In today’s blog, we will discuss the options for real estate investors regarding outsourcing and DIY repair work. To reduce costs and increase profits, it is always advisable that you do as much work as you can, but that would all depend on your personal skills, experience and expertise. Other factors influencing a decision to outsource are time and money. I have put together a presentation on my Youtube channel, so if you want to check it out, head over there. So there is a delicate balance between time, money and skills. You may possess a basic level of skills such as painting and cleaning. Still, the more experienced you get, the more you will learn, especially if you watch contractors work. You will soon pick up some professional tips to make your next property investment easier and faster to repair.
At the start of a repair project, you need to identify how much work you can do and how much work you need to outsource to a professional contractor. Depending on your circumstances, time is an essential factor. If you have many commitments, finding the time to do repair work is not going to be easy, and I would not advise taking shortcuts on repair work as it devalues the property. If you are going to do a job, do it right as you don’t want to be going back to fix a repair, more time and money are spent, so do it right the first time. Your personal situation will determine how much work you can commit to. So review and plan what you will be responsible for in the project to ensure that your property investment is not lying idle and without income. The longer the property is vacant, the more expenses you will incur, so you must identify the time it will take you to do the repair work, and the time it will take a contractor to complete the job. The quality of the finish is also a factor to consider.
When working on fix and flips, you will have to watch your overall spending and doing work yourself will save you money if you possess the skills to do it. So, balancing how much you will do versus outsourcing has to be considered to maximize your profits. It’s always better to outsource specific jobs to professionals and allow specialists to complete the work faster than if you were doing it yourself. You must possess particular skills if you have the time and intend to do the work yourself. If you’re an interior designer, it’s best to stick to that area of the project instead of trying to repair the roof, for example. Of course, you will earn more profits by putting some sweat equity into the project, but this will extend the timeline, and therefore it will eat into your profits, which is an essential factor to consider. However, you can also use this time as a learning experience. I enjoyed painting; demolition is easy because you don’t require a lot of skills for that, and it’s a good workout as well. If you’re not very handy but want to learn, you can take segments of the project and start dabbling around and doing jobs such as painting or repairing a wall, depending on what the property you’re working on requires.
As you progress in your real estate investment journey, you will start building relationships with people who will be part of your real estate team. People like contractors, realtors, lawyers, property managers, accountants, etc. Check out my Youtube video with recommendations on who should be in your dream team. Get out there and make an informed decision on whether you will do the work yourself or hire professionals. Until next time invest wisely.
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