How to Structure A Renovation

Question

Does anyone have a good book or reference they use on how to handle a renovation? Would you recommend multiple contractors for different jobs? What are the correct order of operations? Do's/don'ts? Any books or other sources of information people would recommend?

Bob Stevens · Answer

PLEASE get to your local RE meeting, reading a book will provide maybe 10% of what you need to know, books are not reality. You will be amazed how simple it is. The experienced person you walk through with will raddle off numbers like its nothing. It typically takes us 15- 20 minutes max to walk a property.

BTW here are 7 tips from my site, Simple but many do not do them

7  must knows before making an offer.

First thing to do when you walk into a property that has been vacant.

Turn on all faucets, flush all toilets and allow the water to run while you are walking the property. This will let you know if there are any plumbing leaks or any clogs in the sewer lines.

2nd look at the foundation very closely, look for any stress cracks and see if any moisture coming in.

3rd check out the HVAC systems. Turn the thermostat to 85 degrees make sure working properly. Do the same with the hot water tank.

4th look at all the cosmetic, painting, flooring, carpet,

5th look at all the outlets see if they need to be grounded, see if they are two prong or three prong. Check all GFI's. Check all lights, check electrical box. See if needs to be upgraded.

6TH Check all windows.

7th Roof look for lifting or sagging shingles ALL the best,

Jose Jacob · Answer

A book will give you some ideas but boots on the ground and doing it practically will teach you a lot. One of the hardest strategies in REI is fix&Flip. There are so many components in it and you need to master each and everything to make money. My suggestion is to work with an investor who does flips in your market area  and learn, much better than reading a book (not suggesting not to read).

Good Luck

Christian Ehlers · Answer

You can listen to Bigger Pockets Book "The Book on Flipping Houses" by J scott for some help. It also depends on your experience in construction, where you are getting the money to fund the renovation, etc.

I'm guessing you might be newer so if you don't have a ton of experience in construction I'd recommend getting quotes from several General Contractors who's job it would be to manage the renovation in the right order, schedule the Sub Contractors (the specific trades people like electrical, plumbers, drywallers, flooring etc) and even manage getting permits with the city.

You could also partner with an experienced flipper in your market and learn a lot from them in the process.

Carlos Ptriawan · Answer

you need to have contractor you can trust and work in your favour, second they must have network of trusted subcon. 80% of job only requires one general guy that can do everything, you dont need plumber for basic plumbing issue, but if you need to add water line then you need a specialist, use one subcon as long as possible, don't do project very fast, do it slowly, that would save money.

i learnt from no book

Alan F. · Answer

Definitely what Kyle & Scott said, good book to start with.

The scope of work is specific to each job. Speed is important but not at the expense of quality or safety.

Volunteer on a Habitat for Humanity, or be a helper to a Contractor.

The best experience is being there.

Scott Mac · Answer

Start out real small.

A light kitchen redo versus a complete tear out.

Flooring, paints and fixtures versus down to the studs demo.

Then don't go real big Until you really know what you're doing.

There are a lot of Tigers that can jump up and bite you along the way.

And you need to know about lean releases and how they work in your local area.

And you need to know about Workman's comp

Plus a lot of other things- way too many to try and teach someone online.

Good luck!

Kyle Ebersole · Answer

The book on flipping houses is a great place to start. They will walk you through a flip and give you a template of schedules and which contractors follow which. If you have never done a renovation before, definitely use a GC the first time. Once you have a few under you belt than you can experiment with using multiple contractors, but you will lose money experimenting with multiple contractors your first time.

Marcos Bicalho · Answer

I would Suggest RE Meetups, talk to investors and contractors, have A, B,&C proposals, and ask for Reference, insurance, and License if needed. Also, try someone local that already did a flip for help.

Peter Mckernan · Answer

I would suggest "The Book on Flipping Houses" as well. Also, yes, you should have your A, B, and C team. For example, you need to have a contractor that knows how to work with the city is fully licensed, and knows permitting, etc. (that is A team). Then you have a contractor that does stuff nice but does not really know permitting, etc. but he does know how to make stuff look good and he is licensed (B team). The last one is an unlicensed guy who can do what a licensed guy can do and as nice, but his prices are cheaper (C team).

How to Structure A Renovation

Most Popular Reply