First flip long distance - thoughts?

Question

My question: Should I wait until I'm home in a few months to seal a deal, or start looking now to hit the ground running and manage a GC long distance?

Details: Im in Ft Stewart GA while I recover from surgery. I go home to Tampa on weekends, where I have already created my LLC and begun looking at properties for a fix and flip. I have the financing set, along with the key people needed, except for a GC which I am currently searching for based on recommendations. Once I have a vetted GC, I would like to begin making offers and get a property under contract to start a rehab that needs average cosmetic work (being my first flip). I have experience managing projects, but would only be able to visit the site on weekends. I would possibly pay friends and my realtor to stop buy the work site to oversee throughout the week when possible. I know this can be risky, especially the first time working with a new crew, and also not being able to spot check the site itself until the weekend. However I wonder if assistance from others might help mitigate this so that I dont have to wait 3 months to begin if I'm ready now.

Thoughts?

Evan Polaski · Answer

@Ryan Steiner, for your first flip and really all flips, I would definitely wait until you can be at the project on a near daily basis.  Even highly recommended GCs like to make bad decisions when left to their own devices.

I had used the same GC for 8 years, but had to fire him from a project about a year ago, because he decided to stretch himself too thin, or mismanaged his money, or something.  Either way, after 8 years of working together, he still needed oversight on each project, and still turned bad on me.

Even for a simple project, and with everything outlined, things will come up or be missed that need to be caught quickly.

Bryce Wade · Answer

Just ask your friendly agent to check it out every once and a while.

Ryan Steiner · Answer

@Bryce Wade yeah but that guy is shady ;)

Ryan Steiner · Answer

@Lynnette E. Yeah I think I can tailor my lunches to be early, on time or late. Makes sense that maybe I can start/still work early just to pop in, or pay a friend/agent to do a random check for me.

Lynnette E. · Answer

I am retired now so I can show up at random times.  But others do it before work, after work and during lunch (early and late lunches too) and maybe around some half days at work.  Some work schedules are flexible and let one work say 9 hour days 7 days in a pay period then a few half days to get to the 80 hours.  If you can do that and have the half days sometime with work in the afternoon and sometimes in the morning, you could 'randomly' stop by a construction site.  Just do not 'tell' your work schedule to the construction workers.

Ryan Steiner · Answer

@Lynnette E. That's really good advice. I think. learn communication on who is allowed to approve what/when is crucial. At this point I think I'll just do better research and wait until I'm home for good.

I read in J. Scotts book that ideally you would want to show up at random times to ensure things are going as they say, but Idk how that is expected if people aren't doing this full time. I'd have about 2 months of leave when I get home so I could do that but afterwards I might have to hire some help.

Lynnette E. · Answer

I have not hired assistanct, but have had horrid situations where one contractor, say a carpenter, has tried to take a 'lead' position and direct others such as the plumber.  Without ever consulting me, in one instant he had the plumber put in an 'emergency' water line in the yard, disconnected the water heater line, a bunch of other things that ended up costing my $5k to pay for services I did not want and to put back together the mess that was made.  Plumber thought that since the carpenter kept telling him to do things he was maybe my husband or boyfriend and that he had the authority to agree to me paying for these extra things.

Same thing happened with the HVAC guy.  He put in jumpers instead of fixing the problem, so I then had to pay someone else, that I COULD CONTROL, to come and fix the system legally...so it could pass inspection and not start a fire.

Now I am very firm that I am the one paying for the work and if I do not agree to the work I do not pay and no one speaks for me.  No one had approval authority but me.

Its harder for me as some folks here do not want to take direction from a girl.

I would think that the person just looking and reporting will need to be well versed in construction to know if all is well, maybe someone like a home inspector who does the inspections when you first buy a house.  I would think it would be 15-20 an hour in 2 hours periods.

Ryan Steiner · Answer

Have you had experience hiring assistants for these things? If so, what kind of rates have you seen? I'd be interested if it meant I could get a project going sooner, but only if I felt comfortable with the person/price.

Lynnette E. · Answer

You could hire assistants, but you will need to make sure they work for you and do not become too friendly with the contractors.  That will be challenging.  And you will need to make is clear that they have no right to modify a contract you have with a contractor.   So if a contractor says 'xxx is out of stock, so we are going to use yyy'  your assistant does not say 'ok'. but 'I will call Ryan and see if he approves that change'  Then you call the contractor with a yes or no.

Some contractors will look for the weakest link and exploit it.

Ryan Steiner · Answer

@Lynnette E. That's good though. I'm sure your understanding is appreciated by him and will strengthen the work relationship. Plus if it's not a rush then no harm in waiting for the right person to return.

I still wonder if it's something I can manage by hiring assistants to check in on it and take pics/videos when I'm not there. My realtor has done flips and my friend knows requirements.

First flip long distance - thoughts?

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