All Forum Posts by: Christopher B.

Yes, I would never let an employee have direct access to my business checking account. 

I will still be a part of the budget and creating SOW's. I will dictate all finish materials and let the PM handle the rest. PM will have a capped CC and access to trade accounts. Purchases will be reviewed and confirmed weekly in-house by auditing against receipts, bookkeeper records, and budgets. 

You don't leave workers unattended? Not sure if a security system would help, never tried. I don't stand over top of my crews but managing sites is often like babysitting and gets old. That goes for any level of job too. A friend is a PM for a luxury home builder. He calls it babysitting. Talking to someone yesterday and her fiancee was a PM for a commercial builder that works on airports, etc and he says the same, babysitting. The only people that don't think contractors need baby sitting are the contractors. Hence my desire to hire a full-time PM. 

I haven't hired one yet. Look to have a PM in place by the end of the year. To find one, well that is easier said than done obviously. I have a friend that is a PM for a local builder and knows other PM's. Hopefully that will lead to something, if not I will work my network, supply house salesman, and advertise if I need to. 

@Patrick Philip Intellectually the job site work is not that difficult. Admittedly, getting things done sometimes defies standard protocols. The downside of construction. I agree in that the most frustrating thing in my business is getting work done at the quality and pace I want done. I have simply grown tired of managing jobs and will be happy to hand-off those duties to a well paid PM by the end of 2018. Then I will spend my time on other aspects of the business, in addition to other businesses. 

@Account Closed No offense is taken. Everyone has their own way of doing things. If being on the job site is what works for you then keep on rockin. There is no right or wrong way for someone to run their business, it is a personal decision. 

 Doesn't matter..

 No offense but you are focused on tasks that aren't the highest and best use of your time. Managing a jobsite isn't intellectually difficult. Finding the deals and setting up a business, that is where most fall short. 

@Mike Cumbie

I don't disagree with you. I understand while it has worked out for me so far there are risks associated with it and I continually try to learn the specifics of contracts. I also use a combination of sales tactics; agents, flat fee listings, and even deal straight with my end buyers without agents on either side. I use a law firm to handle those closings. The agent that handles my flat fee listings also has a service where they will review and advise on the contract for a small additional fee. While I haven't used that service yet I may do so on my next flat fee sale as you do have some good points. 

Thanks for the insight.

 Do you actually wholesale or are you just promoting your cold calling company? 

Good thread.

A few tips from my personal experiences and mistakes.

Quickbooks online. It's the standard. Everyone says it, nobody listens, including me. I didn't use any bookkeeping my first year. Then used an accountant and Xero. That was ok, then I switched to QB and a bookkeeper that only works with investors. It was a bear to get everything fixed in xero then even worse to get switched to QB but the future is bright in that regard, finally. Track, track, track the numbers. This is the information and knowledge that will lead you to growing your business.

1. You need a purchase agreement (don't always need or will work with an agent)

2. Ask him the best way to structure your business. Discuss your short and long-term goals. I'd say he will recommend just a sole prop with insurance until you have some assets. Just my uninformed hunch, no advice there. 

3. Your lawyer and accountant may not see eye to eye on your structure, their recommendations are based on different goals and outcomes. Decide what is best for you. 

4. Use excel to manage any rentals or rehabs. Get organized as best as you can in the beginning, make sure to grind and continue improving these as you learn.  Don't get caught up in new shiny object syndrome with all the technology, KISS in the beginning. 

For $2K go with Whirlpool or GE.  Most investors in my area use Frigidaire, and I will too in cheaper houses, but they look cheaper and just have a cheap stigma to them, IMO. Maybe I am an appliance snob though. Instead if driving around all day to save $150 bucks find the local dealer that supplies to builders. My local dealer will piggyback me onto their tract builder pricing. It doesn't save as much as you'd think but it makes it easy to price, same dimensions, and easy delivery and set-up.