#entrepreneur This week - post number 5 - renovation of the property
Oh the renovation
I'm pretty sure any of you who have already gone out to make a deal in the US already understand that in my opinion this is the more complex part of the story.
Renovation is a complex thing, it's a whole world of concepts and an understanding that most people have no idea about, certainly not about properties in the US and it always involves surprises, changes and anomalies.
In my classes I go into the depths of the beam on the subject of renovations and it is a subject that is learned in more than one 4 hour lesson so I know in advance that this post is destined for failure…. That is, there is really no real possibility of teaching and explaining this world on one foot
After countless deals in which almost everything I could think of happened, I built myself (and my students) a neat overhaul list that allowed me to control, manage and analyze the details.
Its purpose is to enable the construction of a scope of work for a specific property and to estimate the renovation budget fairly accurately with a deep understanding of how much is going to cost everything and every area and area of the property.
I think if you do not know what the cost of the material in your property (ie how much bathroom cabinets, flooring, air conditioner, roof etc.) cost and what labor cost (Labor) you are in real exposure.
I recently came across a company that received simplistic bids from local contractors, argued a bit about the price (without even understanding what they were getting) and eventually found that the materials did not fit their requirements, that the work did not include a lot of work done, that there was a significant deviation in the budget and in short term endless problems that happened along the way .
So what, anyway?
• My suggestion to you is first of all to build a detailed overhaul list with the contractor detailing everything in both material cost and labor cost, which will be divided by rooms, which will include the Inspector License report and the things that require repair or replacement, which the contractor will provide you with a quantity statement for the material.
• Make sure you get at least 2-3 renovation bids for your property (especially in the first assets until you find a reliable team that you can work with) and compare the offers and items.
• Take a good look at your contractor! Ask for recommendations, photos of properties he renovated, call his clients and talk to them, make a tidy work agreement that includes the pre-made renovation list and late fines! You will receive an insurance certificate and personal information from him. In short, make sure it's your man.
• Payment schedule!!! Perhaps the most important thing that will protect you along the way. Make sure to pay your contractor in parts and only after the work is completed (usually it is divided into specific areas or works in the property), for example after finishing the kitchen installation we will pay for the installation (after our field man comes to check and approve the work) and make sure a large enough part remains to be paid. !
• Take into account an excess of 10-15% in your renovation budget! This is the nature of the process, there are gaps, things happen and you must know to take them into account in advance, if at the end it does not happen then you have earned some more
In the beginning I would send several contractors to get quotes for the same job, just to compare and learn, ask questions about the material and how the work is done doing a comparison. For example, in cold countries during the winter, it should be taken into account that it is not possible to perform outdoor work such as painting or washing the house.
That the heating needs to work constantly to keep the pipes from freezing and exploding (happened to us )
That while painting and drying drywall (drywall) the system must not be heated and must be cleaned otherwise the system will be burned and destroyed (also happened)
And of course there are many other things
And especially here, building your team is important and critical, finding the right contractor for the field person to visit and oversee the process and also having the understanding and knowledge that will allow you to manage this entire process.
Good luck
