SCOPE OF WORK NEEDED IF I'M DOING THE WORK

[Anna Catron]

I'm buying a small duplex that needs 20k work, not including labor. I'll be doing the work. Do I do a SOW, just to learn how or do I just track the expenses and hours of labor?  

When I say, "I", I'm referring to my spouse.  The duplex is in another town, so I'll only be there on weekends.  He's not a number cruncher, so he'll be irritated when I ask every day how many dollars and hours he spent on which projects.  

Thanks so much!

[Will Fraser]

Hi @Anna Catron! I would HIGHLY recommend creating a SOW and tracking time and expenses. If you are planning on doing this one BRRRR and then being done in the world of real estate . . . do it anyways. It will be a stellar learning experience. On the other hand, if you are going to be doing this again you will gain understanding so much faster and more efficiently if you'll go through the process outlined in The Book on Flipping Houses, which starts with a SOW.  

I did my first several flips without one, and looking back a few years later it was a whirlwind and a lot of fun, but I forsook the lessons that I could have been learning with a bit more intentionality during those projects.  As a result, when I went to a lender for the next several deals, I had to start from scratch building the credibility with them that my "completed deal packet" could have provided. 

So, I would recommend creating a SOW, executing it and tracking your time and expenses, reviewing that once you refinance and seeing 1. what went well 2. what went poorly? 3. what will be do differently next time?  --> this prep, do, review" process will allow you to learn and grow at hyperspeed.

Go out there and get it!