All Forum Posts by: Michael Braswell

The challenge: Record-high labor and material costs, a sluggish resale market, and a shortage of skilled labor are squeezing spreads.

The opportunity: Tighten operations around three levers—Cost, Time, and Revenue—while de-risking each flip with disciplined underwriting and execution.

1) Cost: Tame Labor & Materials Without Gutting Quality

Value-engineer the scope

• Prioritize visible ROI items: paint, flooring, lighting, curb appeal, kitchens/baths (surface updates > layout changes).
• Replace, don’t relocate: keep plumbing and electrical in place when possible.
• Use finish tiers (Economy / Mid / Premium) per neighborhood comp set; avoid over-improvement.

Lock pricing early

• Get three-bid packages per trade with identical scopes, photos, and SKUs.
• Negotiate 30–60 day price locks on materials; ask for bulk-buy or “contractor pack” discounts.
• Use allowances (e.g., $2.50/sf flooring) with pre-approved SKU lists to control change orders.

Build a dependable labor bench

• Maintain a preferred-vendor roster (primary + backup) for each trade.
• Offer fast pay terms (e.g., net-7 on verified milestones) in exchange for pricing and priority.
• Test small jobs first; promote trades to your A-list only after on-time, on-budget performance twice.

Standardize to reduce waste

• Create repeatable finish schedules (same trim profile, faucet line, paint palette) so crews work faster and leftovers are reusable.
• Pre-kit jobs: one delivery per room (box includes all hardware, fixtures, and consumables).

Contracting discipline

• Use fixed-scope, milestone-based contracts with:
• Progress draws tied to inspections/photos
• No deposit or minimal mobilization
• Lien waivers at each draw
• Daily liquidated damages for missed deadlines (after grace period)
• Written change order policy with price + time impact before work proceeds

2) Time: Move Faster to Reduce Carry and Risk

Front-load planning

• Walk the property with all key trades before closing; finalize scope, bids, and schedule ahead of day 1.
• Pull permits early; choose scopes that avoid structural or major MEP reroutes when timelines matter.

Sequencing & overlap

• Schedule parallel workstreams (e.g., exterior/landscaping while interior demo proceeds).
• Use a Gantt chart (even a simple spreadsheet) to track trade start/finish, dependencies, and buffers.

Daily control

• 15-minute stand-up with GC or project lead each morning (photos + punch list).
• Two inspections/week: one quality, one progress vs. schedule.
• Keep critical spares on hand (breakers, valves, GFCIs, common trim, extra boxes of flooring).

Tech + templates

• Simple tools (Google Drive + shared photo folders, or apps like Buildertrend/Jobber) for scope sheets, punch lists, and photo proof.
• Use QR codes in rooms linking to the finish schedule for fewer “what goes here?” delays.

Timeline benchmarks (typical cosmetic flip)

• Close to demo start: 48–72 hrs
• Demo: 3–5 days
• Roughs + inspections: 5–10 days
• Finishes + punch: 10–14 days
• Total on-site: 4–6 weeks (heavy rehabs longer, keep under 4 months)  

3) Revenue: Sell Smart in a Slower Market

Underwrite conservatively

• ARV from adjusted comps within 0.5 miles and 90 days when possible; stress-test with –3% to –7% price drift.
• Use days-on-market (DOM) tiers to model carry (Base / +15 days / +30 days).

Renovate to the buyer, not your taste

• Design for the median buyer in your submarket. Neutral palettes, durable finishes, and a few standout features (statement light, tiled niche, upgraded hardware) to photograph well.

Pricing & launch

• Price at or slightly below the comp trend to spark day-1 traffic.
• Professional photos + video + floor plan are non-negotiable.
• Go live Thursday morning; host strong opening weekend events.

Targeted incentives

• Offer closing cost credits or rate buydowns via preferred lenders rather than large list-price cuts.
• Pre-list inspection + repair report on the counter to build trust and reduce renegotiations.

Fallback exits

• Pre-approve a wholetail path (light cleanup, then MLS as-is) if construction risk rises.
• Keep a BRRRR option: refinance to a DSCR rental if DOM stretches and cash flow pencils.
• Lease-option or corporate housing as temporary monetization if needed.

Hard money lenders do not care about your DTI but do want to know if you have the down payment, closing costs, and 25% of rehab budget to get started. We look primarily at the property and the numbers to determine if it is a good deal. 90% of underwriting is based on the property not the borrower. Use this equation to evaluate how much to offer on a property:

Max offer = After Repair Value x 70% - Rehab Budget

Do you homework on comps to get a good idea on the ARV. Find 3 solid comps that have sold as close to the house as possible within the last 3-6 months.

Set a realistic rehab budget (ask other investors how much does it cost them to renovate a house based on price per sq ft).

Plug in the ARV and rehab budget and DO NOT offer more than this number. You make money on the purchase not on the sell of the property. A lender will fund your deal if you know your numbers.

Apply for a hard money loan that allows you to purchase, rehab, and resell or rent the property. The interest rate and cost is higher than conventional loans but the requirements are less and the closing process is faster.  The loan will be in your business name and won't be reported to credit agencies, which is huge. No W-2s, pay stubs, or tax returns are required. 90% of underwriting is based on the property not the borrower.   Reply if you want more info on a hard money loan.

Another way to raise capital is to leverage your credit (680+ score required) and apply for unsecured loans, which have a 1 - 5 year repayment period.  Check out www.fundingyourbiz.com to learn more. 

100% Financing for Purchase and Rehab

Up to 70% ARV

Min 600 credit score

4 Points, 13% Interest

12 month interest only

Only required out of pocket cost is for loan origination fees and settlement charges

Available in GA, FL, AL, SC, NC, TN, MO, IL, VA, and WI

Call 770-854-2194 or email [email protected] for more details or to apply.

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