BRRRR in a remote market - DIFFICULTIES??
Hey there!
I'm eager to hear from experienced investors who have tackled long-distance BRRRR projects. I recently had a rough experience attempting a BRRRR in a different market from where I reside. Since I don't have any close contacts who use this strategy, I'm seeking insights from others who have successfully done it and are willing to share their knowledge.
Here are a few specific questions I'd love to hear your thoughts on:
1. Payment Structure: What payment structure do you typically use? Do you pay upfront (what percentage?) or break it into sections? If it's broken down, how many sections do you divide it into, and when and how do you make the payments?
2. Contracts and Additions: Do you create contracts for all the tasks that need to be completed? What do you do if something needs to be added during the project? Is it added to the existing contract or handled differently?
3. Ensuring Comprehensive Work: How do you ensure that when something should be done, it encompasses everything necessary for that task? In my example, a "window replacements" work didn't include all the relevant aspects (that I had no idea are needed, I understood that "replacing a window" means replacing it from A to Z). In practice, I was forced to additionally pay for - inside and outside wrapping, trimming sidings, properly fitting the windows, etc. So, when something is quoted, how can I tell, without construction knowledge, that it includes everything that is needed for this item to be fully completed?
4. Keeping Things on Schedule: How do you motivate contractors to adhere to project timelines? Are there any strategies you employ to ensure timely completion?
5. Checking the work: how do you check the contractor's work? Do you send an inspector each time? It seems costly. However, pictures are easy to manipulate and make it very hard to enforce the quality.
Additionally, I welcome any personal experiences or challenges you've encountered during your projects and how you managed to overcome them.
For those who have already completed a few projects, I'd especially appreciate hearing about your initial struggles and how you persevered. Even if everything is going well for you now, I believe everyone faces difficulties at the start, and I'm determined to push through mine.
Looking forward to hearing your valuable insights and advice!