Managing Multiple Projects and Other People's Money

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Managing Multiple Projects and Other People's Money

Mikayla Parris
Flipper/Rehabber · Portland, OR · Member since 2017 · 7 posts · 2 votes

Hello! 

As someone who wants to provide value - in your experience, what has been some of the best advice you have received or that you could offer someone managing multiple projects, using other people's money?

- Would you suggest taking a full course in Project Management and earning the certification, (not for the title or the certification, but with the goal being to fully understand the entire process)? If not, what avenue(s) would you advise someone to take to become the best Project Manager?

- How have you overcome making a mistake and correcting it? For Example: Hiring the wrong contractor(s) resulting in the project going over budget. 

-  How have you overcome losing trust by and earning it back? For Example: Losing trust by not offering enough transparency and thoroughly communicating.

-  How do you explain to a new partner that does not have experience in flipping/rehabbing, the ups, and downs of construction?

- What steps have you taken to be proactive when a timeline started to deviate from the schedule? 

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    Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y

    simple you take less and make the money whole even if you make Nothing.

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    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      6y

      all of the above has happened to anyone who has flipped or built more than a few homes. bottom line

      myself included.. to mitigate you own up right away and you make it right. 

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    • Mikayla Parris
      OP
      Flipper/Rehabber · Portland, OR · Member since 2017 · 7 posts · 2 votes
      6y

      @Jay Hinrichs

      Thank you for the quick response, I appreciate the feedback!

      How do you make it right? Given the situation where a project has gone over budget, how do I make it right with the partner? Is it owning up to my mistakes, better communication, better transparency, and not making the same mistake twice?

      Going with cheaper labor and materials to try and save the budget tends to cause more issues. I talk to our contractors on a daily basis (which has improved accountability with what’s going on with the projects). The process of hiring on contractors has been improved substantially (background checks, license verification, and calling on their references have been a game changer). But how do you retroactively make a project that has gone over budget, right?

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    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      6y

      simple you take less and make the money whole even if you make Nothing.

      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      2Reply
    • Mikayla Parris
      OP
      Flipper/Rehabber · Portland, OR · Member since 2017 · 7 posts · 2 votes
      6y

      @Jay Hinrichs

      That’s right, thank you for your help. My last question, should this be presented right now (in middle of the projects) or once the projects are fully complete and sold?

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    • Erik Stewart
      Rental Property Investor · West Fargo, ND · Member since 2015 · 94 posts · 51 votes
      6y

      @Mikayla Parris

      Lots of great questions here! A lot of it starts with the partnership arrangement you have with your partner and setting expectations up front before any deals are done. If you have a partner who is going to be involved but doesn't have experience, just know you're going to have to teach, explain, communicate, and be patient.

      Many of your questions are the same ones I have asked myself when I started out. I try to put myself in my partners position and ask myself the same questions. If I were a lender and lost trust in my partner, why would that happen and what could be done proactively and retroactively to correct it at least reduce the damage done. If you want to continue to do business with your partner and you make each other better investors, I would go to great lengths to persevere the long term relationship above short term profits. Every deal is a learning experience and the next one should be better.

      To address the question about project management classes, I don't think it's necessary but it definitely can't hurt anything! Constant self improvement and learning is super important over the long term. Hope some of my rant helped!

      -Erik

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