How to start work on day of Settlement

Question

What do you flippers do from the time that you get a property under contract to closing to get the rehab in order.  Putting together a checklist for this phase.  I would like to be able to get as much done as possible and even be able to start construction on the day of settlement.

Pre-Hab Work Phase

• Hire architect
• Hire structural engineer
• Apply for building permits
• Design Kitchen
• Choose tile, flooring, cabinets, door hardware, light fixtures, railings, front doors.
• Measure windows
• Get estimates from 3 GCs
• Get estimates from 1-2 ECs
• Get estimates from 1-2 Plumbers

I think I might be jumping the gun on getting Permits…don’t you have to own the building for that?  Please share any other items or if you think some of these don’t belong…or can’t happen until ownership.

Thanks!

Will Barnard · Answer

I do all of that and more expect for some of the bids a those don’t take long to get and I pretty much know what they are anyways since I do a lot of these.

The risk with this is if somehow seller can’t deliver clear Title, then you are out these expenditures but that is rare.

Not sure about your area, but here in Los Angeles, I can have all the plans completed and submit to B&S (building and safety) before being on Title but to actually get the project to RTI, I do need to show I am on Title or get notarized approval from seller to submit to City.

I typically make my offers with closing dates of 10 Days but I love it when sellers need 30 or 60 Days to close as that saves me holding costs while I do all the plans and City submittal/clearances.