August 8, 2021
How Great Property Management Increases Profits
Getting profitable single family home investment deals is obviously important.
But managing the home renovation process well can increase profits.
Here’s how this works.
Experience Matters When Managing Renovation Projects
When it comes to managing single family home renovation projects, there are 3 big reasons why experience matters.
Scope of Work. Prior to acquisition (during the due diligence period), the scope of work is developed. Costs for labor, material, holding, and a budget for surprises is determined during the due diligence period.
WATCH: Here’s a video I made walking through a house during the early state of the scope of work.
Work Flow. The renovation of the property begins immediately at acquisition with dumpsters dropped off on-site and crews doing demo work. Every item in the scope of work is planned out in a logical order with vendors and trades scheduled in advance until the final punch out items are completed.
Sales Marketing. For me, marketing the property for sale begins right away. In fact, the marketing plan for the resale of the renovated home is in place during the due diligence period and is included in the management of the project. The listing goes live the day the professional photographs are delivered.
Managing any one of the above poorly increases risk and kills profits. Great management of the project reduces risk by turning the deal faster and increases the possibility of exceeding the minimal profit target.
Call, text, or email John Marion for more info or to discuss opportunities to participate in one of the Alpha Dog Capital projects.