Janie Coffey investor, general contractor and realtor appeared on the show to provide us some great tips to make our rehab projects go smoothly.

Rule Number 1:
Always include a contingency for both time and money. Every project has surprises. If you plan for them you will be in this business longer.

Rule Number 2:
Order your materials with the help of your subs. If someone else is doing the work and you are ordering the material make sure you are getting what you are supposed to.

Rule Number 3:
Create a schedule. Plan out how the job will go before you start it.

Rule Number 4:
Work with licensed and insured subcontractors. Check up on them and make sure their licenses are current for the work they are doing. Get a current copy of their liability and worker’s comp insurance from their insurance company.

Rule Number 5:
Don’t pay ahead on your subs. It’s ok to pay them but don’t pay them so much that you have given them more than the work that is done. Alway s hold out 10% until the job is completed to your satisfaction.

Rule Number 6:
Include a deadline for your subcontractors. Penalize them if they are behind and reward them if they get done early.

Rule Number 7:
Decide how you are going to finish out your project (flooring, countertops, etc) before you start the project to make sure everything fits.

Rule Number 8:
Don’t do work without permits. Get permits for all of the work that needs to be completed. It is illegal and not worth the liability to d o it any other way.

Rule Number 9:
Get a lien release from all of your subcontractors.

Rule Number 10:
Create a close-out book. Provide the new homeowners with all of the details about the paint, carpet and flooring used in case they need touch up. I nclude appliance manuals also.

For more information about real estate investing and how to succeed in your investing endeavors make sure to visit www.getrealrei.com The audio version of this episode is availab le at Get Real ( http://getrealrei.com/blog/?p=63 ) Contact us This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

This information is provided as a service and should not be considered complete instructions for performing a home rehabilitation project. It is paramount that you be educated and acquire competent counsel prior to beginning any real estate investment project.