A common rule of thumb with flipping is ensuring the numbers are as accurate as possible. Right below that is ensuring the job is being managed properly. It’s this second rule where rehabbers sometimes run into trouble as they attempt to stick to the budget while collaborating with contractors.
In a perfect scenario, the contractor is a trustworthy one but that may not always be the case. To best manage your fix and flip contractors, one of the first things you may wish to do is making a careful of what the work entails. This way, the contractor has guidelines and you have your expectations documented. You can narrow this down by categories like electrical and plumbing and always be explicitly detailed in what the job involves.
Ensure the contractor gets paid reasonably and has the tools and resources to complete the job, but don’t make payments too far in advance. A steady stream of incentives encourages the contractor to get the work done and reduces the odds of running into a situation where they cease to show up. This can happen regardless, but at least you’ll have funds available that can be used to hire someone else to finish what the other contractor started.
This update is by hard money loans Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on hard money lenders Miami or Florida hard money lending, please call 954-816-0388 or fill out our application.