For Matthew Nair, the key to any relationship begins with open lines of communication. And that is never more true than in the relationship between a contractor and a real estate investor. The investor has secured the property and, in most cases, has a vision of what needs to physically be done to the house to bring it to market and generate profits. Some deals require minimal work, namely, fresh paint, new carpeting and some small, cosmetic modifications. Others demand much more work, and that could be anything from ripping up floors to complete kitchen and bathroom renovations.
Nair Invest LLC President Matthew Nair said that the wheels can come off a deal at any point, don’t let a strained relationship with your contractor be one of them.
“It happens all too frequently,”
“However, things change. Sometimes you end up way over budget and way over your time frame because instead of the perfect relationship you thought you would have with your contractor, it seems you are working more against each other rather than towards a common goal. What is the problem? Communication. Lack of communication, misunderstood communication, poor communication, no communication. See a pattern?”
Matthew Nair suggests that to avoid these pitfalls that can eat up profits, investors should draft, and have both parties sign, a contractors agreement. First, Matthew Nair advises that the agreement eliminates problems as they relate to quality of workmanship and quality of materials. Both parties, Matthew Nair suggests, need to get key components on paper. This can be everything from specific materials and their costs, to time frames and deadlines.
“Investors often fail to convey their desires in sufficient detail,” said Nair Invest LLC President Matthew Nair. “Rehabbers can speak a different language that is unfamiliar to contractors, and then they become disappointed when the scope and quality of work isn’t what they expected.
“As an investor, you need to state, precisely, if you want the $29 tub surround, or the high-quality $129 tub surround. Materials are only half of the equation when it comes to a quality finished product. Quality workmanship is the other half.”
Investors can come out successful on both fronts, simply by creating a detailed checklist and ensuring that both parties understand it and agree to it.
To see more of Nair Invest LLC’s President Matthew Nair and his investing advice, visit http://www.nairinvest.com, or follow Nair Invest on Facebook and Twitter.
Nair Invest LLC is a full-service real estate investment company. President Matthew Nair specializes in fix and flips, as well as buy and holds. Nair Invest LLC also provides in-house