# Entrepreneur this week's post 2 - Mistakes on the way (postman) Hello friends, today I want to talk ...
# Initiated weekPost 2 - Mistakes on the Road (Submitted Post)
Hello friends,
Today I want to talk to you about a topic not many entrepreneurs talk about
It is the challenge that you have during a real estate transaction, especially in Flips, and specifically working with your contractor.
When I was just getting started I made relatively inexpensive flips that needed investment
Of $ 100-120 go and sell for around 160K. You usually only do such renovations
Repairs and renovates the house and does not need some genius and especially talented contractor but more HANDYMAN.
We did find such a contractor, we did 3 renovations with him and it went relatively easy, too
The houses sold out fast and we made a pretty profit. The success made me confident in the contractor and after that I released the bridle a bit.
In the next renovation a strange thing happened, I felt the work was not done, I called the contractor every two days
And I would get answers like tomorrow the next day or three more days…
Then started making excuses for his brother to die and his wife not feeling well…
During this time I still believed and tried to be fair to him but as time went on and the work did not progress I realized that I had a real problem. The truth that one of the strongest fears I had as a starting entrepreneur is to replace the contractor. After all, no contractor likes to get in the middle of someone else's work and even if he agrees then it will cost much more than the original plan and it will kill me the deal. I was in the mindset that even if it took a few more months I would meet the budget, finish the project and then fire the contractor. After a period of about three months, I realized my mistake. If I do not replace the renovation contractor will not end another year and that means many more nights of worry and sleepless. I decided I was going to Atlanta to finish the renovation.
I did travel and saw as I expected the work was not progressing nor the quality I was expecting.
I fired the contractor and ordered an inspection of the house. From the report I realized what I had to do:
1) order an electrician
2) Invite plumber
3) Invite the gutters
Colors)
5) Flooring man renew the hardwood.
6) HANDY MAN for the little things.
I was assisted by an inspector who knew relevant professionals and was there until the job was over.
I managed to finish it all in three weeks and it made clear to me the difference between how the work is done when the developer is on the ground and when he is not present, which led me to add contractor supervision mechanisms and control over the renovation budget.
We were also lucky, a Pakistani guy who lives near the house very much wanted to buy it. He was patient until we finished so that once we were done we could close relatively quickly because he had already started the mortgage process.
In spite of everything we ended up with quite a profit, partly because we bought the house at a really low price and also because of the increase in the value of homes in Atlanta, so that even if we exceeded the fine renovation budget, there was a nice profit for investors and I for a renovation that turned into a simple nightmare project.
Moral, never take your hand off the pulse Choose your staff carefully and don't give too much money to the contractor.
In the picture you see me cleaning the sand that has accumulated on the road, lucky that the immigration police did not come:
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
Thank you! An important post
Benny Nahmani
Where in Atlanta?
Thanks Noam I learned a lot from the post Too bad I didn't read it before I made my mistakes
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You've come out cheap lots of beginners eating obscure sand and losing capital on a basic escort would save
Heh .. good picture!