Collecting Keys - Real Estate Investing Podcast EP 46 - Acing Your Real Estate Project: Managing Contractors and Materials
What did you think of todays show??
You’ve got money to invest in a property, you’ve found the perfect one, and now you’re ready to get started on your renovation project. All that’s left is to find a contractor — but that’s easier said than done. It can be tricky to find the right people for the job and keep them on track, but with a little bit of organization, it can be done.
In this episode of Collecting Keys Podcast, we will discuss how to find the right contractors and build a relationship with them to ensure a successful project.
Here are some power takeaways from today’s conversation:
- Be patient with deals
- Create opportunities
- Prepare exit strategies for projects
- Secure the necessary legal documents
- Build trust and rapport with contractors
- Outline the materials needed
- Monitor their progress
Episode Highlights:
[1:07] The Oil House Fiasco
After a leak in the oil furnace in the oil house they were renovating, they almost faced a lawsuit. Don’t let your insurance company dispatch a remediation company. Either use your own crew or dispatch a reputable company within your market.
[6:47] How to Thrive in the Current Market
Most deals aren’t easy, but you just need to be patient. Learn to find and create opportunities. Prepare different exit plans and legal documents. It’s also crucial to be adaptable to the market shifts and not be stuck in one box.
[16:39] Finding Contractors
When you cannot rely on the market, you will need to learn how to find contractors and manage projects if you’ll be doing rehabs. Here are some pointers:
- Get someone with:
- a general contractor background
- a crew that they run
- Consider the target time on the project.
- Determine what tasks you can assign to the contractor.
- Build rapport and trust with the contractor before making them a partner in the deal.
- Interview the contractor about their projects.
- Ask them:
- What’s your scheduling?
- How do you do this certain task?
- What elements of the project are you going to sub out?
Keeping these in mind will help you build a relationship with the contractor. It’ll also help you find out the estimated cost.
[26:48] Managing Materials and Contractors
Go room by room on the materials and things they want to do. From there, you can outline the materials and how to procure them. Pay them based on phases or weekly. Leverage technology to check in on the contractor’s progress.
Notable quotes from the Episode:
[7:44] “... if you provide high-class properties in growing areas where people are going to need that gap housing, you could probably get some primo rents from some really good people.”
[29:36] “You shouldn’t expect a contractor to trust you right off the bat if its your first time using them (and you need tor respect that).”
[33:15] “Use technology to your advantage.”
Resources Mentioned: