By Mike Baird
If you’ve watched Flip Men or you’re at all familiar with my approach to real estate investing, then you know that I’m a hands-on kind of guy. I love tracking down leads, helping motivated sellers get out from under their mortgages and getting my hands dirty in redesigning my flips. That said, I’m probably not always going to want to be quite as involved as I am now. Family time is important, and so is recreational time, which means I’m always looking for ways to let my flips run themselves when I need some time with the people I love or when I just want to take some “me” time.
You can probably relate, too, right? Whether you’re getting into flipping houses because you want to get out of the 9-to-5 world or because you want to add some side income to put away for your retirement, you don’t want to spend every waking minute flipping houses. If that’s the case (and I’m guessing it is), then you should follow these tips for getting more passive income out of your real estate investing projects.
Hire People You Trust — And Let Them Do Their Jobs
This is probably the most important tip I can give you if you want to grow your wealth without sacrificing all of your time. Whether you need a realtor, a project manager, a contractor or someone to handle your administrative tasks at your office — hire people you trust to be honest and to do their jobs effectively.
Then let them do their jobs. If you can delegate tasks, let go and avoid micromanaging your people, they’ll do more and better work for you. They’ll be more loyal to you, too, and you’ll find that you have a lot more free time on your hands as they take care of your business for you.
Show Your Appreciation
In addition to hiring good people and giving them the freedom to do their work, you should also show your appreciation for a job well done. Just telling your people that you notice and appreciate what they do for your business will go a long way toward motivating them to take ownership of their work and to do the best they can for your business.
Of course, you can help your business run itself even more with financial incentives, too. For example, you can offer a bonus if your project manager or general contractor finishes rehabs before a certain deadline. With that kind of incentive and a guarantee of more work on future flips, your contractor is going to want to do the best job in the least amount of time possible.
Work With Other Flippers
As you get more established and you start to build your capital, you might want to start sharing projects with other flippers. This way, you can build your relationships with them and their contacts as you build your reputation. Then when you’re ready, you can start acting as a private investor or lender instead of flipping houses.
In your first few years as a flipper, you’re going to be putting in the time and energy while you rely on others for the capital. As you build your wealth, you can transition to a new role where you supply the upfront capital and someone else puts in the sweat equity. Then you’ll have completely passive income, and you can focus your time on new investments, or on relaxing with your family and enjoying the benefits of setting yourself up with more passive real estate investing projects.