looking for advice

[Ally Shroff]

Hello Community,

I have found a really nice property to do my first fix and flip in Cleveland. 

Question: Does my licensed GC tell me what needs to be fixed, repaired or gutted? or I have heard of something called the POS Inspection? Apparently the inspection reports is something that the GC follows and does the repair work so the property can get occupancy permits. Is that true?

Am a but confused so I do apologize if my questions are a bit off?

Basically I just want to know the step by step process after I have decided on number worthy property to flip?

Thank you in advance to all those who help

Ally

[Doug Smith]

Be VERY careful with GC's giving you their "Scope of Work". We have 2 different loan clients that are in the midst of sueing GCs that underbid the jobs, fudged numbers, overcharged, etc. One of them actually sent the client bills to pay for other jobs they were doing. Finding a good, fair contractor that will be a long-term trusted member of your team is very, very hard. I've also personally invested since 2007. I started off with small, cosmetic flips and now do ground-up "urban infill" construction deals, so I've done this for a while. I can tell you that you have to watch them like hawks. You'll make most of your mistakes in the first handful of deals you do. People will try to take advantage of your lack of experience. A lot of lenders have stopped lending to those with little to no experience. You might even want to consider partnering with an experienced investor that you trust that can help find trustworthy resources and show you the ropes. In the Tampa market, there is someone that has a design degree that can be hired to help guide investors through a project. I wish I knew someone in Ohio that does the same thing for you. PM your email address to me and I can email you the Scope of Work spreadsheet that we give to our loan customers to help them lists out the work that needs to be done. It doesn't give you steps, but it might help a bit. I wish you well in your investment journeys.