Investor · New Paltz, NY · Member since 2023 · 4 posts · 3 votes
Currently learning as much as I can on long distance investing. Area i'm lacking in is estimating repairs and experience for managing contractors for a value add property when not doing it in person. Any books/recommendations is appreciated!
Oof long distance investing and learning - I struggle with managing local contractors *facepalm* Nothing beats getting in the area like Ziad said and getting hands dirty. Wish you the best!
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
2y
One cardinal rule I learned from contractor behavior is always make sure you are in control of the money pile. If you allow the contractor to get ahead you may never see him/her again
Estimating repairs - talk to as many contractors as you can. Have them tour the property and give you bids. J Scott had a book on BiggerPockets "The Book of Estimating Rehab Costs", and when I bought it a few years ago, the pricing was fairly accurate. However, that was a couple years ago and, at the end of the day, nothing will be getting estimates from the people you will actually hire.
Managing Contractors: I have never done this remotely, and struggle with it when I live 5-10 minutes from my projects and can be there most days. A couple bits of advice: have a non-contractor person lined up to check their work. Cell phone photos and FaceTime calls can hide a lot of marginal quality work. And don't pay them based on percentage work done. Have clear project milestones that are paid. More details better. I have always been burned when I hire a handyman that can do the full job, and he says: 1/3 upfront, 1/3 half way through, and 1/3 when I am done. Upfront, easy. What is halfway done? Demo and drywall make a big difference, but painting and trim work take WAY more time. And equally important, my experience with contractors that manage their KPIs this way, are generally bad with finances, so start asking for weekly draws anyways because they need to pay their bills and have no savings.