Oct. 15, 2020

3 Ways to Keep Your Rehab Under Control


...instead of over budget and over time. 

There are 6 areas in your house flipping business that need to be optimized for the most efficient business. 

In this episode, we're diving into the Rehabbing area of your business and the 3 ways to keep this part efficient and effective. 

The great news is that it's all FIXABLE! Just have to know where to focus your fixing efforts first.

GOODIES

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4. Continue the house flipping conversation in our free Women Flipping Houses Facebook group

Transcript

Unknown Speaker  0:01  
You're listening to the flip houses like a girl podcast where we educate, empower and celebrate everyday women who are facing their fears, juggling family and business, embracing their awesomeness and wholeheartedly chasing their dream of flipping houses. Each episode delivers the honest to goodness tools, tips and strategies you can implement today to get closer to your first or next successful house flip. Here's your spiky haired breakfast taco loving host house flipping coach, Debbie DeBerry.

Unknown Speaker  0:39  
Hey, how are you today? I hope that, like I say, whatever you're up to today, I hope you're having an easy one. And you know what, let's take one little minute to talk about the importance of self care. All right, when our cups are empty, we cannot fill the cups of everyone around us. And if you're anything like me, that role of filling everyone else's cups falls on you. Right? You've got to work in self care, whatever that looks like to you. To me, it looks like walks around my neighborhood. And it looks like busting my butt on the peloton, with Robin kicking my tail. That is what self care looks like to me. Doesn't mean that's what it has to look like for you. Whatever it looks like for you. Just do it. Okay. All right. Before we get into it, let's do a listener shout out, because this one I totally missed a few months ago, and I apologize. So this is by Hayley TX. She says worth it super informative, inspiring and thoughtful episodes on everything you need to get started flipping houses. Thank you for taking the time to leave a review, I really appreciate it. It happens to be that the podcasts with the most reviews are the podcasts that get put in front of people when they do searches. And I would love to inspire just one more woman out there to chase this wild and crazy dream they have of loving old houses back to life. Regardless of what everyone around her tells her as possible. She can come here in this little bubble of ours and hear that it is entirely possible. Alright. Okay, let's continue the conversation we've been having about the six key areas in your house flipping business that could potentially be sources of stress, or resistance, or just holding you back, right? Okay, those six areas just to recap, let's see if I can do it without pausing. Foundation, I almost messed up the foundation of your business, targeting, attracting, converting, rehabbing and selling. Alright, so we have talked about the other four in previous videos. And today, we're on the fifth area which is rehabbing. Okay, so this is one of my favorite things to talk about. I think it's one of the biggest areas where people struggle, I think particularly women do we feel like maybe we don't have a voice, right? Like, maybe we're gonna get run over by contractors. That's what I hear often. How do I not get taken advantage of? Well, there are lots and lots of ways to really nail down the rehabbing part of your business. So it is one of the areas that in my business is super efficient, and I focus on it a lot. My timelines are short, right? I'm in and out of projects quickly. Time is money, right? Every single day, more carrying costs add up. I'm managing the project appropriately. Usually, I've had some really nice learning lessons, which I've shared, either with women inside my coaching program or with you guys too, on some of these videos. But here's the thing. This part does not have to feel as daunting. It doesn't have to feel as intimidating. It doesn't have to hold you back as much as I hear that. It does or Right. So let's talk about the three kind of signs or places to look at within the rehabbing part of your business to determine whether or not you need some work here. My hunch is, you probably do.

Unknown Speaker  5:22  
I even have to come back and tweak this often to like, it's just part of the business right now. It's smooth. But there's always a new day. Okay, so the first part, we'll talk about this contractors, man, contractors get a really bad rep. And here's the thing. While there are some bad people out there that take your money and run, maybe they shouldn't have gotten your money in the first place. Right? So there are two parties involved there. Yeah, the other person did some shady, it's not always inevitable, that you're gonna get screwed. There are many ways to prevent getting screwed, okay, and having your contractors, first of all, building those relationships and really treating them like humans, right, vetting them. Okay. And I have talked many times before, about, you know, your trade off, if you're just going for the cheapest labor possible, you're trading off some things. Okay, so there are lots of ways to navigate the can't contractor piece. So one of the things that I see, many beginners, and even people who have flipped, several houses have screwed up on this one thing that will save you so much emotional energy, so much financial energy, and so much stress, if you would just use freaking contracts to protect yourself, alright, it is really simple. You've got to use the contracts. All right, go write everything down, you've got to have consequences, you have to have it very clearly laid out. And you have to enforce it. Alright. But the biggest ways to prevent getting screwed by a contractor is by actually having the right contracts in place, and it's not their contracts. It's contracts you're providing, right? Do you have to have an independent contractor agreement with them? Okay, that's just protecting yourself from having to pay payroll taxes, if the government says, this looks more like an employee. All right, that's just one thing you need, there are multiple things you need in place there. So what I'm saying is, you can protect yourself very well, with the right documents and contracts in place. Okay, cool. All right. Whoo, this is a touchy one. So the second place that could potentially be a source of stress, a source of inefficiency is in who's managing the project, who's managing the contractor. So even if you hire a GC, who's managing, right, the timeline and the budget, they're managing it, somebody's got to manage the contractor. And that's you. If it's not you, it's your business partner. It's somebody you hire to manage them, but somebody has to be managing them. And that right, there is a really huge source. And a really big, huge source. It's a huge source of stress. Yeah. And it's a it can lead to a lot of problems with the contractor. Right? So if you or somebody you've hired is not properly managing the contractor, and the project and the timeline, things are gonna get wonky. I mean, that's just what happens. So, if it's not going to be you hire somebody who's going to do it, okay. Work on leadership skills, you're the CEO of this business right. and manage the project lead your team number three, follow through okay. And this is in regard to the contracts, the agreements, the payment plan, the

Unknown Speaker  9:45  
consequences that you have lined, lined out, right. So, contract says, If this happens, then this happens right? If This Then next, okay. So if the contractor says I'm showing up, then you can terminate the contract, if the contract or whatever it is, right? If the contractor goes over a certain number of days, then there's a deduction there, right? Whatever it is, you have to follow through on what is laid out in the contract. That's one of the biggest issues I see. Even if somebody has a contract in place, which most of the time people aren't. People aren't using contracts, they're using whatever contract the contractor gets them, right. So it's the follow through, when you lay out the rules, the guidelines and the consequences of those guidelines, getting broken, those agreements getting broken, you have to then be willing to follow through on the consequences that you set out from the beginning. Alright, so you set the expectations, set the consequences and follow through on them. Right? Those are three huge areas in the rehabbing party for your business, that if you can nail these down, like 90% of the time, your business, you're going to love your business, and you're not going to say contractor issues. I don't say contractor issues because frankly, the one time I had a contractor issue, it wasn't a contractor issue. It was me that totally screwed all that up. I didn't have the contracts in place. I didn't have I wasn't managing it properly. I set them up to fail. Alright, and in doing so, I failed. Okay? So learn by my mistakes. You get all these three things in a row. All right. All right. If you're sick of being on the sideline, and not taking action because you're scared, and you don't want to do this alone, you don't have to. Alright, get on my waitlist, because the women inside my program. First of all, the community is unbeatable. The place is awesome. All right, I guarantee you you've never experienced anything like it. Secondly, we are closing on deals left and right. We have so many first flips happening right now. Yes, in the middle of a pandemic right now. And they're smart flips and they're doing good in their communities. If you want to be part of something really incredible, we would love to have you if you resonate with my message if you resonate with my vibe, I know that you're going to love the other women inside the community. Alright, go to first flip done right comm get on the waitlist, and you'll have first dibs on the next opening. Because I give so much personal attention to people inside my community. I don't let a ton of people join at once. So it's on a rolling ongoing basis. Alright, so put your name on that list. You will be notified within a week or two of your chance to join. All right, first flip dunrite.com until next time, go out there flip houses like a girl leave people in places better than you find them and make it a great day. Bye, y'all.