Get a Jump Start on Your Rehab

Every rehab suffers adjustments, setbacks or alterations of some kind. Can't ever remember the perfect rehab, without any issues. They can sometimes take longer than you thought, or planned. They can cost you more than budgeted. They can be slowed down, stalled or even shut down by forces beyond your control, like weather, code inspectors, or shortage of funds.

With all of these possibilities tied to the rehab that could throw a wrench in the plans, wouldn't it be wise to get a jump start on the rehab?  Here is how that can be done:

When you are negotiating the purchase price of the property (if you are buying it), or the master lease (if you are leasing it/controlling it), insert a contingency clause that states that you have unlimited access to the property, for any reason, prior to settlement. This means that you have to be provided access, either a key, code or otherwise to come and go as you please until the date of settlement.

This can be a huge time savings on your rehab! Why? Simple - you can now schedule walk throughs with contractors, gain bids, calculate material costs, take before pictures, conduct measurements, etc. ALL BEFORE YOU OWN IT!  This means that on the day of settlement you are ahead of the game, can change locks and start the demo that same day. NO DOWN TIME. This probably puts you 2-4 weeks ahead of schedule as opposed to doing all of the things mentioned AFTER SETTLEMENT.

You may not experience a rehab without any glitches, changes or speed bumps, but you can control the start schedule and get a jump start on heading toward the finish line (and that payday if you are a flipper) by making this contingency during the paperwork signing.