Rehab after Hurricane Harvey

[Karen Cook]

I am busier now than when I have done previous rehab to hold. I use to hire in subs and oversee, but now I need a contractor and I need to not micro manage. That said, I do have a simple scope of work, materials list, chosen finishes and a timeline. 

The house has been gutted to the studs so everything needs replacing. it’s a 2600sf house that is on the lower end of the spectrum as far as neighborhood and around 330k arv. 

My question is how do most of you work with your contractors?  Do you settle on a price, give him draws, let them pick up materials? we have always delivered the first round of materials, then a second round at the midpoint (which should be everything they need except for last minute forgotten or unexpected items) but I won’t be there to “guard” the materials. 

So if you have some recommendations, I would really appreciate the input!!  

Karen Cook, realtor and investor in Houston

[Collin Garbarino]

I've got a contractor working on a property right now. I went over what I needed him to do, and I gave him a third up front. His guys are getting all the materials. I'll pay him another third at the mid-way point of the job, and then the final third when he's done.

I wouldn't deliver materials if I'm using a contractor. If I was acting as my own contractor and finding various subs then I'd take a more active role.