New Investor Mistake #3 Good morning my friend! Zack here with New Investor Mistake # 3. Money is either made or lost during the renovation phase. Even after 804 real estate transactions and counting I struggle, at times, with the rehab phase. So, New Investor Mistake #3 is: Not Preparing For The Rehab Phase 1] Create a detailed Scope of Work clearly explaining everything you want done to the property. It is not sufficient to say "Drywall where needed". Instead it should say "Drywall north wall in rear bedroom, 3rd floor". Be detailed so there is no confusion as to what you meant. 2] Walk contractor through with your detailed Scope of Work so you both understand what will take place. This is a great time to point things out to your contractor and its also a great time for your contractor to point things out to you. 3] Get everything in writing. Don't ever start a project without a written Independent Contractor Agreement. As a client of ours, these are provided to you, free of charge. 4] Watch your project closely. You should be on the jobsite at least twice per week. On your off days you should contact your contractor by phone to make sure everything is going as planned. The second you stop showing up and calling is the second your project will stop. Be diligent about this. You will want to make sure your contractor is following a logical rehab progression. I suggest following this schedule: Demolition / Trash Out Roof / Windows / Siding / Gutters / Structural HVAC / Plumbing / Electrical
Framing / Subfloors Drywall / Patch and Prep Paint Kitchens and Bathrooms Finish Items Owners Punch Out List Carpet Install Cleaning / Landscaping While rehabbing properties is never easy, and unfortunately will probably never be easy, it is manageable, if you follow a few simple rules. I hope this article helps you become a better rehabber. Take care and as always I wish you the best of luck in all of your endeavors. If you are not yet a client of ours log on now and watch our free Introduction Video where you will learn how to buy your first MONEY MAKING property in 4 weeks or less! Log onto PaDeals.com right now to be part of the most exciting real estate opportunity found anywhere. PA Deals, LLC
Published on May 3, 2011
1] Create a detailed Scope of Work clearly explaining everything you want done to the property. It is not sufficient to say "Drywall where n...