If you’re doing any level of renovation of a house you MUST understand how to create a scope of work.
And if you’re thinking your “investor-friendly” contractor will do that you’re sorely mistaken!
***You can now TEXT "SOW" to 210-794-9898 to the Scope of Work Cheat Sheet 📋
In this episode, I’ll show you the 5 keys 🔑 you need to know about putting together a scope of work and how to execute it.
🔑 Why You NEVER Rely On A Contractor To Create A SOW For You?
A good contractor needs to know HOW to do the job
YOU as the investor needs to know WHAT that job needs to be.
You know this by running comps and seeing what other houses IN THE AREA have done.
Contractors bring their knowledge and experience from doing homes all over the place. But real estate is location-specific.
You may not need to do to one house on one side of town the same work you will do to another.
Neighborhoods are different, buyers are different, and houses are different. Comps will show you this.
🔑 How Does The Process Work?
I recently did a walkthrough of a project we are currently rehabbing.
In this video, you will see what it is that we look at when walking a house. At the end of this, I will also show you what the ACTUAL SOW looked like when completed.
🔑 Creating A SOW
Now that you’ve walked the property and looked at the comps to determine WHAT work must get done you can walk it with your contractor.
You can tell them everything that must get done and see if they have other ideas in a better way.
Now, you create IN WRITING a detailed SOW…
✅ What are they removing?
✅ What are they installing?
✅ Who is responsible for which materials?
✅ When will the draws be made?
✅ How much will be held back till completion?
🚨BE SPECIFIC! BE CLEAR!🚨
🔑Dealing with Change Orders
A Scope Of Work is a breathing Doc
Depending on the size of the project changes will be made as the project moves forward.
This DOESN’T mean you let them get away with everything as a “change” order.
🔑Don’t be Emotional
❌You’re not going to “sue” them so stop saying that!
❌You’re not going to hit them either
❌Don’t be so quick to fire
❌Don’t assume they’re always trying to screw you
✅ Be strategic
✅ Try to resolve all issues or misunderstanding
This is NOT an easy business. Don’t be upset because you have to put in work.
🚀BONUS TIP: Control the SOW
Don’t let them jump around too much. Control the phases. This way if you need to fire them you can get someone to step in.
📽 ✂ Video editing is done by https://www.instagram.com/directordreday/
Texas Real Estate Market Update 2021 [⚡First Quarter]
Here's more on how to invest in real estate:
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🔑You Must Get Your Real Estate License
⚡ Before You Quit Your Job For Real Estate Investing, Watch This!
💰 How to Find Private Money Lenders for Real Estate Investing in 2021
👨🏫 How To Get Free Mentoring
⭐How To Get Started With Flipping
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