REI School

Sixth Commandment to House Flipping: Build Relationships

November 25, 2024 | 3.5 Minute Read

SIXTH COMMANDMENT: BUILD RELATIONSHIPS

Relationships, whether personal or professional, aren’t about chasing people down. They’re about being your best self, putting that self out into the world, and allowing the right people to be drawn to you.

In other words, attract, do not chase.

 

So far, we’ve talked about the nuts and bolts of flipping houses: running the numbers, finding profitable strategies, creating momentum, minimizing risks, and managing contractors—the technical side of the business.

But flipping isn’t just about systems and trends; it’s about people. Building the right team, or what I like to call your “power team,” can transform your success.

Today, we’re diving into an essential skill that often gets overlooked: networking.

But first, let’s recap:

Ten Commandments of House Flipping

  1. Thou shalt know the After Repair Value (ARV)

  2. Thou shalt keep multiple exit strategies

  3. Thou shalt make offers daily

  4. Thou shalt leverage the inspection period

  5. Thou shalt not advance money to contractors

  6. Thou shalt build relationships 👈

  7. Thou shalt master Other People’s Money (OPM)

  8. Thou shalt view failure as a lesson

  9. Thou shalt respect the game

  10. Thou shalt be nice

 

Sixth Commandment: Build Relationships

If you’re new to hearing me shout from the rooftops about flipping houses, there’s one concept you need to employ:

POWER TEAMS

To flip houses like a top 1% investor, you need to master what I call “OPE”— Other People’s Expertise.

Here’s what your power team should be:

  • Lenders

  • Real Estate Agents

  • Contractors

They’re always on the team. I never do a project without them.

  • Lenders fund the deal

  • Agents write offers, market, and negotiate

  • Contractors handle the renovation work

The more power teams you build, the more deals you can close. The more deals you close, the more money you make. The more money you make, the more success you will have.

But how do you find these key people, especially when you’re new or scaling up?

Here are my top three methods for finding new business partners:

Online Networks

Online networks are a goldmine for real estate connections. I call this “one-to-many” networking because you can broadcast your brand and value to a large audience at once.

There are countless Facebook groups tailored to niches (like flipping or wholesaling) or specific locations. A single post in these groups can reach hundreds—or even thousands—of people.

In-Person Meetups

Local networking events are another powerhouse strategy. Websites like Meetup or Facebook can help you find investor groups hosting regular meetups. When I attend, I act as though I run the group—not by saying it outright but by making it a point to meet everyone, introduce myself, and genuinely connect. I ask what they do, what they’re looking for, and even try to connect them with others in the room. This approach establishes me as someone valuable, breaking the ice and naturally steering the conversation back to what I do. When I explain my business, I keep it short and sweet, tailored to the person I’m talking to (whether they’re an agent, contractor, or lender). Then I pause—dropping breadcrumbs instead of overwhelming them. Attract, don’t chase.

Cold Calling

Even though one-to-many networking is efficient, there’s still value in the one-on-one approach. Cold-call agents, contractors, and lenders when I need to fill gaps in my power team.

  • Agents: You can find them through Zillow’s Agent Finder. Reference their reviews, explain you are a cash buyer in the area, and outline that you need someone to write offers and sell your flips.

  • Contractors: These are trickier. Try Angie’s List, Craigslist, or Facebook groups, but your best leads often come from asking agents who listed recent flips for referrals.

  • Lenders: A quick Google search for “(State) Hard Money Lenders” yields results.

The Key to Success: Work the Room

It doesn’t matter if you’re new, nervous, or still learning. The most important thing you can do is put yourself out there. Meet people in the industry. See where your goals align. Be curious about others and how you can add value. It’s okay to be new—but it’s not okay to stay invisible.

This is a relationship-driven business. Treat it that way, and you’ll move closer to your goal of success.

Coming Up Next: OPM (Other People’s Money). We’ll dive into the power of using lenders to fund 100% of your deals. It’s a game-changer.

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