How do you balance your crew on multiple flips?

Question

We use a GC and a crew for the flips that we renovate.  We are looking at running multiple projects at a time and I wanted to see how you all balance your crew between the projects.

I have seen many posts of people working on multiple projects with 1-2 crews but it's hard to picture it with the structure I have in place now.  For the people that are doing multiple projects are you hiring subs and have a PM in place or are you actually using a crew to handle the full rehab?

Derek T. · Answer

Thanks  for the response.   Yes we use licensed trade people for HVAC,  plumbing and electrical however we normally have our crew working at the same time as the trade people.

So you only have one trade or crew in at a time and you balance them that way through projects? So for instance in our project now we had the plumber doing the rough in,  the HVAC guy installing some new duct work while the crew was demoing an addition and adding siding,  etc.  If you had multiple projects you would stretch them out and have them come in at different times/days?

Joe Delia · Answer

Hardly use different subs for each job, but i do have a few that I can rely on.  I prefer one over another but at the same time im never SOL if one is on a big job or on vacation or in jail.

Brian Mathews · Answer

It actually works against you if you have a bunch of people doing work for you.  Loyalty means a lot.  If you aren't loyal to your subs, then when you need them most, you take a backseat.  Develop a relationship with them, let them know ahead of time that you will need their services in 2 weeks or whatever timeframe and give them a scope of the work you will require, that way they can plan.   If you are a good customer that doesn't act like a mad man and pay promptly, you will get front of the line service.  If you use different subs on every job.  They will become skeptical that you may or may not use them, so if something else comes up, you move to the back of the line when you need them most.  Then you could get stuck with somebody who does sub par work cause you're desperate.   I'm an hvac contractor and I will jump through hoops to get a job done if you and I have a good relationship and I don't have to wait weeks to get paid for a job I do for you.

Joe Delia · Answer

This is why i'm always working to bring on more people and always looking for references.  Having several HVAC, Plumbing, Tile, and on guys is crucial.  Keep networking and keep finding more people to add to your team.

Brian Mathews · Answer

I would handle any demo work and framing done before anybody comes in to do any rough in work.  That way they know what they have to work around.  Otherwise your licensed trades will have to make multiple trips to move stuff around in case a wall went where a duct is or a pipe has to be moved because you moved framing, costing you more money.  Then let the electricians come in and hang their fixtures, but not run wire yet, that way nobody has to move anything later.  Then come the plumbers and hvac guys so they work together running ducts and pipe, since that stuff is rigid.  Now the electricans can come back and run wire since its flexible and can run around anthing that might be in the attic area.  It's easier to run a wire around a pipe than pipe around a wire.  Then it's insulation, sheetrock, texturing, cabinets, painting, flooring and finish out.  Nothing is more irritating and slows your job down more than a bunch of guys working on top of each other,  a few is ok.  Otherwise they get pissed off and screw things up or just get fed up and leave, ultimately costing you time and money.

Brian Mathews · Answer

I think its the same with any contractor that does multiple jobs.  You have to plan and organize if you use a crew.  The work is done in stages in any trade and your crew will have specialties or things that they are good at.  Hopefully you have a good mix of talent, not a bunch of guys good at one thing.  Not sure if you have to use licensed plumbers, hvac and electrical.  In Texas you are supposed too and if caught not using licensed guys, your job could get shut down.   But no licensing required for painters, carpenters, tile guys, etc...    You can have one specialty working on one house and another on another house.  Otherwise everybody gets in each others way and you will lose time if they're tripping over each other.  If you have a GC, that would be his job to manage your project.

Michael Noto · Answer

This is a great topic for a thread.  I am in the same position in that I would like to have more than one flip in progress if the situation presents itself.  Interested to hear what some of the seasoned investors have to say about this.