How to flip a house using project managers

With framing subcontractors coming in as scheduled, I all of a sudden realized that the floor that they would be framing over had some very serious issues.


Pounding on my cell phone to find someone... Anyone to help me on literally zero notice, I realized the only person I had that could do it... Was me.


So I dusted off the flooring toolbox, started pulling out the old flooring tools and began ripping up floorboards with my trusty Wonderbar.


Not having done this kind of work in a few years, one of the boards I ripped up broke loose and smashed me square in the jaw.


Dazed and bloodied... And luckily not having to call the emergency crew... I realized something...


When you're first learning how to flip a house, there's lots of different ways to do it.


Especially when it comes to the rehab, there are a number of different paths to take:


Some like to do all the rehab work themselves.

Some don't want to do any of the rehab work themselves.

And some pick the middle path, doing some work and then having others do the rest.


Which way is best?

How to Flip A House - Do It Yourself?


Personally, I don't mind doing some of the rehab work...just as long as I don't have to do all of it.


Unless I feel the overwhelming need to pound a sledgehammer through a few walls in the demo... I'd much rather pay someone else to do it.


Personally, I'd rather spend my time looking for the next deal.


I used to be a flooring guy for years, so if I have to do some of the work on a rehab, I will. And if my experience this past week tells me anything, I think its best to stick to overseeing the rehab work instead of doing the rehab work.


However, when you're learning the basics of how to flip a house, there's no doubt that getting your hands dirty on your first house flip is a great way of really getting to know the business.


Doing at least some of the rehab work yourself to start off isn't a bad idea... But then getting others to do it for you afterward is a great way to scale things... As well as limit potential trips to the Emergency Room.


The Pros and Cons of Hiring a GC to Do Your Flips


In an ideal world, hiring a general contractor (or "GC") to do all your rehab work is the best possible way to go when you're house flipping.


But that's only if you can make the numbers work.


It's certainly nice to have one single point of contact to do all the dirty work for your house flips and rehabs while you're out looking for the next deal or rounding up potential buyers.


This way is far easier on you (and your chin), especially if you're doing it part time or have other real estate deals to tend to.


On the flip side, in many areas of the country it's extremely difficult to get a contractor to do the work for you and still stick to your 70% Rule in hopes of getting the ARV and profit margin to make the deal work.


The issue is that the really good general contractors out there tend to use the same subcontractors and don't bid out each job they do. They have "their guys" who do the subcontracting and they're oftentimes reluctant to try to negotiate with them.


On top of that, remember that a GC adds on 10-20% over what his subcontractors charge him. There's nothing wrong with that because everyone needs to make a profit here.


And believe me, on many jobs, your GC really earns that wage!


A good tip here is if you are dead set on using a specific contractor, you might be able to negotiate a lower management percent or even none at all for a percentage of the profits on the deal. General contractors also can be good sources of potential funding as well.


If you are just learning how to flip a house...everything is negotiable in house flipping!


Should I Do The Rehab Myself?


To answer this question, it's going to depend on a lot of different factors, but the biggest factor of all is you.


For me, it was a logical step to do the rehab on my first few house flips. As I said before, I was in the building trades full time and was used to being on job sites. I love construction and to me, turning a run-down shack into a beautiful place to live is one of the coolest things around.


So I went out and got my state contractor's license, ready to GC my first house flip all on my own.


As I look back on it, despite the challenges, it was great experience. Primarily because I could see firsthand how the whole operation runs. This on the job experience has really helped me in my house flipping career - so much so that when I hired the job out in the future, I knew exactly how to set the rules and how to follow the whole house flipping process.


There's nothing like firsthand experience to teach you that.


In House Flipping...Know Thyself


Do you absolutely need to do it this way?


I don't think so. But think of general contracting your first house flip as a bit of "on the job training". It's not necessary - but it's surely an experience you'll refer back to many times in your house flipping and real estate investing career.


If you have a full time job and are rehabbing one house at a time, then you may very well have the time, but this largely depends on the kind of job you have as well.


If you have a fair amount of flexibility with your job hours, then perhaps it may work.


If you're tied to a desk all day and an hour commute away from the geographic area you do your flip in, then perhaps not.


However, only you can answer that.


Do understand this though; in order to effectively manage any real estate investing rehab, you will have to be available to manage the sub-contractors by phone, early in the mornings or in the evenings. And if you have other things on your plate, like a job, a wife, kids... This gets tiresome.


There will be times when you'll need to go on site and if you are on a business trip a thousand miles away at the time, it might be tough to pull this off.


For me, my flooring business allowed me the flexibility to stop in on the job site and check on things whenever I needed so I was fortunate enough to have the flexibility.


You on the other hand, may not.


Ideally, if you have enough money saved up to quit your day job and become a full time Real Estate Investor then this will be much easier for you to manage. Plus at that point, it IS your job!


So if you're not sure if being the general contractor is right for you, then you may want to try it to see if you like it.


But if you'd rather play it a bit safer, then there is another choice that may be right for you.


Behind Door Number 3: The Project Manager


Short of hiring a full blown general contractor, you could use a project manager instead. We've found this to be a very effective way to rehab house flips, especially where hiring a GC is cost prohibitive.


For example, you could approach a smaller, hands-on type of licensed carpenter who has experience working with other subcontractors. You could then negotiate a fee based on his involvement in the project.


I've found carpenters and other subs very receptive to this arrangement. On top of the money they make doing the other work on the property, he's getting paid an override on how well he manages others.


Like I said before, everything is negotiable in real estate investing and house flipping, so be creative here. And remember it's about "win-win".


For example, you could do any number of these financial arrangements:


    Flat Fee: Simple enough. Pay a flat fee to oversee the job. No real creativity here.


    Partnership: Work out a partnership or an equity stake in the property. This is a very creative way to handle things. I wouldn't suggest this strategy on your first flip, but its one to consider.


    Percentage: Pay a percentage of the overall job that may be smaller than a typical general contractors cut. If he's good, this could really save you.


    Flat Fee and Performance Bonus: Pay the project manager a project management fee of around $2,000 and then assign bonuses for meeting timelines and budgets. The bonuses really keep the project manager motivated because he has a skin in the game. You pay some money upfront, but even more when they hit performance metrics.


Whatever you do though, do your best to establish a fee that works for the both of you. The fee you pay is largely dependent on your location and the going rates that project managers are typically paid.


You can get this kind of information from your real estate investment mentors, from other real estate investors in the area, or at your local REIA meetings.


Where to Find Project Managers


We've found that finding someone young, hungry and motivated is the best profile for success. It may differ for you, but these are the kind of guys (it's usually guys here ladies) who will put in the extra hours and get things moving in the right direction. Young, ambitious and smart is always a good profile to look for.


There may be some ideal project manager candidates in our backyard at technical colleges. These newly graduated students are typically hungry and have a good background that could be ideal for your project. In some cases, if you find a good one and your budget allows it, put them on your payroll and keep them working for you full time.


More often than not, freshly minted students for what they may lack in "real world experience" may more than make up for it with all the background knowledge from school in addition to the computer and technical knowledge for running budgets and keeping things humming smoothly.


Of course, before you go and hire a full time person to manage your flips, make sure you're in the position to afford it as well as have enough projects going on to keep him or her busy on a regular basis.


So whether you do the rehab on your own, hire a general contractor or get a project manager, you can do well and make money any of these three ways.


Author: Mike LaCava


Mike's Website: http://www.houseflippingschool.com

How to plan a memorable multigenerational vacation

(BPT) - Whether over the river or through the woods, families across the U.S. are planning to travel during the holidays. In a world of well-traveled toddlers, worldly teens and active seniors, multigenerational travel is growing and for good reason: everyone enjoys a vacation together while creating unforgettable memories.

"Multigenerational family travel is character building," says Julie Henning, writer and contributor for destination and activity website LiveLifeLocal.com. "In exploring new places with the people who already know your strengths and flaws - and love you anyway - you can come together in a way that otherwise wouldn't happen at a holiday or reunion."

Planning a trip for the whole family doesn't have to be intimidating. With a few simple tips, it's easy to coordinate a vacation everyone will enjoy:

1. Keep a "group" mindset

Whether you're orchestrating an elaborate vacation where the whole group flies across the country, or you're road-tripping, picking up the grandparents along the way, keep the lines of communication open.

"Planning a multigenerational trip is a little bit like planning a wedding," says Henning. "If you can remember the trip is not just about you, but a time of celebration for the entire family, chances are you'll have much fonder memories."

2. Plan together

"If you have more than one 'planner' in the group, involve them all in creating the agenda as much as possible," advises Henning. This will help ensure everyone provides input and the responsibilities are spread between multiple people.

Online travel sites make it easy to plan multigenerational trips, even if families live in different locations. LiveLifeLocal.com, created by Safeco Insurance, allows users to discover unique destinations, read reviews and map out their travel route at no cost. You can research and save preferred activities to a "collection" on your online vacation portfolio, which can then be shared with your family via email, Facebook or Twitter, making planning a snap.

3. Communicate budgets

It's important to be open about your vacation budget and expectations to avoid any awkward moments and unintended expenses once you've arrived at your destination. Be sure to talk about who is paying for what, or if it will be split equally. With so many people involved, the cost of multigenerational vacations can add up quickly, and no one wants to be surprised by going over-budget.

4. Pack and prepare

Preparing to leave is one of the most difficult parts of multigenerational travel. Each age group will need different things - your toddler needs diapers and her favorite blanket, your teen needs his favorite mobile device and charger, and the grandparents need to make sure they pack any necessary medications. Make lists and start packing early to eliminate the last-minute rush.

If you're driving, make sure the car gets a tune-up before you leave. If you're meeting up with the grandparents to use their RV, remind them to have any necessary maintenance done before you arrive. Properly winterizing and preparing RVs, boats and other vehicles is important for a headache-free multigenerational trip ... and just good sense overall. Check with your insurance company to see if towing is covered under your plan in case the need ever arises.

5. Cherish meal time

"In many families, mealtime is when everyone comes together to share their days and reconnect," says Henning. "On a trip, this can be at a restaurant, picnic at the beach, or from the comforts of a vacation home. Make an effort to enjoy regional food, shop at the local farmers market, or cook the meal your family enjoys most."

6. Expect the unexpected

Remember that nothing is perfect, including your vacation. Be patient and understand flexibility will go a long way toward ensuring a smooth, stress-free vacation.

"Leave time for something to go wrong," advises Henning. "Camera batteries run out, room keys disappear, and bathroom breaks happen. Keep in mind that everyone needs some down time, even from the people they love most."

Make this holiday one to remember by planning a multigenerational trip now. These tips will help you create a vacation itinerary everyone will love, helping to forge new bonds and traditions while creating memories to last a lifetime.

Courtesy of BPT

How to turn must-do home improvements into things of beauty

When it comes to home improvement, you can spend money in two basic ways: on things that make your home look better and things that make it function better. Under the first category, you'll find all the things you want to do, like replacing narrow casement windows with a lovely bay window. Under the second, falls all the things you must do, like replacing those drafty windows with something more energy-efficient.

When "want to" and "have to" meet, they create the opportunity to make a smart buying decision - and choose an upgrade that will look good and improve the livability of your home. The key to making smart home improvement decisions is to recognize these opportunities and take full advantage of them.

Here are a few "have to" improvements that have the potential to turn into a good-looking, energy-efficient, enjoyment-enhancing "want to."

Replacing the hot water heater.

You probably don't care what a new hot water heater looks like sitting in your garage or basement - or wherever it resides in your home. But the right replacement water heater can help your house achieve a lovely shade of green. High energy-efficiency water heaters can help reduce energy usage, thereby trimming your energy bills and your home's environmental impact. Solar water heating systems take the beauty a step further by using the power of the sun, collected through low-profile solar panels on the roof, to heat water - at a monthly savings that's about 80 percent less than the cost of traditional heaters.

Getting some light in here.

Do you really need a bunch of scientific studies to tell you that a home filled with natural light just feels better? Probably not. Illuminating your home with natural light is a smart buying decision on multiple levels. First, you don't pay to power the sun. Second, natural light delivers a host of mood-enhancing benefits. If you have the wall space, by all means add some windows.

But for rooms where a window is impossible (like a powder room) or where you don't want to sacrifice privacy (like a master bathroom) a tubular skylight is a good alternative. Some are easy enough to install that a seasoned do-it-yourselfer could accomplish the task. They cost less than traditional skylights and bring natural light to hard-to-light areas like closets, hallways and other small spaces.

Getting some air in here.

Just as natural sun is good for your mood, ventilation can be good for your health. An Energy Star qualified venting skylight is a great way to passively vent stale, moist air from inside your home, especially from baths and kitchens. While some skylights are "fixed," those that do open can be controlled by a remote to open when you want fresh air and close when you want to retain warmth. They can also close automatically in case of rain. In addition, they introduce free light into your home. Adding blinds - also remote-controlled - can help you better control the amount of sun a skylight admits into your home. And blinds are not just functional - you can get them in colors and patterns to complement your decor while increasing energy efficiency. Compared to other venting solutions, a skylight is a relatively low-cost, great-looking way to address ventilation issues while adding drama to a space. Log on to www.veluxusa.com to learn more about skylights.

When one door opens ...

Beat up, weathered garage and front doors not only look bad, they can be a source of air leaks that make your heating, ventilation and cooling system work harder. Exterior doors aren't something you buy every day, but they can have a big impact on how your home looks and on its energy efficiency. They can definitely be a smart buying decision if you opt for doors that not only look good, but are also highly rated for energy efficiency. If you're not sure how to choose, look online, where you'll find guides for buying garage doors and front doors.

Courtesy of BPT

Smart, stylish renovations for any age

(BPT) - Most Americans over 50 want to stay in their home as they age, but few are making the renovations they need to ensure easy and comfortable living for years to come.

In fact, 80 percent of people older than 50 say they would prefer to remain in their home indefinitely, according to an AARP survey. The Hartford and MIT Age Labs found that while 96 percent of baby boomers are aware of the changes they could make to their current home to make it more comfortable as they grow older, only 26 percent have made such modifications.

Consider some of the following functional, yet beautiful, touches that help make a home safer and more comfortable for residents of all ages.

* Hardwood floors

Replacing carpet with hardwood floors can help accommodate difficulties ranging from respiratory problems to decreased mobility. Unlike carpet, hardwood flooring doesn't trap dust, pollen or other particles that cause problems for those with allergies and respiratory issues. Wheelchairs and other mobility equipment can glide more easily over a hard surface, and hardwood floors require far less maintenance. Homeowners can choose from a variety of hardwood flooring options that meet their needs and fit their budget at retailers such as Lumber Liquidators, North America's largest specialty hardwood flooring retailer.

* New furniture

Changing out furniture can make a huge difference in the comfort and style of a home. Enhance maneuverability by allowing ample room between furnishings, and by picking accessible pieces such as counter-height dining tables and chairs. Likewise, it's easier to sit in and stand from firmer sofas and chairs than deeper, softer options.

* Kitchen updates

Kitchen shelves that pull out make utensils, pots and pans, and ingredients much more accessible, and do not require a kitchen remodel. A wide range of products and kits enable homeowners to easily install sliding shelves themselves, or they can hire a contractor to do the job. Also, consider swapping out knobs for handles on cabinets and drawers to make them more accessible and easier to use.

* More lighting

Make sure all areas of your property - inside and outside - are well lit. Pendant lamps, inset ceiling lights and track lighting help illuminate a room from above, preventing glare that can cause temporary blindness. Opt for switches to turn lights on and off, and locate them at the entrances of each room. If a home's wiring isn't set up this way, the homeowner may need to contact an electrician.

As we age, we want to remain as independent as possible, which includes being able to stay in our own home for as long as possible. With a few functional changes, homeowners can create a beautiful space now that can enable them to live more comfortably later.

Courtesy of BPT

Selling your home? Make it more appealing to buyers

(BPT) - You've made the decision to sell your home - now you want to position yourself for a quick and successful sale. What's the most important thing you can do to entice buyers?

"The most important thing you can do is to make your home look welcoming when people drive by," says Kimber Powell, Realtor and sales manager for Coldwell Banker Mid-America Group in Altoona, Iowa.

"You want to invite them in. Make sure your front door looks nice. Trim and landscape your yard. Accent your entryway with a new door mat and pots of flowers that contrast with the color of your home," she says.

Follow these tips to position your house for a successful sale:

Enhance curb appeal

A well-maintained house appeals to more buyers and can sell faster and may sell for a higher price, according to Realtor.com.

Maximize your home's exterior appearance. Keep the lawn and landscaping edged, cut and watered. Inspect doors, windows, trim, foundation and siding for peeling paint. Repaint and replace items as needed. Clean out gutters and replace missing caulk and shingles.

Declutter inside

Make your home look bigger by removing clutter and storing personal items and extra furniture before prospective buyers arrive. Make repairs where needed, Powell advises.

"Repairs are ongoing maintenance needs that show your home has been well-cared-for and kept up-to-date," she says. "Most potential buyers want turn-key homes that are easy to move into."

Repaint dingy or stained walls with a neutral shade of paint. Repair cracks or holes in walls, ceilings, tile and woodwork. Replace broken items and consider updating worn-out cabinet knobs, dated curtains and battered bath and kitchen hardware.

Show lifestyle possibilities

Create a lifestyle story to help buyers envision themselves living in your home. Have a small kitchen but a big deck? Focus on outdoor entertaining by adding lights, comfy cushions and showcasing grilling areas, Powell recommends. If you love your neighborhood, highlight a front porch with wicker furniture and window boxes.

"You want to show buyers the ways they can use the entire home and yard," Powell says. "If you don't have outdoor furniture or decorations, work with a stager to borrow those items." Or consider borrowing items from friends or family to get your home staged for sale.

Highlight quality brands

If your home features or you've replaced items with high-quality brands, like Pella Windows and Doors, include their names in your home's sell sheet, Powell says.

"People are very conscious of name brands and high-quality products. They also want to know about energy-saving benefits and warranties that may transfer to them," she says.

Windows, door replacement

Projects like window and door replacements can recoup more than 70 percent of their cost at resale, according to the National Association of Realtors and Remodeling magazine's Remodeling Cost vs. Value Report.

Whether you're preparing your home to sell, or updating it to live in longer, Pella offers low-maintenance, energy-efficient vinyl, wood, and fiberglass replacement windows and doors that can help improve your home's curb appeal, and help lower utility bills.

"Stylish exterior doors that look like wood, with the minimal maintenance of fiberglass, are popular replacement options," says Kathy Krafka Harkema, Pella spokesperson. "Plus, fiberglass offers exceptional energy efficiency, weather resistance and outstanding durability."

Pella fiberglass entry doors offer many prefinished options, as well as custom colors so you can design a door that truly reflects your home's style.

Courtesy of BPT

Replacing ceiling lights is easy and affordable

Changing your ceiling lights is a great way to improve the look and feel of your space and you have more options than ever before in terms of selection and price. Most projects will only take a little bit of your time, even if you're a DIY novice, and they really do make a big impact on the level of comfort people will experience in your home.


Changing out an old ceiling light to a new one is easy and only takes seconds. Underneath the cover, at the base of the lamp will be a couple of screws that hold it to the ceiling. After turning off power to the room, unscrew the unit and detach the wires from it. Once you do this, you can simply reattach the new ceiling light, restore the power and enjoy a whole new effect in the room. It really is that simple for most installations, so the only thing to seriously consider is the look you want your light to give off. 


One option is to also install a dimmer switch. This is also a simple procedure, and the switch is very inexpensive and can be found in almost any lighting accessory retail location as well as online at your favorite dealer. This will allow you to control the brightness of your ceiling lights, and is perfect for areas such as the dining room, study or even the bedroom.


Chandeliers are a great way to accentuate rooms that have high ceilings, but they can also be small enough to fit over any existing fixture. Whether you are looking to use a chandelier as the focal centerpiece in an entryway or a small accessory for the dining room, there are plenty of models to choose from, and the designs can range from contemporary to classical. The only thing to remember is that your ceiling will need to support the weight of the chandelier, so it is very important to know what those limits are before installing a new piece. You may need to reinforce the mounts or consider an alternative that is less heavy.


If you do install a chandelier in a room it's also worth considering placing a large mirror on one wall, this will give the impression of greater space in the room and will accentuate the impact of the chandelier.


Ceiling fans are also exceptionally beautiful and can add a lot to a room, especially kitchens and bedrooms. Most come with or without light fixtures, and you have the option of choosing a simple fan or one with a light attachment. A double benefit of having circulating air as well as light is that it can make a stuffy or crowded room much more pleasant to be in. Just as easy to install as replacement ceiling lights, it can be a simple weekend project that most people can do in about an hour. Finding the right one will depend on need, space and personal taste.


Whether looking for ceiling lights or fans, there is a wide selection to choose from for prices you won't find in traditional stores. A trusted online retailer should be a one stop resource for not only products, but for service and coaching as well. If you have a project, you can find a lighting accessory retailer that can help you to transform any space into an inviting place. Just give yourself some extra time for your order to be shipped.


Styles don't last forever, and changing ceiling lights is easier and less expensive than most people think. From simply replacing a cover to switching to a whole new light entirely, there are more options than ever to transform that dull room into a luminescent space that is warm, inviting and comfortable. Whether you want to install ceiling fans or chandelier lights, there are many design options to choose from, and knowing what the effect is that you want to create will help you to make satisfying choices.


by: Kathryn Dawson 

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