How I Went From a 6-Month Rehab on My 1st Project to a 45-Day Rehab on My Most Recent Project

Hey everybody!

Welcome to another edition of “The Financial Freedom Blueprint” where we discuss the topics of real estate and financial freedom.

Today’s topic will be helpful for active real estate investors who are struggling working with contractors.

This is a common issue for many people when they first get started in real estate investing.

I can also relate because I used to be there to:

-I didn’t know how to pay them

-I didn’t know how to check their work

-I didn’t know how to keep them on schedule

However, after overseeing several projects, I have learned a few things over time that helps keep the project moving forward on a consistent basis.

In today’s newsletter, I am going to show you how I went from a 6 month rehab project on my first fixer upper to a 45-Day rehab on my most recent project.

To begin, anybody that has worked with contractors knows it can be difficult.

However, we must build a solid working relationship with contractors since they provide a great skill that most of us are not able to do.

By getting everybody on the same page and aligning interests at the start, it can create a smooth and productive project and relationship moving forward.

Here are 3 Tips that Can Help:

Tip #1-Create a Scope of Work with a Deadline

This one may seem obvious to some, but it was definitely something I missed when I first got started.

I simply had the contractor provide his scope of work with no deadline, whatsoever.

This led to project delays and frustration.

As everybody knows, “A goal without a deadline is just a dream.”

You should both agree to when the project is to be completed in writing. Even better, include incremental steps for when specific things should be done.

Tip #2-Check in on the rehab regularly

If you don’t check in on the project at least weekly, then you have no way of knowing if progress is being made.

What has worked well for me is checking in on the project once a week. I usually walk the property every Saturday morning with the contractor to see what work has been completed that week.

Some people like to check daily or a few times a week. So whatever works best for you, but I recommend at least once weekly.

If the project is out of state, then have the contractor call you via FaceTime.

Once the property is reviewed, then I pay them for the work completed.

This keeps the project moving forward and keeps them coming back to earn the paycheck.

Tip #3-Offer a Bonus/Incentive if the Project is Finished Ahead of Schedule

I have yet to implement this tip and I know some people may not agree with this.

However, money motivates people.

And if you are willing to pay a predetermined bonus to your contractor, who’s project do they think they are going to prioritize?

Good contractors are in high demand, so offering this incentive may do 2 things:

-Get them to work with you in the first place

-Have them put your project at the top of their list

Obviously, you want to make sure the quality of work is still up to your standards and they are not taking shortcuts to get the project done sooner.

I hope you found these 3 tips helpful and can implement at least one of them on your next rehab project.

Learn from my mistakes, so you don’t have to make them like I did.

Well, that’s all I have for today.

If you have any questions about working with contractors, feel free to email them to me by responding to this email.

Have a great weekend everybody!

For Active Investors

If you want to learn how to purchase your first or next investment property in the next 3-6 months, but don’t know what steps to take, please schedule a call with me using the link below to see if my coaching program can help.

The main strategy I teach is the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy.

I’ll help you avoid beginner mistakes and shorten the learning curve from years to months.

For Everybody

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Disclaimer: My newsletter should be viewed as educational content and should not be construed as actionable advice without consulting the proper professionals.