When you think plumbing, you think flood. When you think electric, you think death. When you think cabinetry, you stop trying to think. You want to fix and flip, but cannot tell your thumb from a nail.
You are constantly bombarded by all the money that could be had, if only you were more… handy.
The best advice you can get?
Stick to your strengths.
If you have everything (or want to), but the “handiness” aspect of real estate investing, do not fret. You can still make a killing.
Here are a few directions you can go, based on your skill level.
Option 1: Find A Partner
Working with a partner is a great idea for novice investors with no basic home improvement skills or no repair experience. Establish a legal partnership and put everything in writing. When looking for a partner, make sure they have experience doing fix and flips. There’s a huge difference between knowing how to fix and what to fix. Money needs to be put toward the most profitable items. Many people would rather do the labor than the paperwork/sales.
Option 2: Hire A Contractor
If you can hire out only for a few tasks, you can obviously make more in the long haul. Unskilled labor runs as low as $15 an hour, while skilled labor can run anywhere from $30 an hour up. For each project, get bids from at least three contractors. Look for any discrepancies between bids, and address them. Look for someone both competent and honest. When flipping multiple times, you can work with the same contractors, earning both discounts and loyalty.
No matter your skill level, there are things you can do to save more cash. First thing is knowing the cost of items- dishwashers, toilets, molding, sinks, paint, ceiling fans, etc. This will help you budget, and know what you are talking about when working with someone.
Also, you can take a few basic home improvement classes (often offered at your local Home Depot) such as tiling kitchen floors, replacing windows or basic plumbing. Being able to contribute some will save you big money down the road and if you still want to stay away from labor, at least you’ll know what’s involved and have more leverage.
Wanting Your Piece of the Cake
Real estate is the number one millionaire producing industry. If you have limitations when it comes to fixing houses yourself, you can still get in, AND be highly successful. Find a partner who wants to do the more “blue collar” role while you handle all the sales, paperwork, networking and logistics. Two is faster than one. And if you can do some things yourself, you are in an even better situation to make significantly more from every sale.
All this to say, start somewhere. START. You are not limited. You can do your part to think and grow rich.