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How to Flip Real Estate Without Killing Your Contractor

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Sometimes, I feel like killing the contractor.

I love the guy, but he just infuriates me. Sometimes he just does something absolutely crazy. And although he has drawbacks (as I do), interestingly, he’s one of the best I’ve ever worked with … and I’ve worked with a lot of people. rice field.

If you’ve ever been a real estate investing kid, have you ever felt this way from time to time?

Indeed, there are several ways to reverse real estate. Whether to contract for wholesale, purchase, rehab-free reversal, or purchase, modification, and subsequent reversal. play.. I do the last kind.

And if you do the last one like me, there are multiple ways to do the rehab part of the flip. You can do it all yourself (uh), generally contract it yourself and do some work (better), hire a project manager to manage it all (much more) Good), or just hire a contractor to get everyone else to do all the work while you are looking for more deals (best).

I do the last one, but I did all four at different stages of Houseflip’s career.

One of the best ways to turn over real estate is to work with a contractor. But if you do, you’ll want to strangle them at least a dozen times in every real estate flip …

So How do you manage your contractor if you don’t want to kill it?

How to Turn Real Estate – No Violence Needed

Unfortunately, contractors have a general reputation for being difficult to deal with. And this reputation is pretty accurate.

My contractor is some of the more interesting characters I know – and I know some real characters. They can be unstable, irrational, annoying and frustrating. They are all very good at their work, but some are really struggling to get orders from their bosses.

But some of them are very creative and thoughtful and add a dimension I must have to the flipping team in my home.

But at the same time, they make me crazy.

Still, there are some things you can do to best deal with this. And understanding how to best deal with this awkward bunch can take a big step towards successful long-term house flipping.

And no need for unnecessary killings …

A four-step formula you need to know for success and profit with your contractor

Therefore, before entering into this sometimes volatile partnership, there are some things you can do to make sure that your relationship with the contractor is beneficial to both.

The following four-step formula should be of great help in your home-turning career.

1. Set a clear timeline

Whether you’re learning how to flip a property first or have been flipping a house for decades, it’s overemphasizing the importance of setting a clear timeline for a series of flipping events. is not. Create a clear timeline to complete. Limit.

In today’s market, my contractors are very busy. No matter how busy the contractor is, a definitive timeline to complete is essential. They are doing a lot and need a structure. The timeline helps to create this structure.

If you don’t hold the contractor accountable, the project of flipping your home will be dragged in more and more.

If you fail to reach your established goals, or if certain aspects of your home flip last for a day longer than expected, try not to feel stressed. The odds are that you have a delay, miss one or two deadlines and push something back. This is 100% expected and is fine as long as it’s not standard.

However, if you don’t set a date, the houseflip will be longer than expected because there is nothing to benchmark. You will hear various excuses, so please meet the deadline as much as possible.

2. Don’t scare you to those who shoot

I don’t really enjoy dismissing contractors … but sometimes it is absolutely necessary to dismiss them.

If the contractor makes a mistake, misses the deadline, and delays the tour project due to poor finish, address your concerns first. If it continues to occur, warn again. If that happens last, fire them.

Your situation depends on this, but most of the time I have a policy of “three strikes and you are out”. After multiple warnings, it’s time to dismiss the contractor if the contractor is still missing the deadline, doing some crude work, and so on. Find another quickly.

If you don’t deal with it and take action, it’s easy: a career flipping your home will never take off. And it’s not your contractor’s fault … it’s your fault for not taking corrective action.

Look at your contractor as an extension of yourself, as your team of contractors can highlight a career that flips through your home. And if some of that team isn’t working properly, you need to take action.

Make sure that dismissing someone doesn’t affect you at an emotional level. If you’re doing it right, you’ll go through many members of the team flipping through your home to pursue success. This process is often underway. But if you stick to it, you’ll end up forming a successful, ultra-efficient house flipping team.

3. Pay the contractor on time

You need to pay a good contractor on time to keep them with you in the long run.

Remember that your contractor has to pay his person on time. Paying the GC in a timely manner makes the entire house flipping process much smoother. He is paid and the submarine is paid – everyone is happy.

Pay on time, not immediately. Do not prepay them all.

It’s a good system if you can schedule payments when the third is prepaid, the third is intermediate, and the third is completed. Resolve this with your contractor in advance so that everyone is on the same page.

Not paying the contractor on time is a surefire way to ruin a relationship. And that’s your fault. Whatever you do, don’t do it.

Most of my general contractors pay all subs on Friday afternoon. That is, pay the contractor by Thursday or Friday morning at the latest.

No matter how you decide to do it, try to maintain fairness and timeliness to keep everyone happy and motivated.

4. Handle them correctly

Approaching people with respect and dignity is a good move for any business you do. Working with a contractor certainly makes no difference.

Sure, most contractors are a little sullen, but that’s not a problem. We want everyone, including contractors, to be treated properly with some respect.

Surprise your team with a few beers after work on Friday or a random coffee tray on Tuesday morning. Show them that you are grateful for what they are doing. The small things that often have the most dramatic impact on morale.

Show them that you are grateful to them, that the work they are doing is worth it, and that they are also worth it. Everyone likes to feel grateful and respected. And let me rust, small things make a big difference.

If you stick to the tips above, you’ll be well on your way to a profitable real estate reversal over the next few years, while minimizing stress levels and building strong relationships with your contractors.

If you read this far, Please leave a comment below! Ever wanted to strangle, kill, or hurt a contractor? Tell us about it below!

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