A knowledgeable contractor’s help can enormously help organize a flipping project and provide insight into what is possible with a property. A contractor may guide real estate investors with what type of changes they want to make and if they will be helpful or damaging. Additionally, a contractor will help investors oversee the home renovation project and keep the process moving. This is especially helpful if the house flip is a side job rather than a primary occupation. The contractor should also help real estate investors with financial planning. They should be able to tell how long the job will take, when the draws are needed, and how much the material and labor will cost the investor.
Furthermore, a contractor should also manage getting permits and inform how long the permitting process will take. They will also know what work can be done without permits and which jobs will require them.
Using a contractor will cost more money than doing the project themselves, but it will save real estate investors time and money throughout the project. While owning the property, investors will pay several monthly costs, including real estate taxes, utilities, insurance, and maintenance. On top of the monthly interest from the loan, these costs all add up to significant numbers that can be the difference between the project’s success or failure. A job completed correctly is less likely fail an inspection and incur fines. Hiring an organized contractor will keep the real estate project moving, effectively reducing costs over the project period.
Ultimately, investors can split the work with a contractor. They might be good at painting walls but not good at laying tile. Real estate investors might consider splitting the work with a contractor. Explain from the beginning what they can do and what they expect from the contractor. Real estate investor should make sure they have that in writing and spell out each party’s responsibilities clearly, so there are no misunderstandings.
Investor Loan Source, a private money lending company, provides high-quality investment property loans to private real estate investors at the lowest costs possible. Our process for providing real estate investors with private lending is unique. We place emphasis on the hard asset and value of the collateral (property) and less on the borrower. Our asset-based real estate investment loan model means we can provide more money lending to more investors than is available from standard bank loan models. At Investor Loan Source, providing real estate investors hard money loans is our business; it’s all we do. We offer several business real estate loans products designed to serve a variety of investors and property profiles, including private money lending for properties to sell on owner finance.