There are plenty of good reasons to start investing in real estate rentals and other properties. Perhaps one of the best reasons is that many of today’s millionaires still cite real estate as the best investment on the market!
When you’re learning how to get started in real estate investing, you might assume that it’s best to handle everything yourself. While that will certainly allow you to maintain control over every aspect of the process, it’s typically better to entrust other qualified professionals who can help shoulder the load and optimize your returns.
That’s the case when it comes to renovating or rehabbing an investment property. Unless you have substantial experience working as a general contractor yourself, you’ll want to find a qualified professional to provide you with the support you need. Let’s take a closer look at how to handle this issue when you’re investing in rental properties, fix-and-flips, or other properties.
The Best Way to Learn Real Estate Investing is By Building a Strong Team
Real estate investors often think of themselves as jacks of all trades. However, following that logic can leave you a master of none.
Being able to do a little bit of everything can come in handy when you’re in a bind. However, some jobs require true expertise. That’s why it’s a good idea to build a real estate investment team you can count on. The best way to learn real estate investing, after all, is to surround yourself with the right people.
Savvy property investors Identify the areas in which they excel, as well as the ones where their skills and knowledge are lacking. Then, they figure out the best people to fill those gaps and build mutually beneficial (and ongoing) relationships with them. If, for example, you have limited experience with home plumbing or balancing the books, you’ll want to seek out a respected plumbing professional and a CPA to handle those aspects of your real estate investing business.
The same goes for general contractors. Whether you’re investing in real estate rentals or focused on flipping houses for profit, you need someone by your side who can ensure repairs are completed properly and that renovations take place with safety and profitability in mind.
Yes, hiring a general contractor can add a bit more to your renovation budget. However, their expertise will pay off when you rent or sell the property. Contractors can help a real estate investor speed up project timelines, keep overall costs low, and protect their investments!
What Does a General Contractor Do?
So, what does a general contractor do? When finding new properties in new markets with a resource like the Privy platform, you may already know that the property needs work before it can generate revenue for your portfolio. You may even know a couple of professionals who can handle some of this work for you. So why should you hire a general contractor at all?
General contractors are responsible for coordinating and overseeing larger construction or renovation projects. They manage the entire job, bring in professionals to handle the right tasks, and ensure the project is done correctly and on time.
Although you don’t necessarily have to hire a general contractor for your property renovation or rehab, it’s often wise to do so. If you’re working on multiple properties at once, it’s easy to become overwhelmed or confused with what needs to be done for each property. As a result, you might forget to hire someone, order materials, or obtain a permit. What’s more, you might not have a vendor ready to hire for a specific job.
A general contractor can take care of all those details to minimize delays, costs, and frustration. Hiring someone to manage your renovations can be a huge boost to your business and a valuable asset to your real estate investing team.
Don’t DIY When Investing in Real Estate Rentals That Need Work
You don’t have to take our word for it that hiring a general contractor is one of the best things you can do for your business. Here are just a few of the risks you’ll take by not going this route.
Higher Costs
Taking the DIY approach seems like a cost-saving measure . . . at first. However, if you lack the experience, materials, and equipment to do the job yourself, you’ll probably end up spending a lot more than necessary.
Working with a contractor can give you access to better pricing on materials and eliminate costly delays during the renovation process. The right contractor can also help you choose the best materials and follow the right trends to maximize your return on investment. Plus, if you mess up when repairing or renovating yourself, you’ll still have to hire someone to fix it later!
Scheduling Confusion
General contractors know how to do jobs themselves, but they’re also experts in coordinating subcontractors for more specialized tasks. Without a general contractor, you’ll need to take on this role yourself. You’ll have to find these professionals, schedule the jobs, and ensure the work is done properly and on time. That can represent an undue burden for any investor, particularly when investing in multiple properties or a real estate market outside of your hometown.
General Frustration
Working as your own general contractor can quickly turn into a frustrating nightmare. Trying to find the right personnel, get projects completed on time, keep costs low, and juggle all of your other investing responsibilities can become overwhelming. To keep your stress levels low, you’ll want to find a trustworthy contractor who can handle some of these obligations on your behalf.
Find the Right Contractor and Build a Partnership
Not every general contractor has the integrity and know-how to be the right fit for your investment team. Other investors can probably tell you horror stories about hiring bad contractors who don’t deliver on their promises.
When you’re figuring out the best way to learn real estate investing, you’ll want to take their advice to heart. Be sure to vet a contractor before hiring them and keep a close eye on their work. Make sure they have a good system in place for finding the best subcontractors and that they’re making good on their promises to you.
Once you find the best contractor for the job, do everything possible to keep them happy and working with you long-term. Since you’ll probably have a steady stream of work for them, you’ll both benefit from this relationship!
Build Your Real Estate Investing Team With a Good General Contractor
Whether you’re investing in real estate rentals or you’re learning how to get started in real estate investing with fix-and-flips, you’ll want to start by finding great deals through the Privy platform! Then, after you find your next investment project, you’ll need to get it ready for the next step—all while increasing its value.
Partnering with an excellent general contractor is one of the best ways to build your team early in your real estate investing career. With a reliable contractor that understands your preferences, budgets, and goals, you benefit from well-run property rehabs and better returns!
To find your next investment property, learn more about what Privy can do! Our platform eliminates much of the hassle and guesswork involved with analyzing potential properties and learning the best investment strategies for buying and selling properties at the best prices. Reach out soon to find out more about the Privy Advantage!
Put together the best team to support your success! Get a free copy of “Assemble Your Real Estate Investing Team: A Worksheet.”
