who wish to market and sell their own property is the closing process. It’s im- perative to remain in control of the deal flow and buyer-seller relationship. Also, pay careful attention to your contract documents and their requirements. TENANTS If you are a rental property investor, it’s no great revelation that working with tenants sometimes can be one of the more frustrating relationships of the real estate business. As a self-manager, inves- tors should realize when your schedule doesn’t always align with theirs—and the owner-investor should set the param- eters of the relationship. For example, the first sight of minor pests during the early spring months doesn’t qualify as an “emergency,” now does it? How an investor responds to tenant issues will set the tone for the duration of the tenancy. Be sure to address problems as they arise, but don’t bend to a tenant’s every request. Our philosophy is to consistently remain “fair but firm.” As you begin to take this approach to tenant relationships, you will realize a difference
in both your work-life balance and the tenants’ perception of your role as the property owner and manager.
• Request to see the contractor’s license prior to beginning work • Require a Certificate of Insurance (COI)—commercial general liability insurance and worker’s compensa- tion, at a minimum • Avoid payment in advance (under most circumstances) • Avoid payment by the hour (get a fixed price for the job) • Get it in writing—define the price, scope of work, work schedule, change order process, payment schedule and plan for debris remov
CONTRACTORS At some point in your real estate in- vesting career, you will be faced with the decision of hiring a contractor. Whether it’s flipping that first house or resolving a property maintenance request, the contractor relationship will impact your bottom line. Hiring the wrong contractors can make this business of real estate prac- tically unbearable. While the full scale of the owner-contractor relationship is beyond the scope of this column, here are some quick tips to help ensure your next contractor relationship is a success: • Ask fellow investors for recom- mendations but perform your own research (such as AngiesList.com, Porch.com, Houzz.com, etc.) • Get at least three estimates and request itemized pricing • Remember, the lowest price isn’t always the best price
> Continued to :: PG 136
Kelly and Chris Edwards have been active real estate investors in Raleigh, N.C., since 2002. They are Managing Principals of Edwards Capital Partners, a real estate investment firmwith a focus on Private Capital Trust Deed investments. Contact them by visiting www.EdwardsCapitalPartners.com or www.TheEdwardsCompanies.com.
thinkrealty . com / mag | 31
Made with FlippingBook Online document