Seeking Strategies to scale up
I'm under contract with my latest flip, the proceeds of which will pay off the heloc that I use to buy and rehab properties. My biggest problem is contractors who can't keep a timeline, and that's really slowing me down. So I'd like to hear your strategies on the best ways (safer ways?) to get more than one - or even more than two? - properties going at a time as a sort of hedge against 1 contractor holding me back on 1 property rehab. It seems like it would be great to flip one property while planning on getting another one ready to add to my rental holdings. Because cashing out properties now takes 12 months on title, brrrring has gotten a lot slower for me. Should I just DSCR my way into two properties? Thanks for your thoughts. Please, no solicitations.
Most Popular Reply
#2 Contractors Contributor
- Severna Park, MD
@Alan Mills You mention contractors not keeping a time line , not General Contractor . Scheduling is the hardest part of construction , good subcontractors are not sitting home waiting for the phone to ring , they are scheduled out weeks if not months ahead of time . Contracting is all about relationships , knowing who to call and when to call them . Knowing which subs go deer hunting , fishing , will or wont work weekends , which ones are tied up on longer jobs , etc . I work with 4 electricians , 3 plumbers , 4 HVAC , 5 or 6 framers , if 1 is busy I use another .
On a rehab I have anything that needs to be ordered ready to submit before I settle , I place the order the day of settlement . Same with permits . Subs are already on board and scheduled . Dumpster is delivered and demo starts the first week .
And honestly it boils down to money , thats the bottom line . If you want good contractors out there quickly , pay their price and pay it quickly .
12 months is too long , we can build a 3000 sq ft house ground up in 3 months .