Thursday, April 16, 2020

Charge the Contractor #81



https://streetsmartinvestor.com/testimonials/charge-the-contractor-81/

101 Street Smart Cash Flow Accelerators

Lou Brown has been buying, selling and holding property for 40 years and you are about to discover what a lot of so called gurus are missing.

* How to buy all the property you want without ever visiting a single bank or needing to qualify for a loan…

* How to have a buyer or renter before you even buy property…

* How to have them already pay you money before you sold them anything…

These are exactly the kinds of deals he does day in and day out. Most 'investors' are getting it wrong. It's not about the property, it's about the buyer. Buying right and buying cheap is what you'll do after you have the buyer.

---------------------------------------------------------

Hi, it's Lou Brown. I'm back with another of my 101 cash
flow accelerators to help you be more successful in your real estate business.
In this section we've been talking about renovations and boy I tell you what,
I've done a bunch of those. I've done a whole subdivisions and it's been really
interesting to learn about working with contractors and getting them to behave
the way you want them to. "Oh, Behave!" , as Austin Powers would say
and they won't unless you penalize them. Well in my contract it's called
independent contractor services agreement. It's available in volume 11
renovations under StreetSmartInvestor.com. One of the things I have is a
contract for the contractor and an important thing to have in there is
penalties when they don't complete on time. So typically we go through a list
of things that need to be done. I provide that to them.
It's a contractor. It's actually all the scope of works
and it depends on which contractor I'm talking to, whether it is the general
contractor or it's plumbing, heating and air conditioning, electrical roofing,
painting, carpentry, general. Each one of those have their own scope of work
and then attached to that scope of work is a terms and conditions or mice call
it rules of engagement and one of the things that we will do before we start
the renovation and before I pay them any money is we will enter into an
independent contractor services agreement. In that agreement we have agreed to
a certain deadline, a certain date that by all means the property will complete.
Now what happens is there's a penalty after that date and so there's a daily
penalty or cost for them exceeding the deadline. Well, why is that? You have to
understand you have expenses each and every day. You have your cost of funds,
you have your insurance and you have your property taxes, plus you have your
opportunity cost. That house hasn't been sold if the contractor's delaying that
project, it is an age old situation that people run into dealing with
contractors. It's very important that you have a deadline in there and you have
a penalty on a per day basis. I've built that into my independent contractor
services agreement. Hopefully that has been helpful to you. Like it. Love it.
Share it, and I'll see you soon. Yeah, baby.
 If you want to listen to our Podcast, click here:
Visit:

No comments: