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Tips to Consider When Putting Together a Complete Scope of Work for Your Next Flip

Posted by Ken Meyer on Tue, Nov 04, 2014

fix and flip loansFlipping a house successfully requires a very detailed scope of work. Some people choose to do a very general scope to determine if the flip will be profitable or if the house is a money pit. However, the problem with an overly general scope is that there are a lot of variables. Contractors may give you estimated quotes that turn out to be much higher when they find bigger problems upon closer inspection. You might think a roof replacement is all you need, only to find out later that the gutters and chimney need work as well. Take the extra time to examine the details, and check out these tips about how to put together a complete scope of work for your next flip:

Take a lot of pictures

Here's where you'll be thankful for digital cameras. You need to take pictures of every square inch of your property. Now you can go home and look through everything without wasting time driving back and forth. Mark areas where you need to do further inspection and do it all at once.

Measure, measure, measure

Be sure to take measurements of cabinets, doorways, windows, and bathroom spaces, such as tubs, sinks, and toilets.

Don't overlook small details

Remember to check small details, such as grout, trim, wiring, and ductwork. These are items that contractors need to know ahead of time; otherwise you'll end up paying more for the work.

Communicate with contractors

Your detailed scope of work will allow you to develop the right relationship with your contractors. Use this opportunity to clearly communicate your expectations and lay some ground rules. If you expect your contractor and their workers to leave the job site clean and tidy at the end of the work day, tell them this upfront. A clean work site will allow you to take pictures clearly detailing the progress that is being made on your property.

Take the time to double-check your property and be sure your inspector does the same. A well-seasoned inspector can help you identify problems you might not see on your own. Creating a detailed scope of work is the only way to avoid costly repairs that will damage the profit from your next flip. Feel free to contact us with any questions regarding flipping your property.

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