# Entrepreneur of the Week Shoshi and Hanoch Dombek # Post 5 # **** A moment before the action **** Thank you, thank you for the comments too…

# Entrepreneur of the Week Shoshi and Hanoch Dombek

# Post 5
# **** Just before the action ****

Thanks, thanks for the comments both in the forum and in private. We are glad that so many people benefit from our posts ????. And today on the preparations for the renovation.

The flip flop strategy requires a lot of learning time. point. We will probably not be able to discuss all the moves here and now, however, this is just a post .. but if you are willing to commit and devote the time needed to learning you will discover a very profitable channel. Of course, the higher the risk the higher the reward should be. The only way to define your probability of success is to acquire knowledge. For a new investor we always recommend starting a project that requires a minimum of work and over time, as you gain knowledge, experience and confidence, you can take on bigger and bigger projects. In any case, whether the renovation is small or large, we are required to do the same preparatory work. So here are the main points:

Preparation of a work plan - the most important action is to dismantle the change, renovate the messengers and write the work plan. This streamlines work and allows remote project management and even multiple projects simultaneously. As real estate developers, our goal is to reduce attendance in the field and free up space for the staff members who work with us for the work processes and specifications we have set in advance. The work plan is the key to success. The work plan consists of two main documents:

1) Content of the work Scope of work - This list lists exactly the scope of work and what needs to be done in each area of ​​the property. The plan is divided according to the areas of the house and describes the end result we want to get. We will probably be precise and detailed down to the smallest details, even at the level of materials, so we will get a better and more accurate result for the purpose. It is important that each of our work team can imagine in their head the image of the end result we want to achieve. Remember that the language barrier also needs to be overcome and we do not mean the English language. Most of the workers in the construction industry are poor English-speaking Mexicans at best. The fact that they nod their heads and say yes yes yes does not require that they understand a thing or half of what you wanted. Use illustrative images, HOMEDEPOT catalog numbers, pantomimes, translation programming and anything else that will help convey the message. The responsibility for the team to understand the plan is on us. The content of the work will be used by you to receive quotes and an integral part of the agreement with the contractor.

2) Schedule and order of works. One must plan what work is done and when. What can be done in parallel and what in a column. You do not want to bring the paint after you have already laid a new floor… In a complicated project we usually build a Gantt chart of the process.

Photographing the property before and after - the photos before the renovation help in the preparation of the work plan and allow us to go back and check the plan without having to return to the property itself again and again. Take as many pictures as possible of each place where work needs to be done, including pictures during the work itself. The photos are useful in case we sell the property to a buyer using a mortgage and the bank asks for proof of the scope of work done. This is true different when selling a property at a price much higher than its purchase price and within a short time of the purchase we made.

Quotations and selection of contractors - Ideally ask for at least 3 quotes for each type of work. Do not compromise on less if you are in the beginning and still do not really control the market prices and do not agree to a general price without details. Each section of your work plan should be priced and open to negotiation.

The things that must be done to protect ourselves - can some important documents that must be signed before starting the renovation: (Proper Disclosure: We are not accountants or lawyers. The text only reflects what we do in our business and is not legal or accounting advice.)

• Employment contract with an independent contractor - to specify work rules, providing responsibilities, schedule, experience of delays. The contract is supposed to protect you from the origin and something unusual happens. Payment schedule usually then achieving defined milestones.

• Work Plan - After presenting the plan to the contractor and summarizing the details agreed upon by both of you, each party signs the plan

Contractor Insurance - The contractor should be required to add your company name as a co-insured to his general insurance

Form W9 - - A document in which a number identifying the contractor in income tax. That the contractor is not incorporated as a company (LLC or INC) is required to file a 1099 income tax return. Another reason is to ensure that the contractor is a self-employed and not employed employee.

• Waiver of a lien - At the end of the work and before receiving the final payment, the contractor must sign a lien waiver form that protects you from filing a property lien claim in case of dispute with the contractor or if any of his continuation contractors.

And a few words to conclude, property renovation added value not only to the house itself but also to the neighborhood where the house is located. You will find that the neighbors cherish gratitude to everyone who invests effort, time and money in improving an old-fashioned and shabby-looking property and turning it into a home that is a pleasure to look at. Renovation touches not only the walls of the house but especially the people around it and it is always re-exciting when the buyer wholeheartedly thanks for the wonderful house he has purchased from you.

Implied tomorrow

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