Scope of Work for rehabbing a house or an apartment

Rehabbing an Apartment or a House

(Scope of Work at the bottom in a link)

Here are the steps to rehabbing a house or an apartment building:

1. Have a comprehensive scope of work to bid out to different GCs (attached, delete what's not needed)

2. Have different GCs bid on the SAME scope of work so you can compare apples to apples. Do not let them create the scope of work, include yours in the contract.

3. Avoid getting ahead in payments and try to be a bit behind where the GC is in terms of the work.

4. Do Not allow your GC to choose finishes, you should pick anything you see or touch.

5. Create a "rehab recipe" that specifies what you want, with pictures and prices, and where to buy the finishes.

6. Provide the rehab recipe to your GC or purchase yourself and accumulate airline miles.

The GC you pick can either be the cause of all your problems or the solution to all your problems.

How to find a good GC: Do a "GC Creep". Observe successful investors/developers in your market.

Find out who the successful people are in your market that are rehabbing and visit their sites and meet their GCs.

You can research the LLC they use to purchase properties and see what else they own, and if they recently purchased a property, it's likely they're in the rehab stage.

Find a GC that works with investors, rather than retail clients. GCs that work with investors expect to do multiple deals and will charge less than a retail GC that focuses on marketing for retail clients and making more per job.

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