All Forum Posts by: Michael Fung

If your only issue is finding a contractor I would suggest changing your approach from looking for a General Contractor to looking for an experienced Project Manager or Construction Manager.  In truth GCs are not built for rehabbing.  Typically rehabbing requires tight budgets and if a GC is good he/she is already making money working for the general public that is willing to pay higher prices since Mr. and Mrs. Public typically renovate for comfort, enjoyability, convenience, or emergency.  They aren't thinking in terms of real estate investing strategies.  

If you find a PM you are replacing yourself and hiring your partner in the deal.  A good PM understands that the project has to stay within budget, they have to make their own money by bringing the project in ore below budget. Typically they will have established relationships with tradespeople outside of their own guys (unlike a big GC).  

@Michael Fung you fear is "it's too difficult to secure a contractor's time..." How do you face your fears? By taking action. 

How many contractors have you called this week? If it's less than 10 then your fear is baseless. 

If you're serious about this you should be calling contractors, agents and other local investors for recommendations. 

You looked at the property for a reason. Seems like you're looking to get started. Start now. It won't get any better later in 2023.

Hello @Michael Fung! You might want to start with contacting as many contractors as you can and simply asking them if they have any availability to take on a rehab project in the near future. You could give them the square footage and a rough punch list of what will need to be done and see if it is something they would have time for. Start asking your broker, lender and anyone you know in real estate if they have any recommendations. As someone who used to build houses and has done multiple rehabs I would say that taking on a major renovation project as a beginner is something you will not want to jump into alone. However, if you can find a well recommended contractor, honest contractor who can fit you into their schedule in a relatively reasonable time frame and the deal makes sense after your due diligence and underwriting I would say there is no time like the present. You may also want to consider finding another experienced investor who has done similar projects and forming a (well documented by an attorney) partnership. As we all saw a couple years ago situations could change quickly. Personally I'm not a fan of waiting for conditions to become ideal because no matter what they will never be perfect. I am however a proponent of doing thorough research and taking calculated action towards your goals and dreams. Hope this helps a little. Best of luck to you in your future endeavors!

Hi @Michael Fung

Putting the property under contract will give you some time to analyze the property, line up a contractor and financing; and determine whether the deal makes sense for you.  

Ideally you would want to have all your ducks in a row prior to submitting an offer but if you're looking at something in the Boston metro area on the market around $230k, it likely won't last long if there is money to be made.