Fort Worth, TX · Member since 2015 · 1 post · 1 vote
Hello, BP! I started following BP and listening to the podcast a few years ago and have really been a lurker this whole time. I just finally took the REI leap when we purchased our first rental property from a family friend. My family and I live in Fort Worth, but our 1st (of hopefully many) investment property is in South Arlington.
Short term, we have some work to do in prepping this first property for renting, so I'm going to have to build a local network quickly to find a contractor, handyman, property manager, etc.
Long term, we are planning to utilize the BRRRR method to build a portfolio of single family rentals throughout DFW to provide additional cash flow, so it's about time to start looking for that 2nd property! I am looking forward to maximizing all that BP has to offer, while building a strong network throughout the Metroplex.
Rental Property Investor · North Richland Hills, TX · Member since 2016 · 533 posts · 221 votes
6y
I would advise to have 3 bids for the work (if they are bidding the whole project)...or if you are getting subs to bid (ie a painter, roofer, carpenter, electritcian, plumber, handyman etc) try to get 2-4 bids from each of those trades. You will learn from each of them.
If you can make a list of the things you want them to repair/remodel ahead of getting the bids, that might help your bids be more 'apples to apples'. Ask them to break down the various parts of the bid wherever possible and also split the Labor v Materials. Ask when they can start and HOW LONG they expect it to take them.
Once you get the bids, and think you have a preference who you want to use, let them know you expect them to sign your contract. Most guys don't have their own, but if they do, you'll have to come to an agreement - and preferably use your contract. If there's something they want to make sure is also in the contract, you can negotiate putting additional language in to cover their concerns. If you don't use a contract you are more vulnerable to an undesirable result.
You can find some contracts online, but beware they are thorough and valid in your state. Nolo or other sites that seem reputable might be one place to start. The contract will discuss payment terms in addition to 'scope of work' (be as detailed as possible - you CAN insert their bid sheet if it is detailed enough, or you can add a page with more details) and timeline for completion of 'milestones' which can be used for disbursement of funds. This is a time consuming process but, it can be very worth the effort if it saves horrible headaches down the road.
Try to find help with the contract and bid process if you can - it might help you do it with fewer mistakes!
Hope this helps a bit - and Congrats on 'LANDING' your first oppty -but, after getting through it in one piece, another book will be ready to be written on all the lessons learned once completed!
Rental Property Investor · North Richland Hills, TX · Member since 2016 · 533 posts · 221 votes
6y
I would advise to have 3 bids for the work (if they are bidding the whole project)...or if you are getting subs to bid (ie a painter, roofer, carpenter, electritcian, plumber, handyman etc) try to get 2-4 bids from each of those trades. You will learn from each of them.
If you can make a list of the things you want them to repair/remodel ahead of getting the bids, that might help your bids be more 'apples to apples'. Ask them to break down the various parts of the bid wherever possible and also split the Labor v Materials. Ask when they can start and HOW LONG they expect it to take them.
Once you get the bids, and think you have a preference who you want to use, let them know you expect them to sign your contract. Most guys don't have their own, but if they do, you'll have to come to an agreement - and preferably use your contract. If there's something they want to make sure is also in the contract, you can negotiate putting additional language in to cover their concerns. If you don't use a contract you are more vulnerable to an undesirable result.
You can find some contracts online, but beware they are thorough and valid in your state. Nolo or other sites that seem reputable might be one place to start. The contract will discuss payment terms in addition to 'scope of work' (be as detailed as possible - you CAN insert their bid sheet if it is detailed enough, or you can add a page with more details) and timeline for completion of 'milestones' which can be used for disbursement of funds. This is a time consuming process but, it can be very worth the effort if it saves horrible headaches down the road.
Try to find help with the contract and bid process if you can - it might help you do it with fewer mistakes!
Hope this helps a bit - and Congrats on 'LANDING' your first oppty -but, after getting through it in one piece, another book will be ready to be written on all the lessons learned once completed!