The 7 Stages of Rehabbing Houses -Tennessee Treatment center insurance
The most important thing to do in any rehabbing business is breaking the rehab process down into stages. This will ultimately allow you to systematize the entire process in order to remove any guess work as well as allowing you to continuously duplicate the process.
It is important to first educate yourself by learning the prices of labor and materials as well as finding, prescreening, hiring and managing “mature”, “grown-up” contractors in your area. This is the foundation of a successful rehabbing business. Knowing the prices of labor and materials, terminology, & required tools will allow you to better communicate and gain the respect of all contractors.
Step 1: Initial walk through
The initial walk through is where you will do the majority of the legwork for the rehab and Tennessee Treatment center insurance. There are certain things you will need to bring with you to the walk through of the property:
– A digital camera – taking pictures will allow you to reference the property when creating your scope of work. Pictures will also be necessary down the line if you’re going to sell the property retail to an end-buyer using conventional financing. You will be able to provide your before photos and scope of work to the lender as evidence as to why you’re re-selling the property for a large profit in a short period of time.
– Property inspection form & graph paper – This is where you’re going to spend most of your time during the initial walk through. At this point you’ve already done an initial walk through and you’ve presumably done a property inspection form.
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To detail the improvements that “need” to be done, you’ll also want to look for potential extra improvements that can be done to increase the saleability of the property when re-selling it to a retail buyer. You can use the graph paper to sketch a layout for referring to during the scope of work.
– A lock box with keys – Putting a lock box with a key in it on the property will help to save time and will allow contractors access as needed. This will help everyone work more efficiently and will save you from unnecessary headaches during the rehab process.
– Advertising materials – You should always bring advertising materials to leave at the property during the rehab process. This of course will help to promote your business. You may want to put a sign on the front lawn, a box with flyers about the property and project in it, or even a banner outside the property.
– A Flashlight – It’s always a good idea to bring a flashlight with you in case the power hasn’t been turned on or doesn’t work. You don’t want to waste a trip and not be able to complete the walkthrough.
Step 2: Scope of work
The scope of work itemizes exactly what needs to be done throughout the entire rehab process. When someone is done reading the scope of work they should have a clear vision of what the finished property will look like. You will reference the scope of work during every step of the rehab process. It will list all of the exact materials, paint, carpet, siding, etc that will be used. All the materials need to be listed along with their cost. This will not only save you an incredible amount of time, it will also eliminate any discrepancies with contractors and other workers and provide accountability.
Step 3: Contractors & Job Bidding
When it’s time to start getting contractor bids you will want to make sure to bring in multiple contractors and get multiple bids. You should provide a nice professional looking scope of work. If you provide a standardized quote itemization form and leave them at the property for the contractors bidding the job they can fill-out their material and labor charges for every component of the job and send it to you. Also with these bid sheets you’ll also gain the knowledge of pricing as you read over these multiple bids from contractors. Plus, you will know exactly what contractors are charging you for every single component of the house rather than just giving you a flat price for the entire job. Therefore if you have a particular aspect of the job that was priced significantly lower by another contractor (i.e. roof) you can plug another contractor into that specific element of the job and save money. Hiring the right contractors is by far the most important element of any successful rehab project.
Step 4: Contracts & Documents
Now that you have all of your contractor bids and have evaluated and made your decision it’s time to sign the appropriate contracts and documents. The liability of getting all the necessary documentation signed is something you always need to adhere to. Don’t even think of doing a rehab and working with contractors without all the documentation property filled out and signed. Once you’ve selected the right contractor for the job you will want to sit down and have your initial meeting.