ExpandYour Contractor Network THREE POWERFUL INVESTOR TRICKS TO KNOW THIS SUMMER.
ust like you wouldn't put all your capital into one prop- erty, you shouldn't rely on just one contractor. Smaller investors often have a "guy" for doing HVAC, hot water heaters, and other maintenance proj- ects, but relying on just one contrac- tor can bottleneck projects and put investors in a precarious position. A likely scenario: you're investing in several properties over the summer that you hope to turn around quickly. One or more properties have serious HVAC or other "behind-the-wall" is- sues, and you need your guy, but he's booked solid for two months. Enlisting several contractors you can trust can streamline your maintenance needs and remove unnecessary roadblocks for smooth transactions. You can also save by leveraging manufacturers. One contractor sim- ply can't offer the bargaining power of a network. A contractor may have a good relationship with a distribu- tor, but you're still paying wholesale price and the contractor's mark-up on top of it. Leveraging a relationship with a contractor network that's linked
directly to an equipment manufac- turer can provide some significant savings, to the tune of 20-30 per- cent, on equipment. The less you spend on equipment, the bigger your bottom line. SIMPLIFY THINGS YOU DON'T NEED TO MANAGE Most investors know that dealing with multiple contractors can be challenging. Now you're not just focusing on the financials, but also scheduling inspections, maintenance appointments, billing, and invoices. It can get overwhelming fast. The fewer points of contact, and the less management of those points of contact you have, the more time you have to dedicate to evaluat- ing your assets, looking for the best deal, and focusing on the next task, instead of getting bogged down with one property. This is especially is true for larger investors with 10 or more proper- ties, some of which are in different markets. Simplifying the manage- ment of contractors and other minor management tasks can free up significant time.
PLAN AHEAD One of the least exciting challeng- es in investing is finding out, after an acquisition, that you have an unexpected expense hidden behind the walls. Building systems such as HVAC, plumbing, and electrical can become very costly, very quickly. If you're just working on one or two properties, it's typically fairly easy to keep track of what needs to be done, but when you start to scale to upwards of 10 properties, suddenly you can get bogged down with multiple expenses you simply did not anticipate. Planning ahead with pre-invest- ment asset inspections can be a small added cost that could produce savings down the road. •
Motili is a Think Realty Supplier providing turnkey HVAC and Plumbing services to real estate investors nationwide. Learn more at thinkrealty.com/motili.
10 | think realty housing news report :: june / july 2019
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