Congratulations. You've lined up a reputable contractor and are ready to plow ahead with your real estate investment project. But there are a few things you should know before you get started. Put some time in before the repairs begin to avoid miscommunication or delays later.
Ask For References
Once you’ve found a good contractor (or contractors, hopefully), ask for information about their past projects, either completed or, better yet, still in progress. Reach out to the homeowners to gauge their satisfaction level and, if possible, stop by to assess the level of workmanship. We suggest getting multiple references to get a good sense of the type and quality of work completed.
Use Your SOW To Bid The Work
When it comes to home renovation, there is no shortage of choices involving materials and supplies. Make it easy to compare multiple bids by specifying the scope of work upfront. To help you we have created a FREE customizable SOW template downloadable from our website. By taking the time to specify each line item required for the job, contractors know exactly what is expected, and you know exactly what it will cost.
Work Out Financing
Most rehab lenders, including NavCap, use draws to distribute funding for a project over time. As a practical matter, draws done in arrears allow the lender to reimburse the investor for the cost of work as it is completed rather than fronting the cost of renovations or construction. Your contractor should be amenable to this arrangement as it helps keep the project moving forward and on budget. It’s a good thing to discuss right up front.
Feel free to reach out to us here at NavCap to discuss your next project or find out more about our flexible lending programs including fix and flip, rental (DSCR), bridge, and new construction. We are here to help. Reach us at email@example.com or call our office at call/text 888.444.3160.