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Updated over 4 years ago on . Most recent reply
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How Do You Manage a Rehab Project?
I used a few different companies to do rehab work. I have used them in the past, know their work. One is also a GC, the other not. Both do great work and are reliable. A Realtor told me I should use an independent GC or knowledgable Realtor to act as project mgr to assist them in developing a SOW and to manage their work. Not sure that's needed but I'm open. While I'm out of state, I feel reasonably confident that if I use a known entity with whom I have a history, that I can ask them to prepare a SOW with medium finishes (for example), granite countertop, and kitchen finishes to match that I don't need to actually be much involved in the finer details of fixtures and finishes but wait and see what their SOW will offer.
I then work with whoever gets the job to fine-tune the SOW into a draw schedule. I don't do percentage completion, but identify and attach specific tasks - carpeting, kitchen cabinets, roof, exterior paint, interior paint, etc. - to specific draws so that I can send out an independent draw inspector with the SOW and draw schedule to tell me, for example, 1) roof done? Look right?, 2) flooring done and looks as I intended?, etc. Based on that inspection that includes pics, I pay or have a discussion with the rehabber.
Are you more hands-on as an out of state investor, and to what extent, or how do you approach developing a SOW, project management, and draws for a flip as an out of state investor?