Hi, I'm Lou Brown and I'm back with another of my 101 cash
flow accelerators.
We're talking about renovations in this segment. And one
of the things that's always very very important is do your homework in advance
of bringing in any contractors, go through the property yourself. Make a list
of the items that need to be done room by room and trade by trade. Now trade by
trade. So one of the things that I've created in my system call renovations is
that separated what's called scope of work by trade. So you should have a
separate scope of work for plumbing, heating and air conditioning, electrical
roofing, carpentry general and painting. So those six different trades
typically done by different people. You're giving them a different list of
things, things to do. Now what I did is break it down room by room so that
you're actually walking through the room, walking through the project,
determining by tip offs that I have on each one of the different rooms of
things to look at.
And then when you mark those things down, you'd be as
specific as possible. I remember this one time on the scope of work for
carpentry general. I had this contractor and he decided he was going to put up
three and a half inch crown molding in the living room and I had right on the
scope of work, five and a quarter inch crown molding and you know, he called me
for the inspection so that I would pay him. And I looked immediately walked in
and I went, okay, this does not impress me. And he says, what's wrong? And I
said, a crown molding. And he said, yeah, I put it up. I said, I know you put
up three and a half inch and this is supposed to be five and a quarter inch .
And he says, well that's too bad for you. This is what I've put up. I said, no,
hold on, let's take a look at the contract.
And sure enough, right there on the contract it says five
and a quarter inch crown molding. Well, he had to rip out all that crown
molding, install new crown molding on his own, take it before I would pay. It's
so important that you get these things nailed down. Per trade, per room. I've
got that all broken down for you in my renovation system. Volume 11,
renovations. You can go to StreetSmartInvestor.com and look, click on tools
and then click on renovations. It'll give you all the information and hopefully
this has been of help to you. That's what I want to do. I want to help you be
successful and highly profitable in this great business of real estate
investing.
If you like this, love this, share this and do subscribe.
Thanks so much for joining me. My name is Lou Brown. See you soon. Yeah, baby!
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