Letâ€™s face it folks, flipping a house is not as easy as everyone makes it out to be. On certain days it seems as if there is a new challenge to overcome just about everywhere I look.
Managing contractors is one aspect of house flipping that can require a ton of time and energy. It is critically important to your bottom line to make sure that your contractors get the renovation completed within the time frame you set, and within the budget you develop.
I have a great acquisition manager named Bill, who for the past seven months has been locating houses for me to flip. However, Bill has recently been managing renovations as well. This is great and all, but managing renovations really takes away from the time Bill is able to devote to locating new properties to flip.
What Bill and I decided to do is develop a program so that Bill can get back to what he does best - finding houses to flip - and leave managing the rehab to a general contractor.
Reclaim your Time with Our General Contractor Program
If you take a look at the Hanover property, you will see firsthand just how much renovation work has gone into this particular property. There are many moving pieces, from landscaping to plumbing and everything in between.
Keep in mind that if one contractor misses a deadline it pushes everyone back. Add in a tight renovation budget and a strict renovation time limit of 35 days, and we have ourselves a rehab that requires a ton of time and energy to manage.
Even little things, like the 45 minute one way drive to the house from my office, can really add up. If you are working a full time job or have a family you want to spend any time with, you better have a system in place that removes you the investor from the hands on renovation equation.
Here is what our general contractor program is going to do for us:
- Provide Bill and I with more time that we can use to find new deals
- Allow us to move through rehabs quicker so that we can reach our goal of flipping 4 houses per month
- Leverage our time and run our business extra efficiently
We want to share the details of our general contractor program with you so that you can use it to leverage your time and improve your renovation process.
Check out program right now by watching the new House Flipping School membersâ€™ roundtable discussion below:
Hanover Property Open House on October 20
In last weekâ€™s post I updated you on how renovations are progressing at our house flip in Hanover, MA. As of today there is still work left to be done on this house and Iâ€™ll admit that I am starting to feel slightly nervous.
The reason I am feeling a bit nervous is because we are having an official open house at this property on October 20. Here is what we have left do between now and then:
- Install flooring by 10/16
- Finish electrical by 10/15
- Finish plumbing by 10/15
- Interior finishes (closets, shelves, mirrors etc.) by 10/16
- Final walkthrough late in the day on 10/16
- Cleaning morning of 10/17
- Staging on 10/18
Managing all these moving pieces is a lot like conducting an orchestra. Everyone has to be in a particular place, at a specific time.
This coming week we will have one contractor in the kitchen, another in the bathroom and some others in the basement. The only reason itâ€™s going to work is because we have orchestrated it in this fashion.
Otherwise this renovation could easily turn into a big cluster, with contractors getting in each others' way etc., which would be a big time mess.
Sound slightly intimidating? Well it sure can be if you dive in head first without any idea of what you are doing.
Simplify the Process
Maybe you have felt overwhelmed in the midst of a past rehab. Perhaps you have a rehab going on right now that is making you anxious.
Either way the below whiteboard video should help you relax, because we take you through exactly how we are orchestrating this complicated rehab in Hanover.
At first glance a house flip rehab may seem overwhelmingly complex, but with the right system in place it's actually amazingly simple.
Also, keep in mind that because we have a general contractor program in place, the only work I as the investor will personally be doing here is the final walk through. Everything else is off my shoulders and taken care of by the general contractor program.
As you can see from the below screen capture, both Bill and I manage to have some fun in the midst of all the chaos!
The Importance of Accountability
In my opinion the most important ingredient to a smooth rehab is accountability. Holding people accountable is not always easy. I have come to understand that holding people accountable for their work, budget and deadlines is a bit of an art.
For example, you cannot simply tell a contractor to please get their work done by a certain date. That approach just wonâ€™t work, and the result is often a delay of a day or two, which pushes everything back. This must be avoided at all costs.
Contractors need to get their work done on time, nearly every time. I canâ€™t stress the importance of this enough.
So how can you hold your contractors happily accountable?
Well, we have a system for this too. If you are having difficult holding your contractors accountable, then I want you to give this simple system a try, which Bill and I explain below.
And when you do try our system, be sure to let us know how itâ€™s working for you by posting in our membersâ€™ forum.
Developing systems is critically important to my house flipping business. Without systems there would be no chance of reaching my goal of flipping 4 houses per month.
If you are new to this business then Iâ€™d recommend you at least start to think about systems right now. If you want to grow your house flipping business, then systems can help you do that.
As always if you have questions, feel free to connect with me in the forum. I am really enjoying answering your questions and helping everyone accomplish their house flipping goals.
Take care and see you at the top!