What are some basic construction pieces a flipper should know!?!?

[Account Closed]

Hi BP,

Looking to gain some knowledge of rehab and construction. I ordered J Scott's book on Estimating Rehab and hope to get some good nuggets there. 

But I wanted to get some advice from current flippers, especially those in expensive areas such as Jersey and NY. Terms like Framing, Trim, Wiring etc are foreign to me. 

When GC does a bid, does he include Materials or should I be in charge of buying that on a request basis. Heard that some of them can rip you off on that end. Like buy more than they actually need and keep the rest! 

What are some general rehab and construction pieces you feel a good flipper should know? 

Where are the best places to find material?(BIG BOX Stores or Specific Department Stores) 

Do you know already what materials you plan on using and how much of it you will use even before you close on the property? (As that can depend on the markets you're operating in)

Also can an Agent help with Design of Home to make appealing to prospective buyer or Should I seek an Architect or Interior Designer?

Thank You for answering this bombardment of questions!

[Mike Garrett]

Pierre, The construction process is not as daunting as it looks at first glance, but some project management education will accelerate your success. The ideal process looks like this:

Find property and determine value adds, discuss with building department whether permits are required and if professional stamps are required to obtain permits, develop schedule for project, hire design team, manage design process, put drawings out to bid for contractors, hire contractor, manage construction process, receive certificate of occupancy.

I have yet to have a project follow this ideal process, but G.C.'s include all materials and labor, overhead and profit, allowances, as well as sales tax, insurance, and the owners part of any performance bonds, and some other costs. Setting up the bid forms so that you can see all these numbers as well as a breakout on each material and sub is important. 

Good project management is important to developing a system to keep the project on track and with in budget! i.m. me if you need more info!