You just signed for a very lucrative property investment opportunity. The perfect rehab house at a price lower than you expected. It’s in a great neighborhood where fix and flip homes have easily sold before. Buyers are buying. You’re ready to start work — now.
How Do You Get a Rehab House on the Market Fast?
The secret: a job sequencing spreadsheet.
It’s nothing sexy, but it works magic. One recent house flipping project was completed within three weeks — and that included downtime for the holidays — all because the job sequencing spreadsheet was right on target.
What is a Job Sequencing Spreadsheet for House Flipping?
A job sequencing spreadsheet in house flipping lays out all home repairs and rehab work on one spreadsheet. The goal is to see what projects must start first, which ones rely on another to be completed, and what work can be done simultaneously.
The spreadsheet may include:
- Project categories
- Work to be done within each category
- Contractors or companies to complete the necessary work
- Start date and finish date of each project
- Any other necessary fields to effectively see the entire home rehab project
The 4 Steps to Creating the Most Efficient Timeline for a Property Rehab
- Create your job sequencing spreadsheet first. You must have a plan in place before you put a single hole in a wall. All work should be sequenced and scheduled with strict start and finish dates before any work begins. As soon as you sign for a property, start your job sequencing spreadsheet.
- Schedule all contractors ahead of time. Schedule your contractors and projects based on the spreadsheet and stick to the deadlines. “The order is critical, especially if you are using different contractors. Have this plan in place before you start the work,” advises Jeff Johnson, a property investor himself and director of lending at Catalyst Funding, Houston.
- Accurately estimate project timelines. You need to know how long a project will take. You’ll get better at this with experience; however, in the meantime, do your research before the rehab work begins. Turn to your mentors in the real estate and property investing industry for their guidance and advice.
- Hire reliable people. Whether a general contractor or individual contractors, you need to have a reliable network of people you can count on to get the job done as scheduled. When new to house flipping and property investing, take time to network and align yourself with the right wholesalers, financial lenders and contractors. Look for partners who understand property investing and the importance of time management.
Can you keep a real estate project on schedule? See how you rate as a property investor. Take the quiz!
What You Don’t Want to Happen When Flipping a House
Image this: Electrical work done. Drywall up. Paint on. “Did anyone schedule the electrical inspection?” Nope. Oh…. crap.
Inspector arrives, and sure enough, a few adjustments need made behind the newly painted drywall. Out comes the drywall saw. And there goes your project timeline.
This shows just how important job scheduling and job sequencing are when flipping a house or rehabbing a home. When it comes to real estate investing, your profit margin is directly tied to staying on schedule.
The faster you can get the house on the market, the faster and more opportunity you have for profitable earnings. Realize that each day you hold onto a property is costing you something, whether it’s fees, taxes or paying contractors. This extra time can cost you hundreds — maybe even thousands — of dollars a day in lost earnings.
Never underestimate the power of a job sequencing spreadsheet.
Investing in real estate is a business venture that requires quickness, efficiency, and expert guidance. Catalyst Funding is a hard money lender who can help build your real estate investment opportunities.
With a background in fix and flip projects and other property investments, we can provide resources and guidance to help you through the entire process. We strive to be more than a lender! For more information, contact Catalyst Funding online or call us at (832) 648-3626.