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AJ Wong
  • Real Estate Broker
  • Oregon & California Coasts
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287
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How to manage remote remodels or reconstruction?

AJ Wong
  • Real Estate Broker
  • Oregon & California Coasts
Posted Feb 6 2023, 06:54

Having lived in some fairly remote and rural area and currently working on transforming a rental in a foreign land and foreign language I thought I share some of my experiences, results and advice when it comes to trying to manage construction remotely as an absentee or non present property owner or manager. 

My absolute best advice when it comes to managing a remote construction project in which an owner or investor cannot consistently be physically present is to not do it. Seriously. 

The likelihood of laborer's performing on time and on budget without your supervision is very low. Depending on where you are in the world (or relation to it) could dramatically influence the cost, availability and reliability of workers.

My first project was in Port Orford Oregon (the most western point in the continental US) and I was 30 years old with zero construction experience and three hours from the nearest Lowes or Home Depot. Finding reliable workers that were already not reliably working for someone else was a near full time task and without an incredible amount of persistence and good fortune, I would never have been able to turn my initial investment into a positive return or experience.

I found myself posting ads to CL daily, waiting for people not to show up and meeting characters I otherwise would preferred not to meet, all whilst my project dragged on for over a year, and I got in way over my head. 

Fortunately for me I met a contractor also named...Anthony Joseph (you can't make this stuff up.) He was a professional, is a friend and saved my project (and life) while teaching me how to build along with many other life lessons I will forever be indebted for. 

As it relates to investing, I learned that there is always a cost of doing business and good business isn't cheap. 

So if you must or won't be present for construction activity, when you can, which is always, HIRE A PROFESSIONAL. Or in other words..a REAL CONTRACTOR. 

A REAL contractor is a licensed professional, that has a reputable business with referrals, recommendations and a cost that probably won't feel 'cheap.' They will provide a very precise list of materials, costs and timeline as well as show up in a clean or organized vehicle, with quality tools and likely can't get to the job right away because their services are in demand and their schedule is filled with past, current and future satisfied clients.

You'll speak to at least 2-3 people or companies that can do the work, but only one or two that should. 

Imagine spending the amount of time, effort and investment into analyzing and acquiring a property, that you expect to return valuable currency, only to allow just anyone to walk in and perform sacred work? 

Well, it happens..to ALL OF US. I just visited an estate my friends purchased in Nashville. They are extremely successful multi million dollar contractors and designers in Venice Beach. They gutted a 100 year old farm house on 20ish acres about 40 minutes from downtown. Long story short they paid a local at least double and $30k more than the actual work should have cost and it's taken twice as long. 

Why? It's not even that they are "Californians" being taken advantage of in a place they don't know, well it's maybe some of that, but the worker also has to drive an hour each way to get to the property. If he needs materials the job stops. He's a great builder, but he's not a REAL contractor. He doesn't have a reliable five, six and seven man crew that will show up until the task is complete because they have another job next month.

He doesn't have subcontractors for the more specific and intensive tasks that come with a complete remodel. He doesn't have the ability to deliver to your expectations. 

How often does someone over promise and under deliver? And building is HARD. Creating what you want is even harder, and doing so without direct supervision is a greater challenge still. 

The point is that you will pay for what you get. A extremely successful mentor told me once that you can have: time, quality and value but you can't have all three. 

 You might not even get two unless you fully participate and contribute each of those characteristics yourself someway and somehow. Good record keeping is must, I like to use the notes app in my phone. I put the date, cost and description and each week upload it into an excel spreadsheet. I know what I've spent and on what. I try to go further and see how much material cost I have left to purchase. I keep a tab for labor costs and I know who's getting paid for what and what they're getting paid for. 

The workers get a text and call each morning, they send me photos of the tasks of the day or or at completion. We FaceTime. We text, we talk. These relationships are valuable, meaning the results with either create or destroy your investment. Make sure you actually want to deal with the contractor working on your space, and that you would invite them into the space when it's complete. They will be your friends, at least for a while and hopefully beyond. 

The property is a home. It might not be a house, but it's a home for your money, dreams and family even if indirectly. 

Don't let anyone come in with their shoes on or treat the space like they would not treat their own. 

Hire someone that has something to actually gain or lose, in the long run they will save you time, money and anxiety as well as be an immeasurable part of your success or failure. 

I have many stories of construction 'surprises' or unexpected costs from hiring or literally just giving money to unlicensed contractors. Any funny stories that might shake the 'seriousness' of this post that you'd like to share? 

Ok I'll go first, I had a toothless tile man (who I must say did the most phenomenal tile job I have ever seen all by hand with a grinder!) show me what to do when you don't have a functioning bathroom but you've got a bucket..but at least the job took twice as long and cost double :) 

Cheers. 

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