Posted by Rob on January 27, 2005 at 19:41:32:
I’ve only dealt with 2 rehabs at a time so you are way ahead of me. But, before I got into real estate investing my career was to manage the quality control of all construction crews on several different sites. I’m talking multi-million dollar projects like stadiums, airports, malls etc. You talk about STRESS! In my experience, it really helps to hire quality people. As investors we want to go the cheap route, but cheap can cost you more money than if you hired the person that cost just a little bit more. Your time is important and can be used to acquire more properties. Also, it helps to know construction practices, that way you can communicate effectively over the phone.
You will of course have to check up on the progress of your projects, but if you carefully hire good quality effecient contractors, your trips to the site will be reduced and so will your cell phone bill.
Most of the contractors I’ve worked with usually don’t need to show me anything unless it’s a major concern. Usually they just call me to ask me for an OK on something. Conversations normally only last about 5 minutes.
For the really good contractors, usually an initial thorough meeting at the site prior to construction proves its weight in gold. They need a clear vision of your plan. I usually have all of my details for my projects written up. I give it to them, we read it, then we walk through the property discussing every detail. I or the contractor may have a can of spray paint or marker and we will write on the walls that need to be torn down and such. I also have them sign a form that indicates the amount of draws they will have (usually 3 draws). The good contractors will correctly estimate how much they will need for each draw. I sarted doing this so they don’t come crying to me every other day asking for $500 or something. If they were working for an institution on aproject the rules would be the same. Most of the time they have to wait 3 months to get paid from the big corporations.
I’m sorry I could not be of more help, but very thorough preparation could eliminate SOME of your headache. Construction can be a real headache at times.