You found it Perfect house flip…
It’s been about a week since the store closed …
you In the game… You are excited, full of expectations, Maybe a little afraid…
You have taken the plunge and are now officially a real estate investor …
It feels pretty good …
But you think: oh man, Who actually manages the refurbishment?
You haven’t thought so far yet … but don’t worry, it’s not as challenging as everything might seem.
When everything is said and done, you really have three options.
Option # 1: You
Let’s say you weren’t working and had more time. In that case, You may consider doing General contractor (GC) Part.
But if you’re doing a full-time job and trying to manage a couple of rehab, don’t worry, you’ll end up with memory weakness.
If you’re doing a full-time job right now, have one rehab, it’s a mile away from you, it’s not that widespread, and you need plumbing, electrical work, and a little finishing work. , I think you can probably manage it.
In that case, there is no reason to involve the GC. In addition, running a GC can give you a great experience.
Again, only you can determine that. In most cases it’s better to let someone else manage everything.
Remember to manage the GC and get involved in a complex way, even if you don’t have a general contract.
Moreover, if you don’t fully understand how the process works, you’ll lose control of the GC and you won’t even know if he’s doing a good job.
So, in the end, you are in control, whether you hire a GC or a subcontractor.
Option # 2: Project Manager
In some cases, I used something called a project manager. This is a little different from GC. How it works is pretty simple.
Let’s say you have a carpenter who works as a real man and he does all the carpentry work such as window installation, kitchen installation, door replacement, skirting board installation, etc. And let’s say it’s a 4-week or 6-week project.
In such cases, I talked to some of the carpenters and said, “Hey, listen, are you interested in managing the project?”
First, I want to know what his qualifications are and if he knows how to make a general contract. Maybe he has done a big project in the past, so his experience will allow him to manage this project effectively.
But he was hired to do a carpenter’s job and other jobs, so I said. You are there anyway and you will be there for the next 4-6 weeks. Are you ready to manage plumbers, electricians, seat lockers, insulation people, etc.? You will pay an additional fee in addition to the amount you are currently paying. “
In most cases, all you have to do is ask.
In this case, we put together a small one that he got a great extra $ 2,000 for him. Of course, some may think it’s a little money. Some people may think it’s a lot of money.
It will really depend on the person you are hiring and whether he feels it is worth his time. In that particular case, $ 2,000 was what we agreed to, and he was very happy with it. He was getting an extra $ 400 a week. He was there anyway, and he had no problem getting extra money to do a little control and spent a little more time making that money.
And also put the kicker. He states that if he meets the time frame and meets a specific budget, he will discuss additional bonuses. He was very excited because he finally got it too.
Project managers can be a great solution, especially for small projects. It’s not just about thinking a little out of the box and thinking from a general contractor’s point of view to manage the project.
Option # 3: GC
And of course, there are authentic ones General contractor root.
This is the man who manages all the submarines as a percentage of the total cost.
He has a list of subcontractors and will price the entire job with you having one contact.
In this case, you don’t have to deal with the submarine. You just call your contractor, fix whatever you think is wrong, and don’t even deal with submarines at all.
Having one contractor is great if you can always get the right pricing in your model. But the best way is to talk to the GC, explain what you’re doing and how you’re doing it, and see if you’re willing to work with investors.
After all, everyone has to win. You want a mutually beneficial situation for yourself. You want a mutually beneficial situation for your contractor. Subcontractors need a mutually beneficial situation.
And you’ll only find this by talking to the different people out there, seeing what their abilities are to work with you in your model, and getting their reaction. .. Some are interested, others are not.
Choose some and try them out. And keep an eye out for other potential GCs.
But before you hire it, make sure you ask them These important questions are here.
Only you can know if you have the skills to become a GC in Houseflip. However, in many cases, a general contractor license may be required to obtain a permit and keep everything legal. It might be a good idea to hire a GC just for that reason.
Currently I’m always doing GC, but recently one of the crew has hired a project manager to start managing individual projects. This is a detour to use the project manager.
Whichever way you go, all will return to “Do the numbers make sense?”
If you can hire a GC and still protect it 70% ruleThen go for it.
If your margins are a bit narrow, we recommend that you consider the other options above. At the end of the day, it’s your call.
If you get this far, leave a comment below! What do you want to do? Do you manage your own flips? Are you using GC? Project manager? Leave a comment and share your thoughts!