New Investor Mistakes That You Can Not Afford To Make! Part Ii

By Author: Zack Wiest
Total Articles: 8
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Money is either made or lost during the renovation phase. Even after 804 real estate transactions and counting I struggle, at times, with the rehab phase. So, New Investor Mistake #3 is:

New Investor Mistake #3 - Not Preparing For The Rehab Phase

1] Create a detailed Scope of Work clearly explaining everything you want done to the property. It is not sufficient to say "Drywall where needed". Instead it should say "Drywall north wall in rear bedroom, 3rd floor". Be detailed so there is no confusion as to what you meant.

2] Walk contractor through with your detailed Scope of Work so you both understand what will take place. This is a great time to point things out to your contractor and its also a great time for your contractor to point things out to you.

3] Get everything in writing. Don't ever start a project without a written Independent Contractor Agreement. As a client of ours, these are provided to you, free of charge.

4] Watch your project closely. You should be on the jobsite at least twice per week. On your off days you should contact your contractor by phone to make sure everything ...
... is going as planned. The second you stop showing up and calling is the second your project will stop. Be diligent about this. You will want to make sure your contractor is following a logical rehab progression.

I suggest following this schedule:

1] Demolition / Trash Out
2] Roof / Windows / Siding / Gutters / Structural
3] HVAC / Plumbing / Electrical
4] Framing / Subfloors
5] Drywall / Patch and Prep
6] Paint
7] Kitchens and Bathrooms
8] Finish Items
9] Owners Punch Out List
10] Carpet Install
11] Cleaning / Landscaping
While rehabbing properties is never easy, and unfortunately will probably never be easy, it is manageable, if you follow a few simple rules.

I hope this article helps you become a better rehabber.

Zack Wiest is owner of PA Deals, LLC. They are a residential real estate investment firm located in Harrisburg, PA. Though founded in 2006, the principals of the company have been investing in real estate since the year 2000. You can find out more about us at http://budurl.com/padealsbmpart