All Forum Posts by: Mike Garrett

It seems like the project process should be faster. Projects go through design, permitting, and construction, but it seems like there should be a way to increase the efficiency of these processes.

https://www.starbuiltconsulting.com/project-manage...

It turns out that there is! By understanding the phases of each of these processes we can increase efficiencies and make sure we are keeping projects on track. Maintaining a project schedule is a matter of knowing the next stages that the project needs to go through and monitoring the project milestones.

https://www.starbuiltconsulting.com/project-manage...

All of this is part of good project management. The better you understand project management the more efficient you can make your projects and the more profitable every project will be. Learn more about project management and the results will pay dividends! https://www.starbuiltconsulting.com/project-manage...

An easy way to make more money in real estate investing is to do more projects. The easiest way to do more projects is to have a system to keep track of where each project is in the various stages of the project process. 

Every construction project moves through phases. These phases are defined by specific criteria and once that criteria is met the project moves to the next phase. Therefore, we can structure projects in a linear way and build a system to track the project as it moves through the phases.

This system is called project management and the more you understand project management the more projects you can have in the pipeline at any given time. To learn more about project management visit https://www.starbuiltconsulting.com/project-manage...

@Mario F. Here is the real problem- the 'Code' does not tell us specifics as to what we can or cannot use. However, it does dictate the expectations and results. In this case the CA Residential Code says (R703.1.1) "The exterior wall envelope shall be designed and constructed in a manner that prevents the accumulation of water within the wall assembly by providing a water-resistant barrier behind the exterior veneer" (https://codes.iccsafe.org/public/document/details/toc/1005)

This section means that as a designer (and contractor) we must ensure that the building envelope can resist water if the exterior cladding (rain-screen) is damaged. This kind of redundancy is important for many reasons (structural, health, longevity, etc.) Next time you know, always have a weather resistive barrier. As far as the contractor that tried to cut the corner- he should pay for the fix and mark him as "not to be used again". 

I agree with @Jeff V. As an architect I have had the same thought, "just maximize the site with a design that works and what developer would not want to buy?" The reality is that different developers are looking for different opportunities in their projects. I do think that there is a huge opportunity in site selection for specific developers, as well as taking over the zoning, land use and building permit pieces (also construction administration). If you find the right investors you should be able to JV and get paid based on your results (end purchase price and share of profit).

I know other architects that just develop the project. Because we have relationships with contractors we can generally negotiate through the design-build process fairly easily, and if you JV with the right contractor the pay can be well worth the time.

Best of luck!

What is the full impact on your flips and rehabs if the construction schedule runs over?

Of course when projects run long there are extra property taxes, insurance payments, and interest on the purchase loan. These can be significant based on the size of the project, but the construction generally contains some creep as well. Contractors with change orders for work not in the original scope can add up in a hurry. Not only that, but many requests for information (RFI's) require owner or design team input which incurs further costs. These financial impacts can really hurt your bottom line, but what about the other stresses?

The emotional turmoil can be great even if the financial impacts are minimal. The stress of not knowing when the project will wrap up and can be brought to the market takes a toll on your sleep and daily life. The potential of another cost with compounding delays in the schedule seems to loom overhead, but what if you could stop the bleeding?

What if you could learn how an architect, who manages many multi-million dollar projects, keeps his projects on schedule? The truth is that learning better project management skills is the key to maintaining schedules, reducing scope creep,and retaining profits.

Learn more at https://www.starbuiltconsulting.com/project-manage...

Pierre, The construction process is not as daunting as it looks at first glance, but some project management education will accelerate your success. The ideal process looks like this:

Find property and determine value adds, discuss with building department whether permits are required and if professional stamps are required to obtain permits, develop schedule for project, hire design team, manage design process, put drawings out to bid for contractors, hire contractor, manage construction process, receive certificate of occupancy.

I have yet to have a project follow this ideal process, but G.C.'s include all materials and labor, overhead and profit, allowances, as well as sales tax, insurance, and the owners part of any performance bonds, and some other costs. Setting up the bid forms so that you can see all these numbers as well as a breakout on each material and sub is important. 

Good project management is important to developing a system to keep the project on track and with in budget! i.m. me if you need more info!

My friend decided he was going to remodel his kitchen. Aside from wanting to eat out for a few weeks, he wanted to remove a couple of columns that appeared to be decorative. Luckily, he consulted me prior to knocking them down as they held up the ceiling and Skylight over his kichen. Upon my arrival I asked him what his plan was for the remodel. We discussed some of the complexities like Electrical, Plumbing, and the hood venting system then I asked him what his project management strategy was, "I'm just winging it! It's not a big project," he said.

At this point he was two weeks in, had no idea he needed a mechanical permit to move the hood, or a plumbing permit to move the sink. He did know that he needed an electrical permit, but had no sense of the timeline that it would take to get it.

We sat down and hashed out a project management plan over the next few hours and discussed how to keep the project on schedule and within budget. Four weeks later he received his final inspection and completed his nice new kitchen however, at the rate he was going this could have easily lasted another 8 weeks, and added another 10 to 15 grand.

Since then we have discussed the value of preparing that plan and everything that could have extended the project and increased the cost.

Want to save time and money? https://www.starbuiltconsulting.com/project-manage...

What is the full impact on your flips and rehabs if the construction schedule runs over?

Of course when projects run long there are extra property taxes, insurance payments, and interest on the purchase loan. These can be significant based on the size of the project, but the construction generally contains some creep as well. Contractors with change orders for work not in the original scope can add up in a hurry. Not only that, but many requests for information (RFI's) require owner or design team input which incurs further costs. These financial impacts can really hurt your bottom line, but what about the other stresses?

The emotional turmoil can be great even if the financial impacts are minimal. The stress of not knowing when the project will wrap up and can be brought to the market takes a toll on your sleep and daily life. The potential of another cost with compounding delays in the schedule seems to loom overhead, but what if you could stop the bleeding?

What if you could learn how an architect, who manages many multi-million dollar projects, keeps his projects on schedule? The truth is that learning better project management skills is the key to maintaining schedules, reducing scope creep,and retaining profits.

Find out more at https://www.starbuiltconsulting.com/project-manage...

Tired of watching your profits walk out on your flips?

Do you think you may be taken advantage of on your buy & hold rehabs? 

There is a simple solution. Learn better project management skills to help take you to the next level in your business. Whether you are flipping houses, building new, or rehabbing your next buy-and-hold you need the skills for project management. the better you understand these skills the more profit you will make on every deal.

Project management is a system that directs, coordinates, and tracks the project team and workflow. Through using a better project management system you can get bigger profits and get your construction completed on schedule. 

Get yourself back in the drivers seat and ensure your profits while providing a better product!

Learn more at https://www.starbuiltconsulting.com/r-e-investors.

Tara, Go talk to the permitting office that has jurisdiction. Tell them your plans and ask what the requirements are for the work. Some jurisdictions allow a contractor to submit plans that entails only the work that requires a permit, others want a designer (architect or engineer). However, like @Brian Ploszay noted, knowing which walls are structural and which are not may require an architectural analysis, architects engineers or competent contractors should be able to provide this for a decent price.