest in international markets.

 

With lots constantly changing, it can be a bit overwhelming to keep up with everything. That’s why I send out a weekly newsletter that gives you a snapshot of everything that’s happening when it comes to Aussies and Kiwis investing in the U.S.

Hit the link below to subscribe.

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When to hire a licenced contractor (and when not to)

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The possibilities for real estate investment in the U.S. are endless–it’s no wonder Australians and Kiwis are so attracted to it. The range of properties is staggering and so are the dirt-cheap prices.

 

When the time comes to upgrade or update your U.S. investment property, you might be tempted to go the safe route and hire a professional contractor. It is something we suggest for big property overhauls, renovations and extensions, but it’s not always necessary.

 

The amount of help you need comes down to how big your work project is. If it’s a small handyman job, a licensed contractor may be overkill, especially as your contractor may charge a lot more.

 

A licensed professional contractor will give you the highest quality and coordinate your U.S. team across a big job, but you can scale down and use a no-frills handyperson for smaller projects and get significant returns without lifting a finger.

 

If it’s a job that can be accomplished with just one person (compared to having to take on an entire team of tradies), you might just want to reconsider who you hire–your budget will thank you later.

What does a U.S. licensed contractor do?

General contractors in the U.S. oversee construction and the hands-on building across a worksite from beginning to end.

 

They are in charge of hiring, managing and overseeing a multitude of tradespeople and subcontractors called into work on various aspects of your worksite. This can include electricians, plumbers, plasters, carpenters and roofing specialists.

 

To do their job well, they’ll need planning and leadership experience as well as knowledge of building sites, quality control and communicating with suppliers.

 

There are big benefits to hiring a contractor, including:

 

  • A smooth and seamless workflow
  • Timely communications
  • Quality control
  • Access to a trusted and known labour force

 

General contractors also have to assess the feasibility of the project, approximate how long it will take and provide you with a budget that covers all the expenses.

 

Not all contractors have the skills needed to handle your job. Make sure you do your due diligence and background checks and cover the five contractor must-haves .

When should you hire a licensed contractor?

When faced with bigger jobs or renovations that require a number of different trade specialists, hiring a general contractor is your best bet.

 

A general contractor knows what makes a quality build and how to finish everything to perfection. Finding a good contractor comes with several benefits and helps you:

 

  • Avoid accidents and costly mistakes
  • Get the job done professionally
  • Maximise efficiency
  • Keep your project on time
  • Troubleshoot issues as they arise
  • Get the job done correctly the first time

When should you hire a handyperson?

Before looking into general contractors and tradespeople for your residential real estate investment property in the U.S., evaluate the amount of work that needs to be done.

 

Is this something a handyperson can take on themselves? Short-term projects that don’t require a lot of supervision, permits or time are perfect projects an odd-jobber can accomplish for you.

 

You need to consider the size and complexity of the project and see if it’s an undertaking that a one-person team can handle. Breaking down the entire project into smaller, more manageable tasks can help you evaluate whether or not these small steps are things that require an entire roster of subcontractors or one skilled tradesperson or handyperson.

 

Usual jobs that can be handled simply include:

 

  • Shelving
  • Painting
  • Laying carpets and ready-made flooring (floating floors, linoleum)
  • Window repairs and screens
  • Shutters
  • Doors
  • Ceiling fans
  • Repairs and maintenance

 

If these items fall under an odd-jobber’s listed expertise and skills you can omit hiring a contractor altogether. Just make sure you do the same due diligence with your background checks here with:

 

  • Checking relevant trade certificates and qualifications
  • Asking for referees
  • Looking over client testimonials
  • Asking for previous experience and work history

 

When it comes to power tools, ask them what they own already and what needs to be hired along the way. They should be able to tell you their needs quickly and accurately as well as provide an upfront estimate that includes all the items you discuss in your screening call.

 

Renovating or updating your investment property from Australia, or even interstate, certainly has its challenges. Having the right support and skilled workers you can trust will give you peace of mind to look after your U.S. residential real estate and keep it looking its best.

 

The choice of who to hire is a big one. Whether you choose a general contractor to oversee the project or a handyperson to add those finishing touches, it’s important to gauge their skills and assess their ability to handle the workload with reference checks.

 

Having a trusted property management team available locally can help keep an eye on things for you. Talk to your U.S. real estate agent or property manager about dropping in to check on work progress so you get much-needed eyes on the ground.

 

If you are interested in flipping a U.S. property for profit, take a look at our Fix and Flip Academy offer on our website. This online, self-paced course gives you all the information you need to get started.

 

For any further advice on buying a residential investment property in the U.S. or building your ground crew, give the Star Dynamic team a call.

 

5 contractor must-haves to make the best of your property investment

5 contractor must-haves to make the best of your property investment

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The way your property looks and feels will make or break your sale–and those factors rest on your property investment team’s contractor. It’s important to hire a contractor you know will get the job done professionally and effectively.

Hiring a contractor to oversee your property renovation gives you direct access to an expert who can manage all the moving parts for efficient project completion including project coordination, consistent quality control and timely and accurate communications.

Without a contractor, you run the risk of shelling out more money than necessary in case of damages. Your property may not look as seamlessly finished, and handling the tradespeople may not be worth the time, effort and money if everything is disjointed and communication is poor. To make the best of your major property renovation and upgrade, you need a contractor.

You can’t just get any old contractor, however, you need to find a good contractor who works with your needs, responds quickly and is in sync with your communication style.

While it will take a little extra time to go over resumes and conduct background checks, you will have security around your renovation work knowing everything will be done on time to the highest possible quality. As well as reducing your stress, hiring a professional will maximise your chance of a great return on investment.

As an Australian investing in residential real estate in the U.S., it’s possible to see amazing profits, especially when you overcome the challenges of time zones and distance. The way to ensure this is through hiring a skilled property management team on the ground, starting with a contractor you trust to coordinate your project. Getting that right means you can rest easy and let the extra income roll in.

Why hiring a good contractor is important

Finding a good contractor is essential to keeping your property improvements consistent, on time and in line with the vision in your head. Your contractor will help keep your project on track by overseeing essential tasks such as:

  • Hiring qualified subcontractors
  • Coordinating with suppliers for materials
  • Addressing and relaying build status
  • Overseeing build quality and timeliness
  • Managing construction workers

As the most hands-on member of your team, they’ll have a direct impact on your property renovation timeframes, consistency and quality. The right contractor will also bring engaging energy to the project site which can change the pace and worker motivation for the better –from simple refurbishments right through to property overhauls.

The benefits of hiring a good contractor far outweigh the costs and will assist you by:

  • Saving time and money overall
  • Providing access to their trusted subcontractor network
  • Giving support and feedback to workers on site
  • Reducing and simplifying your workload

Five things a great contractor needs to demonstrate

The right contractor will oversee your project to ensure you have the best quality renovation possible and show that they have the ability to seamlessly handle every subcontractor and tradesperson working on your property. Here are five things that your contractor needs to demonstrate to be the most valuable part of your team.

 

1.  A proper licence

The most important thing you need to secure is a copy of your contractor’s licence. A photocopy or photograph of the licence is enough to cross-check with online databases that store professional contractor information and ensure it’s legitimate.

Licence conditions vary from state to state so you will need to do your research on what is required for the state your property is located.

 

2.  Insurance and property damage coverage

A professional contractor will have general liability insurance to protect against any kind of loss and mitigate risks.

As well as your property damage, there also needs to be protection against damage to worker property or personal injury to workers as well, especially in the U.S. where hospital costs run into the hundreds of thousands.

As well as protecting your investment and ensuring the wellbeing of workers, a contractor who has taken the time to secure general liability insurance is demonstrating their professionalism and how seriously they take their job.

 

3.  Past experience, customers and social proof

Your research into who you hire will need to go deeper than just the testimonials they provide as part of their resume or website. No one is going to post a bad review of themselves. To get the social proof you can trust you need to cast a wider net. Google is a great example of a research resource as your candidates can’t manipulate the greater web.

Look for past client reviews, follow up on case studies to get more information and dig as deep as you can to see what they are really like to work with. If there is a negative review, give them the benefit of the doubt and ask them about it. Not only will this show you both sides of the story, it will also give you an idea of how they handle situations.

 

4.  A legitimate network of subcontractors

An experienced, reliable general contractor should already have subcontractors in mind or people they’ve worked with in the past.

 

This will give you legitimate shortcuts in finding and hiring a team that not only performs to the contractor’s standards but already knows how to work well together. This will reduce the likelihood of walkouts and reduce team standup times making your flip timeframe shorter.

 

Who your contractor selects will also show how well they know their job and the specifications involved for your type of renovation work.

5.  Keeps accurate job files and bookwork

While trade work is hands-on and active, it also comes with paperwork, lots of it. There are subcontractor contracts, plans, permits, order forms, blueprints and easements that all need to be carefully filed and referred to multiple times throughout the project.

 

A contractor needs to be practised in keeping everything in writing and accessible. This is important when working with someone regardless of your location–but even more important when working interstate or internationally.

 

The contractor should be able to provide you with a high-level overview of their systems and communication methods which should predominantly be digital (as I doubt you want multiple calls throughout the night to answer one simple question). This will also give you an indication of how they run their business at large and their professional abilities in being organised and reliable during a hectic and complex building project.

 

At the end of the day, hiring someone interestate vs. overseas isn’t that different. You want to ensure you are hiring a trustworthy and professional contractor to oversee any property investment renovations.

The main takeaway from this is to ensure that you don’t solely rely on an interview. It’s important to carry out the required background checks to make sure they have the qualifications and work history to back up their resume.

Not only will these extra measures reduce the time and effort required for worksite check-ins, you also help create a better team on the ground who are responsive, quality-checked and working to schedule.

If you are interested in flipping a U.S. property for profit, take a look at our Fix and Flip Academy. This online, self-paced course gives you all the information you need to get started.

For any further advice on buying residential investment property in the U.S or building your ground crew, give the Star Dynamic team a call.