Fixer-Uppers: Project Management 101

oal in real estate investing should be to make thepass inspection and conform to local building codes.
most profit in the least amount of time using asAre you sure enough about your skills to meet
little of your money as possible. Buyingthese requirements? You're usually better off to
fixer-uppers and renovating them for resale is anstart with a professional subcontractor rather
excellent way to increase your profits. But howthan trying it yourself and then paying to have it
do you avoid becoming a renovator and losingdone over.
sight of your investment goals?Hire Qualified Contractors
You must focus on becoming a project manager.When hiring the pros to do your renovation work,
Project management puts you in the position ofask for references and check them out. Ask
making sure the renovation gets done instead ofyourself if you can develop a good working
doing it yourself. Project management forrelationship with the contractor. Don't rely on a
fixer-uppers will include finding subcontractors,handshake for your business agreement. Draw up
getting quotes and scheduling the work.a document that spells out what's expected from
Know What You're Getting Intoboth parties.
Your agreement with the seller should includeCreate a Work Schedule
access to the property so you can completeTo renovate your fixer-upper most efficiently,
inspections and uncover any hidden problems. It'syou'll need to put together a work schedule for
best if your agreement allows you to re-negotiatethe subcontractors. Keep in mind that some jobs
the price or even nix the deal if major problemsneed to be done before others. Remember,
are discovered.subcontractors don't always show up at the time
Be Flexibleor date you've scheduled. Make sure you allow for
When starting any fixer-upper renovation project,this so that one late worker doesn't wreck the
realize that the process may not go as smoothlyentire project.
as you expect. There will always be unplannedDon't enter into a renovation project without a
delays and unanticipated obstacles. Keep yourbudget and a set of priorities. Hire qualified
schedule flexible, allow for some extra time, butsubcontractors and let them do their job. Make
work to minimize any delays that do occur.sure the work proceeds according to schedule,
Let the Professionals Workbut expect the unexpected. Efficient project
It may seem like doing the work yourself willmanagement of your fixer-upper renovation will
save money. This may be true if you're workingpay off in extra profits when you get ready to
on your own home. But when you are renovatingsell.
a fixer-upper for resale, everything you do must