By Mike Baird
In the real estate business, your reputation as an investor matters more than you realize. Building that reputation takes time, effort, and a lot of hard work. If you make a big mistake, your reputation could tank, and it’s even more challenging to get your reputation back after it’s been damaged. Getting a loan, finding the right contractors and securing the best rehab properties is much easier to do with a solid reputation in the industry. We here at Property Bank know it sounds easier in theory than in practice, so here are some ways you can start building your reputation from the beginning.
1. Follow the Rules
One of the biggest pieces of advice I always stress to new property investors is to follow the rules. Yes, there are plenty of businesses out there that conduct shady practices, and yes, sometimes they even make tons of money doing it. Eventually, though, it catches up to them, and the money starts to dry up. Unethical business dealing can cost you big time.
2. Keep Your Promises
Another big tip I stress is to keep your promises. If you say you’re going to do something, do it. When you put in an offer on a house, stick with it. People remember names in this business, and when someone breaches contracts or takes back an offer a few times, agents tend to start avoiding you. No one wants to deal with the hassle and inconvenience of that unpredictability.
3. Stand By Your Work
It’s also important to stand by your work. After flipping a house, most investors don’t owe anything to the new property owners if something goes wrong. That doesn’t mean you should ignore problems, though. Even though you’re not obligated to fix issues with your company’s construction work, you can put your business in a better position if you do. If your projects aren’t up to the quality that they need to be, you may find yourself without a buyer for the next house you’re trying to flip and sell.
4. Be Consistent With Payments
Paying your contractors consistently and on time is an essential part of a successful real estate flipping company. If you want to partner with a construction company that can do the best work and help you make the most money, you can’t mess up the payment schedule. The contractor community talks, and they all know which investors to stay away from. These are the guys who argue about every line item charge, take months to settle their balances or completely skip the payments. Those type of investors don’t stay in business very long.
5. Maintain Communication
The last important tip I have for you is to keep up with the communication. That means answering every email, returning every phone call and following up with every inquiry. If you are known for being hard to get in touch with, potential buyers or other real estate partners won’t attempt to contact you.
A strong and reliable reputation is one of the most valuable assets in real estate. Protect your reputation by following the best practices, and make even more money with your future projects.