Today, Brian and John take us through their step-by-step process in rehab management. Part 2 of the Flipping Process series is about rehabbinging properties for both renting and flipping. Listen as our hosts share details of their flipping experience and what they’ve learned in the process. Get their tips on finding and dealing with contractors.
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Covered Topics:
- Property Rehab Management
- Flipping Experience
- Finding the Right Contractors
- Creating “The Scope of Work”
Show Notes:
00:39 – Brian and John’s latest work
04:43 – Today’s Episode: Flipping Process Part 2 of 3
- Last week was about the acquisitions & sales portion
- This week: rehab management
05:58 – Brian and John has done 100 Flips
- Evaluation prior to process
- Brian’s work after a purchase
07:23 – Brian’s 8 years of flipping experience
- Unexpected things coming up
- Going over budget
- Put a contingency fund into your budget
- Finding honest contractors
- Look for people who can do the job quickly, with high quality, and with a good price
12:36 – Credit account at Lowes for materials needed by contractors
- John shares about the trouble with dishonest contractors
- Have a few trusted contractors
16:08 – Why you need to take it slow when starting with new contractors
17:52 – Diligence is key to ensuring you’re not getting ripped off
18:08 – John shares an ancillary story on a contractor they have
19:39 – Creating “The Scope of Work”
- Giving the sku of the products to the contractor
- Sku's save time on both ends
- Hidden things MAY come up while working on a property
- Demolition/Getting rid of things
- Electrician & plumber’s work
- Make sure to check out if the contract is hitting milestones
- Go through a punch list
Topic Takeaways
- Minimize stress as much as you can when doing rehab management over a property.
- Finding the right contractor who is honest and has integrity is paramount.
- Be diligent in checking in with your contractor’s work — some may just rip you off.
Tweetable Quotes
“When you get into a property, there’s always things that come up.” (Tweet This!)
“Finding good contractors that are honest and have integrity is almost more important than their skill level.” (Tweet This!)
“We require any contractors that do work for us that they need to have contractors’ insurance that names us as an insured party.” (Tweet This!)
