NJRealEstate
New Contributor
I am currently flipping residential properties, and have built a good team of contractors, laborers, decent attorney, and agent to list and sell. My problem is keeping my crew busy between jobs, and closings as I do not have the cash to do 3 or 4 projects at one time yet. I 24 years young, do not have a ton of cash (less then 100k liquid), nor do I have a huge income on the books (about 35k from slowlane job). All of which currently makes raising capital via financing a challenge.
So what follows is a brief outline of my plan to take my side gig rehabbing and attempt to turn it into a larger scale business that allows for far more cash flow. I do enjoy the project management portion of the flips, and my current slowlane job keeps me from managing my flips as effectively as I would like, but does not provide the cashflow to pay a PM, and mortgage on top.
Open a licensed contracting company specializing in Green construction (very popular in my area)
Create a well designed web page to showcase work, and act as a marketing page.
SEO the page by getting into various directories
Network and offer our services to various firms that refer contractors such as insurance adjusters, public adjusters, re agents, ect.
Possibly sign up to be an installer for the orange roof store and others if needed for extra cash flow
I believe that I could bid jobs, and PM in the morning and a few days a week, and have my crew work 5 days a week on homeowners projects when we do not have our own. The 30-45 day closing process will allow me to control the pipeline of work so my crew is ready for my jobs when needed, but also allows me to generate some additional cash, albeit not completely passive.
Take the cash from the flips and continue to reinvest, along with the cash from the contracting business to build my war chest to either 1. move up to bigger more profitable flips or 2. purchase a parcel of land to either subdivide and build or build new construction. The experienced gained from owning and managing a construction firm will give me more credibility to use to borrow more money to do larger scale projects, all the while I am grooming and training my team to handle tasks the way I would like them to be handled.
Please try and point out as many problems with my concept, and any ideas or suggestions you might have to speed up the process or save me from wasting time and money.
So what follows is a brief outline of my plan to take my side gig rehabbing and attempt to turn it into a larger scale business that allows for far more cash flow. I do enjoy the project management portion of the flips, and my current slowlane job keeps me from managing my flips as effectively as I would like, but does not provide the cashflow to pay a PM, and mortgage on top.
Open a licensed contracting company specializing in Green construction (very popular in my area)
Create a well designed web page to showcase work, and act as a marketing page.
SEO the page by getting into various directories
Network and offer our services to various firms that refer contractors such as insurance adjusters, public adjusters, re agents, ect.
Possibly sign up to be an installer for the orange roof store and others if needed for extra cash flow
I believe that I could bid jobs, and PM in the morning and a few days a week, and have my crew work 5 days a week on homeowners projects when we do not have our own. The 30-45 day closing process will allow me to control the pipeline of work so my crew is ready for my jobs when needed, but also allows me to generate some additional cash, albeit not completely passive.
Take the cash from the flips and continue to reinvest, along with the cash from the contracting business to build my war chest to either 1. move up to bigger more profitable flips or 2. purchase a parcel of land to either subdivide and build or build new construction. The experienced gained from owning and managing a construction firm will give me more credibility to use to borrow more money to do larger scale projects, all the while I am grooming and training my team to handle tasks the way I would like them to be handled.
Please try and point out as many problems with my concept, and any ideas or suggestions you might have to speed up the process or save me from wasting time and money.
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