Communicating Timelines to Rehab Teams
Member since 2025 · 25 posts · 5 votes
Communicating Timelines to Rehab Teams
4 Replies
- Member since 2023 · 348 posts · 190 votes9mo
Hi Heidi!
This is where having a solid project manager, or at least someone who can act like one, becomes invaluable. If this is your first rehab, I recommend putting extra time into building your team before the project starts. Vet your contractors thoroughly, ask about their current workload, and be very clear about the timeline up front. If they can’t commit to the schedule, it’s better to replace them early than deal with delays later.
It’s also important to choose contractors who can deliver on time, even if the price is slightly higher. The cheapest bid may cost you more in the long run if the project drags out & you don’t want to get stuck paying monthly interest longer than planned or needing a loan extension. Extensions almost always cost more than simply hiring the right team from day one.
Clear communication, expectations in writing, deadlines, and accountability check-ins can make all the difference.
- 9moMike GrudzienPro MemberLender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
I communicate very specifically, request confirmation back and communicate often.
- 9moStacy RaskinBusiness MemberLender · Member since 2022 · 1k+ posts · 497 votes
From the investors I've worked with, it's important to have referrals for contractors and sub contractors / whomever will be doing the work.
Once you have the right team in place, having a project manager or someone to fill that type of position if you aren't doing it yourself but it's important to create a line item budget and calendar when milestones are expected to be hit before the work starts. Having these conversations upfront with your rehab team will help to make sure everyone is on the same page. Generally work takes longer than expected so important to build in a cushion so you don't have issues with financing if you have strict deadlines.
Many fix and flip lenders will require a line item budget in underwriting to have an idea as to what the money will be used for if approved and it also helps to set up the investor for success.
There are fix and flip lenders that have 12 month or more repayment terms where investors either sell at that point or flip the fix and flip loan to longer term financing such as a DSCR loan if it's going to be a rental that the investor keeps.
Happy to connect to discuss further.
Bright Skyline518 Reviews - Specialist · NJ · Member since 2022 · 1k+ posts · 649 votes9mo
You want the honest opinion? They will not care much. The problem with that piece of the puzzle is that they get their profit before you exit the loan. It should be in writing, signed by all parties. You should get a Phases breakdown. Phase 1 - Demo, roof, HVAC (this should take 10 days) Phase 2 - Plumbing, electrical, patch roof (this is two weeks) etc.
Too many people jump in with anyone who says they can do the job b/c you just wanna believe it so bad. Look, I have nightmare stories with contractors and I explained the GC hustle on here before. All they have to do is run around starting jobs, getting that first deposit and just never finish any of them and throw new money at the old projects. Real Firm like work, that is very expensive. Knock around GC, I call them lone wolves, it's the equivalent of junk bonds. You can very well lose but if you should get lucky it can be a big win. Maybe you find the GC that sticks to timelines, budgets, and has open communication.
The real, only way to do it in my opinion is run the subs yourself. You just need to know the order of operations. Cause look at what you need: Demo (very easy to find), Mechanical work (you want a licensed pro here, permits are involved), Roofing, landscaping too easy to find. For Kitchens and Bathrooms there are lots of 3rd party companies that specialize in that. Floors? Any flooring company will come and lay down your rugs or snap in your LVP. So now we are down to the interior finish. The sheetrock, tape, spackle, prime, paint, and all the molding and baseboards. These is the one facet where the talent of the sub matters. This needs to be pristine. There's a technique to sheetrock so it's a grade 5 finish and looks seamless. This can be a tough one and a good sub at this will want 300 - 500 per day and that's just labor. This is the one trade where I'd overpay for perfection. Then after this, paint? Anybody can paint. That's easy to find. Then the final deep clean, also easy to find.
This is a lesson I learned dearly and I will pass it on here. When you hire a third party GC to manage the project, that also means they will be handling money and managing money. If they are bad at either...say bye bye money. That's your risk. And the lender will not care. If the GC spent 50k and you only have 20k in work done, that is on you. And you ask how does this happen? The inspectors are lazy and often the GC is there during their walkthrough and they say things like, that will be 100% complete tomorrow. We're a little behind but can you release the full amount? Believe me, your money you borrowed is not being protected by anyone, on the contrary, people can't wait to get their hands on it.
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