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This month for our Building Blocks Success Series, we interviewed Michael Schneider, a real estate investor, licensed contractor and Realtor with a background in engineering and construction management.In this Building Blocks interview, we talk to Michael about rehabbing and condo conversion, and the ins-and-outs of something that a lot of us dread - hiring contractors and employees.
Because Michael also owns rentals and has experience as a property manager and a project manager, he is able to share some of his best-kept secrets about managing properties that you won't want to miss - particularly in this market.
Excerpt:
Here's just some of what we cover with Mike in this interview:
ForeclosuresMass Members: The audio CD and transcript of this interview is included for free as part of your membership and is on it's way to you in the mail this week.
Non-Members: You can visit our online shop and order your copy of this Building Blocks interview with Michael Schneider.
For awhile, I had my own crew and I just had them employed. And after going through it for a little bit, I decided it didn't make sense from a cost standpoint. By the time I was paying all my extra worker's comp, all my extra liability insurance and benefits and payroll taxes and everything that goes into having employees plus the idea of having to keep them busy, I decided that it didn't really pay for me to continue doing work that way.Michael goes on to share more tips on how to find the right people, work with contractors, and rehab your properties with maximum profit.
And at that point, I really started subbing everything out and literally I started out by bidding out jobs. I would come out and figure out my kind of project schedule and how I was going to need my cash at different points, and I just found various subs to come and work for me. I would never say go with the least expensive sub, because there's usually a reason they're the least expensive. But when you're bidding stuff out, you can really find to get things done at a very cost effective way, and that at the end of the day, if you really work your contracts right and be very specific in the scope of work and how you're going to handle if there's any change in scope, you have a set fee as opposed to a variable if it's a crew...
Here's just some of what we cover with Mike in this interview:
- When to use a condo conversion
- The 3 keys to hiring a good contractor
- Real world tips on how to interview and hire contractors
- What red flags to look out for when hiring
- How to write an effective "scope of work"
- His secret for getting the rehab work you want done right - and at the right price
- How to make sure that you get paid first
- How to separate A, B, and C neighborhoods
- Mike's tips for great networking
ForeclosuresMass Members: The audio CD and transcript of this interview is included for free as part of your membership and is on it's way to you in the mail this week.
Non-Members: You can visit our online shop and order your copy of this Building Blocks interview with Michael Schneider.
We conduct a new Building Blocks interview each month and send out an Audio CD and Transcript of the interview to our members. To find out more about membership, visit: http://www.ForeclosuresMass.com/account/
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