This is where most of the landlords go wrong.Let's not get this out of proportion. Project management is not rocket science and you don't need a degree in astro physics to do it. I've been doing it already and I'm not even trained so it can't be that difficult otherwise I wouldn't have done it myself.
It's usual to have one side put in the money and the other put in skills and labourSo you can pull in £60,000-£100,000 without risking your own money. Go for it.
The idea would be to have a main source of income from refurbishing houses and selling themRight, let me get this straight:
- Your main source of income will be flipping houses.
- Rather than have to employ lots of different tradesmen on an ad-hoc basis, you would rather emply a skilled general builder full time to do most of the jobs that currently you have to organise lots of different tradesmen to do.
- You currently project manage flipping houses, as well as taking on some of the less skilled work.
- You would also like to take on smaller jobs for private clients that would keep your employee busy when there isn't enough work on the houses you are flipping.
- If you also want your skilled general builder to project manage, what will you be doing?
- Why do you need a general builder to do that for you?
I plan to do about 10 - 20 per year.@pongoman out of interest, how many houses do you do in a year and how much on average are you making?
I do have all my own building trade accounts/trade pricesThis is where most of the landlords go wrong.
They think they're saving money by managing the projects themselves but...
1. Usually they don't have access to trade prices for quality material
I've not been doing it long enough to call myself experienced.If you are a good project manager you can earn that p.a. without investing or risking your capital
Just depends how quickly they can be sold10 to 20 is a pretty vague plan. Sounds like you’ve only done one this year and have tied up some of your capital in it
Obviously you've looked closely at how much you expect to turn over in a year, and how much profit you expect to make (after you've paid yourself a wage, and used some of the income to put down as a deposit on the next, more profitable property, etc etc)
Let's not get this out of proportion. Project management is not rocket science and you don't need a degree in astro physics to do it. I've been doing it already and I'm not even trained so it can't be that difficult otherwise I wouldn't have done it myself.
All of this applies to builders, but you're a property developer.Quality pays it's own dividend, quality means happy customers, happy customers mean word of mouth and word of mouth is the best marketing in the world and there's nothing else as good. Quality is a virtuous circle, you just have to be a fundamentally honest person, you need to be able to charge for the quality work and explain to the customer why you are charging more than someone else and be proud of your quality and be proud of your higher price.
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