Contractors and Time on the Job
Ok, so you have taken your hard earned money and bought yourself an investment property.
You are intending to either do one of two things with your purchase.
You intend to fix it up and put it into rentable condition.
Or you intend to fix it up and put into condition that would make it attractive to someone wanting to buy it for themselves.
In either event you need someone to do the rehabilitation (rehab) work for you that you can depend upon to achieve your goal.
Well, let’s look at what you are facing.
First off you need to find a contractor who knows how to make what you want happen.
Second that contractor needs to be able to do the job within the budget guidelines you both agree upon.
Thirdly that contractor needs to be able to finish the job on time.
Here is an example for you to consider.
A friend of mine and his wife bought a townhouse in Houston. They were excited to move into their real house and get out of a $2,000 a month apartment rental that kept going up year after year. New rate was to be $2250.
They closed on the townhouse in August. They hired a contractor for their work.
They paid the contractor the down payment. He and his team showed up on time, on Saturday…worked all day Saturday and came back in full force on Sunday.
My friends thought they had found a real go-getter.
No one showed up on Monday..or Tuesday. My friend called the contractor to see what was going on. Maybe a problem with materials?
The contractor then advised the couple that they only worked on the weekends since they all had full time jobs. Long story short. They finally finished the rehab project and got moved in December.
So for August through December…. They paid the $2,250 apartment rent as well as the mortgage, utilities and insurance on the townhouse….because they took the cheapest contractor bid.
Was this smart? Was it really the cheapest bid when you compare apples to apples?
Well, ask the neighbors who had to listen to hammering and loud noises during the entire time on the weekends, especially that jackhammer taking out the rear patio for drainage issues.
Not the best way to start off your neighborly relationships is it?
Or how about this?
You hire a contractor and they show up the first couple of days, but then are gone the rest of the week.
You call them and are told they had to pull off of you job because they had to be at another house to finish before the plumber, electrician etc. got there.
Not to worry, we’ll be back soon.
So, how much does this cost you in money, time and frustration?
You wanted the house ready to sell or rent by a certain day and now it is going to be a month later.
Is this lost money?
Of course it is.
You wanted this project off your plate before you went on vacation with the kids.
Are you going to have a good trip knowing you are not able to see what is happening to your property?
I don’t think so.
Get some references, ask about the estimated length of the project.
Talk to some REPEAT customers….were they happy with the final product?
Did they think they got their monies worth?
Was the original bid realistic or entirely too low?
Learn from your mistakes, this process should be fun…..