For Real Estate Investors
Why look for renovation experts, trade specialists for usual parts of your light rehabs? Need to fix houses often?
The cost of repairs to obtain your desired after repaired value is the worst financial variable confronting those who invest in real estate. This is compounded by the fact that you need to do several of these repairs each year to truly be successful.
How many roofs can your local GC’s replace or repair each year? If the answer isn’t over 12 then you need to know that there are renovating specialty companies that can bring several crews and lots of manpower all year long. Maybe you have a GC friend. It’s OK to bring in help so he doesn’t get bogged down on one house when you really need him moving on to work on fixing up the next one.
So your wondering if you should hire specialists, a handyman or a big construction company. Do you know that the people you hire have the specialized skill to do the work you need? So you closed on your investment property and you want it fixed up. You’re not asking for a full restoration. If you are just flipping houses, time is money. You also need prices that allow you to sell property for a profit. It seems like every house deal needs to replace roofing, siding and windows. Therefore, you need specialists for your fix and flip not expensive General Contractors. Here’s why…
How to save your profit margin from bad contractors
Manage your repairs yourself or with a trusted partner
Clearly, the GC (general Contractor) is fine for a new construction or heavy structural work. But in the real world of real estate investing, the goal is to make a house retail ready instead of a showcase property. Your contractor may not understand the level or renovation you are wanting. Usually, in a way that gets them more work. Hiring a GC means a significant fraction is added to your cost which goes to a company owner or project manager. These funds should instead be going into the workers paychecks and better materials. You don’t want the General Contractor making more profit on your deal than you.
Can fixing houses be better done with specialists?
The kinds of renovation work can be compartmentalized and done with specialists are roofing, siding, masonry, doors and windows, landscaping, flooring, electrical fixtures, kitchen redesigns, bath tub fitting, dormers and additions, wall/ceiling patch and painting. Of all of these, painting is the one you most commonly see performed by an independent contractor.
Use renovation expert specialists
The answer is to use renovation experts that understand the creative investor. I found a rehab specialty company that offers top of the line, high tech siding and shingles. At the same time they have more standard materials and deals suitable for the investment property market. You will gain efficiency in both the work budgeting, scheduling, and worker performance. Specialty companies have well paid and highly experienced workers. Your roof job is not the place for a Jack-of-all-trades type. Repair specialty companies have renovation solutions you need to finish fixing your flip. They can tell you the true cost of replacing roofing and siding.
Multiple crews for multiple investment properties
A GC has a company crew or maybe two. When you need to work on several houses at once they can’t handle it and you can stack up all the GC’s in your area and still not have enough manpower. Specialist companies have lots of crews and allow you to schedule specific tradesmen to work on several properties in rotation. Try to get GC’s to work together like that. With home renovation specialist experts they get in, get it done, and move on to the next one. Completely independent of other repairs being done. This will give you a steady supply of homes ready to sell for big profits.
Use their financing
In house financing (Sears) or in house brokerages (Hansons) offer very competitive rates from motivated financers. I especially like this strategy to save interest, points, and total balance. This way you borrow less and show that you have skin in the deal to your lender. Carrying repair costs will decrease your Loan to Value ratio of your investment loan. So it’s like sweetener for the datasheets I send my private money lenders. The more of the rehab you can carry yourself, the better your chances of success with your purchase \ renovation loan approval.
Financial Tip: Get a high bid on roof or siding repairs and have a specialist company do the work for less. Then pocket the difference.
Get your renovation experts on the job right away. Your job can be done any time of the year!
Nothing feels better than the contract when you have insulation installed in the wintertime.
Red Bud Inn, Inc. Says:
We just had a much needed roof replacement done by Hansons. Their financing made it possible. They conformed to our business schedule. We are very pleased with the work performance of their crew under difficult circumstances. The way they meshed with the other work going on around the front porch was also appreciated.
Want some more proof?
Here’s What People Are Saying About Hansons…
Here’s a YouTube Testimonial From A Neighbor who likes the way they fix houses in Michigan
Hansons Does Windows Too
They are great renovation experts.
The Red Bud Inn Inc is a bed and breakfast using the Air BnB online platform.
Here they are on Facebook
and their home online where you can get a booking