Fix and Flips are a favorite of the real estate investor and a perfect fit for the hard money loan. Simply put, buying a property that needs a facelift then quickly getting renovations done and back on the market is a great way to quickly increase wealth. Leveraging a hard money loan makes this scenario viable for many. A hard money loan funds quickly and leverages the value of the property as collateral on the loan. Using a hard money loan, an investor can grab a property quickly and then, with a good crew of contractors, renovate and sell it again, all within a matter of weeks.
By quickly turning the flip around, the investor maximizes his investment. Things begin to be less profitable if the renovations take much longer than anticipated. Weather is one of the variables that investors can’t control, and winter weather and rainy seasons can painfully slow down construction projects. Summertime is a great time to take advantage of clear skies and get renovations done, but during the hottest days of summer, it can be challenging to keep crews motivated and productive!
Getting your crews to start extra early is a very effective way to maximize productivity during hot weather. It may take some cajoling, and there will be some grumbles, but the crew that shows up at 6 a.m. can have their eight-hour day completed by 2:30 in the afternoon, including a lunch break. That leaves the hottest time of the day free for them to relax, and you get your day’s work done as well.
Of course, recognizing your crews’ hard work with rewards is always appreciated. Bring breakfast tacos for those early starts once in awhile. Swing by with a cooler of cold sodas around lunch time on occasion. Motivating your contractors and crews monetarily also works amazingly well. A cash bonus for completing a job before schedule will earn you loyal contractors and crew. If you prefer to stay away from cash expenditures, $25 gift cards from Walmart or the grocery store handed out to the crew at week’s end will be well received and are great for accounting and tax tracking purposes.
The investor with a happy team of contractors and crew workers is the investor who will be flipping more houses more quickly than the guy who fails to recognize their efforts and difficulties. Keep your cool in the summer heat and keep your projects on schedule!