When it comes to house flipping, it pays to have a plan.
That’s why it’s so important to put together a Scope of Work (SOW) that is as accurate and detailed as possible. It will be the blueprint that you and all of your contractors will follow as your project progresses. Having a solid SOW will also allow your lender to more easily assess the profitability of your project.
Here at NavCap, we believe so strongly in the importance of an actionable SOW that we have created a SOW template, downloadable for FREE right from our website.
Click the link below for access:
https://www.gonavcap.com/estimate-your-scope-of-work
Why A Statement Of Work Is Key
And as important as it is to estimate your repair budget by line item, it is equally important to include a high-level summary of the project. This summary is called the Statement of Work and is located near the top of the SOW template.
What Is A Statement of Work?
A good Statement of Work should include an overview of the repair work to be done such as the planned demolition work, structural improvements to be made, and the expected exit strategy. Providing a short blurb that gives a birds eye view of the project will allow NavCap to better understand the general scope and estimated schedule of repairs.
Additionally, the Statement of Work provides the appraiser your vision for the property and a detailed list of all the work you will complete. This allows the appraiser to choose comparable sales that best match your finished product. This is extremely important because it gives you the most accurate After Repair Value for your property which is exactly what you want!
Still have questions about your SOW? Or maybe you have the SOW figured out and are looking for competitive financing for your next project. Either way, NavCap is happy to help. Put our experienced team to work for you. Give us a call at 888.444.3160 or email us at info@gonavcap.com.