What do I do about needed repairs?

[Drew Dotson]

Getting repairs done right the first time and at the right price can mean the difference between making significant returns or, perhaps, none at all. That’s why successful real estate investment professionals have a team in place consisting of a general contractor, backup general contractor, designer, and a handful of subcontractors.

General contractors come in many shapes and sizes. Finding one you can trust and effectively manage is key to your success in real estate investing. Once found, they can be a great resource to you—accompanying you to properties, providing repair estimates, and informing you of potential issues that may surface once construction begins. It is a wise practice to ask general contractors for a list of recent references and to confirm they have the proper insurance/license needed for the job.

Getting multiple bids and creating a detailed budget and scope of work are great practices to implement. Often, investors will go way over budget because they didn’t take the time initially to create a thorough budget to strictly follow. Having a general contractor or experienced mentor to assist you in this is key to your success at achieving your expected return. Poor management of contractors is one of the most common reasons investors fail to make a profit.