5 Keys on How To Create A Scope Of Work When Flipping Houses
ฝัง
- เผยแพร่เมื่อ 31 พ.ค. 2024
- If you’re doing any level of renovation of a house you MUST understand how to create a scope of work.
And if you’re thinking your “investor-friendly” contractor will do that you’re sorely mistaken!
🎁You can now TEXT "SOW" to 210-794-9898 to get the FREE Scope of Work Cheat Sheet 📋
In this episode, I’ll show you the 5 keys 🔑 you need to know about putting together a scope of work and how to execute it.
⏰Time Stamps ⏰
2:15 🔑 Why You NEVER Rely On A Contractor To Create A SOW For You?
4:15 🔑 How Does The Process Work?
14:04 🔑 Creating A SOW
18:25 🔑Dealing with Change Orders
21:18 🔑Don’t be Emotional
📒SHOW NOTES📒
🔑 Why You NEVER Rely On A Contractor To Create A SOW For You?
A good contractor needs to know HOW to do the job
YOU as the investor needs to know WHAT that job needs to be.
You know this by running comps and seeing what other houses IN THE AREA have done.
Contractors bring their knowledge and experience from doing homes all over the place. But real estate is location-specific.
You may not need to do to one house on one side of town the same work you will do to another.
Neighborhoods are different, buyers are different, and houses are different. Comps will show you this.
🔑 How Does The Process Work?
I recently did a walkthrough of a project we are currently rehabbing.
In this video, you will see what it is that we look at when walking a house. At the end of this, I will also show you what the ACTUAL SOW looked like when completed.
🔑 Creating A SOW
Now that you’ve walked the property and looked at the comps to determine WHAT work must get done you can walk it with your contractor.
You can tell them everything that must get done and see if they have other ideas in a better way.
Now, you create IN WRITING a detailed SOW…
✅ What are they removing?
✅ What are they installing?
✅ Who is responsible for which materials?
✅ When will the draws be made?
✅ How much will be held back till completion?
🚨BE SPECIFIC! BE CLEAR!🚨
🔑Dealing with Change Orders
A Scope Of Work is a breathing Doc
Depending on the size of the project changes will be made as the project moves forward.
This DOESN’T mean you let them get away with everything as a “change” order.
🔑Don’t be Emotional
❌You’re not going to “sue” them so stop saying that!
❌You’re not going to hit them either
❌Don’t be so quick to fire
❌Don’t fight
❌Don’t assume they’re always trying to screw you
✅ Be strategic
✅ Try to resolve all issues or misunderstanding
This is NOT an easy business. Don’t be upset because you have to put in work.
🚀BONUS TIP: Control the SOW
Don’t let them jump around too much. Control the phases. This way if you need to fire them you can get someone to step in.
📽 ✂ Video editing is done by / directordreday
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Great job
Thanks 😊 let me know if you have any questions
2 comments:
This is south Texas! We put ceiling fans in all bedrooms and living areas 🤣
We only scrape popcorn ceilings if they are falling down already or maybe in a high end/luxury flip. But those probably wouldn’t have popcorn in the first place 😬
Haha, 😂 We always go by the comps, and we have done $350K+ homes and NOT put ceiling fans, and they have sold in less than a week (Pre-covid).
The Popcorn is usually a must for us simply because of the conditions we buy these houses and/or the price points we're targeting. If we put out a better product, we usually get more for it, and it sells faster.
But, that's what I love about REI, there's no ONE way to do this... even though our way is usually better. 😝
You're pretty good man! Thanks for all your help
Thank you for watching! Don't hesitate to reach out if you need anything
@@AnInvestorsJourney do you have an actual draft for the scope of work, man?
Good information.
Thank you sir!
Great concepts on implementing CONTROLS to properly manage contractors!
Thanks! And yes, you have take as much control as you can in order to prevent big problems.
What about paying for materials to the contractor, will he also shed this and only at the end of the work pay him for materials and labor, what is the method regarding paying for materials?
Does he buy and bring a receipt etc?
If you have a contract with a contractor I would be happy to accept ..
We either have them call us from Home Depot and we’ll pay for it. Or, they buy it and we reimburse them. But that depends on the materials they’re buying and the scope of work. Either way we agree to all of this before hiring them.
Wait wait wait so indeed your teaching this for the general contractor? Bc u said protect ur investors money ? If I’m an investor hiring a general contractor do they make the scope of work or do I?
As the investor, you should be making the SOW.