All Forum Posts by: Mikayla Parris

@Jay Hinrichs

That’s right, thank you for your help. My last question, should this be presented right now (in middle of the projects) or once the projects are fully complete and sold?

@Jay Hinrichs

Thank you for the quick response, I appreciate the feedback!

How do you make it right? Given the situation where a project has gone over budget, how do I make it right with the partner? Is it owning up to my mistakes, better communication, better transparency, and not making the same mistake twice?

Going with cheaper labor and materials to try and save the budget tends to cause more issues. I talk to our contractors on a daily basis (which has improved accountability with what’s going on with the projects). The process of hiring on contractors has been improved substantially (background checks, license verification, and calling on their references have been a game changer). But how do you retroactively make a project that has gone over budget, right?

Hello! 

As someone who wants to provide value - in your experience, what has been some of the best advice you have received or that you could offer someone managing multiple projects, using other people's money?

- Would you suggest taking a full course in Project Management and earning the certification, (not for the title or the certification, but with the goal being to fully understand the entire process)? If not, what avenue(s) would you advise someone to take to become the best Project Manager?

- How have you overcome making a mistake and correcting it? For Example: Hiring the wrong contractor(s) resulting in the project going over budget. 

-  How have you overcome losing trust by and earning it back? For Example: Losing trust by not offering enough transparency and thoroughly communicating.

-  How do you explain to a new partner that does not have experience in flipping/rehabbing, the ups, and downs of construction?

- What steps have you taken to be proactive when a timeline started to deviate from the schedule? 

@Jay Hinrichs

Thank you for taking the time to respond. Based on the responses do see the pattern in which we are the ones who need to improve and the issues we are facing are ours to fix. Thanks for the advice!

@Jeff S.

Thank you for help and the detailed response. I appreciate it tremendously!

@Rick Pozos

Thank you! I appreciate the advice and will move forward in this direction.

Scenario: We are partnered in a JV deal with a (personal) Private Money lender. This is a four house project - two houses have sold, one is to be finished at the end of November, and the final house in 45 days. We are in a new market and the biggest struggle we have faced is finding the "right" contractors and managing expectations.

- We are to perform 100% of the work, including but not limited to: design, scheduling, managing contractors, accounting, budgeting, (everything that goes into flipping a house), etc.

Our profit split is: 50% of the total net proceeds with no capital invested, interest payments to be paid upon closing of the project.

Our partner is to provide the capital and funding at 6% interest and 50% of the total net proceeds.

We have gone over budget on all four projects. There were expectations on both sides that have not been met which has put a strain on the relationship with our partner.

Our partner has started withholding funds that we need to wrap up the project. We have reworked our system to try and accommodate our partner in order to wrap up these final projects but we are again, in a position where they are withholding funds.

We have requested face to face meetings to go over how we can improve and what they need from us and how we can help meet their expectations. They wanted more transparency and updates as it pertained to funds and project status, of which, I have provided those items. They did not request invoices or copies of receipts, just progress updates, financials, and better communication.

However, since that meeting, our JV partner has been delaying draw releases (which affects our contractors' expectations with receiving payment), and her husband has gone to the job sites and talked to our contractors about expectations that were not met and has pulled them aside to have private conversations. (The husband spoke specifically about their expectations with us to our contractors).

Upon the last draw I’ve requested, she is now requesting invoices for the entire project. I can provide those, however, it is going to delay my ability to continue scheduling and managing the remaining projects and I’m not sure if this is something I should suck up and invest my time in? Is this something I should have anticipated given the circumstances? Do I continue jumping through her hoops with the focus being on just getting these projects wrapped up?

Given the situation, how would you proceed? What is the “right” thing to do?

Thanks in advance!