I wanted to share one of my big mistakes
when I first started, and hopefully it will
prevent some future headaches for you. :)
I'm 22 years old...
I just bought my first fix and flip while
finishing up my last semester at the
University of Texas in Austin, and
also working part-time as a waiter
at a sports bar. (Go Longhorns!)
Needless to say, I was very limited
on time and my finances were tight.
I had to schedule meetings with contractors
in between classes, during my lunch breaks,
and sometimes late into the evenings
when I was dirt tired...
But I didn't have a choice. Time is money.
Like many investors, I tried to find the
BEST contractors for the CHEAPEST
price...
If you're new to real estate, that doesn't
exist, lol.
Since I was a newbie at the time, I put
a lot of trust into what contractors quoted
me, and worst of all, what they told me.
THAT was my biggest mistake.
It cost me THOUSANDS of dollars
because I preferred convenience
over quality.
Until you have systems in place,
YOU have to be there to set the
standard and that does take time.
Here are 9 things I learned from my 1st deal:
1) Never get pressured into paying your contractor before their work is done.
2) Pull at least 3 quotes to create a price baseline budget
3) Keep track and lock your materials up to prevent theft.
4) Ask for referrals and testimonials to prove work is done right.
5) Set CLEAR DEADLINES and expectations to prevent delays.
6) Visit your work site at random times to review progress.
7) Have backup contractors ready to go in case things turn south
8) Don't rush picking your contractors.
9) Use Yelp NOT Craigslist. Reviews are better than none.
It's my hope that this "checklist" will save
you thousands of dollars and hours
worth of headache.
Have a great rest of your Friday, and best
of luck on the deals you're working on.
Good Investing,
Frank Chen