When investor, Shawn Tiberio, got this 4 bedroom 4 1/2 bathroom 6,200+ sqft Birmingham, AL home under contract, he realized it was going to take a bit more work to bring it to market than his average rehab project.
In this video, Shawn goes through the process of preparing for a project of this size to ensure that it is done safely and in a timely manner. You never want to jump into a rehab project, no matter how large or small, without first completing this very important step.
Before beginning any rehab project, Shawn and his team make notes about the property that are used to create a comprehensive Scope of Work (SOW). This Scope of Work is used to get multiple bids on the project and manage the rehab process.
Those notes come into play again at this stage. Shawn gathers all the notes and ideas that he, his business partner, and interior designer jotted down to generate the Scope of Work (SOW) for the property and they meet with the interior designer and contractors in the area who know the market. At this point, they identify what is expected of a home in this size and price range.
It's extremely important to know what buyers are looking for in the market and price range of the property that you are rehabbing to avoid making unnecessary (and expensive) improvements that you may not get back. Similarly, you don't want to miss any improvements that buyers are expecting, which can lead to longer hold times.
After putting together the SOW, Shawn used Realeflow's Moby feature to blast out and notify his contractor list of a Contractor's Open House at the property. He met with multiple contractors who came to see the property, review the SOW, and submit their bids.
Hosting a Contractor Open House is a great way to bring together several contractors at once, not only to see the project, but also to help create a little bit of friendly competition between them.
For more information on effectively working with contractors, check out Shawn's article on how to find and manage great contractors here.
Above and Beyond Properties
San Diego, CA
Terms used in this video:
- Scope of Work
Features mentioned in this video:
Key take aways:
- Don't just rush into rehab projects.
- Plan for success.
- Don't be afraid to bring in outside experts.
- Make sure your improvements are what buyers are looking for.
- Use the repair estimator to start the planning process.
- Use Moby to blast out updates to contractors and market the property.
- Host a contractor open house to get more competitive bids.