Newbie in need of step-by-step Rehab Management Tips

[Garron Gibbs]

Hey BP Community!

I'm just starting out and I'm trying to learn as much as possible before getting my hands dirty. Specifically, I would really like some guidance on do's and don'ts of managing contractors and the entire rehab process.  Do I have to do a walkthrough with every contractor I want a bid from? Or do people just send photos/videos to contractors and try their best to describe what's needed? And any other advice would be greatly appreciated. Thanks!

[Robert Arroyo]

@Garron Gibbs

It’s always good to go into the rehab with a clear image of what NEEDS to be done in order for the house to sell/rent such as: Roof, Dry rot issues, mold and so on. Then address the aesthetics and while it’s always good to have a budget in mind it’s also important to look for little pieces of the rehab that can bring great value to the homes appraisal even if you have to go a little over budget in some areas. I always go with getting at least 3 quotes, if someone doesn’t return your calls promptly expect their work ethic to reflect their drive. It’s normal to give a 10% upfront cost for your GC to get materials and pay their workers (never pay in full.) Also going into this process with an idea of what you need from your contractors will help you out a lot. I did some of the work myself and sub contracted out quiet a bit on my first home remodel. I’m about 80% complete with my first flip and I’ll give you an idea of what the proper steps should be in the rehab process (some of these will vary depending on need)

Read David Greenes book on long distance real estate investing he breaks everything down in great fashion! Even if you aren’t investing long distance he helps you identify great members for your “team” to be successful

1. Windows

2. Drywall (while everything is open now is a good time to do any plumbing/electrical fixes)

3. Tape/Mud

4. Texture

5. Paint

6. Bathroom remodel / subfloor if dry rot or termites are present

7. Kitchen remodel / cabinets

8. Floors are always last!!!

Trust me I did thing in a complete different order but it’s a learning process. Hopefully this helps reduce your learning curve happy investing!!!