“Time is Money” – never is that more true than in a real estate investor’s flip project. Each project property is running a dollar meter every day until it sells to a homebuyer. Beware of these pitfalls that can cause project delays and drain your cash on your carrying costs, including utilities, insurance, interest on borrowed funds, etc.

• Do-It-Yourself work, followed by professional do-over’s
  New investors are told this until their ears bleed – and still some will overestimate their ability to save a few bucks with a DIY. If you can’t do it to the same standard as an expert professional, don’t do it … or else do it while you budget the time and money to have a pro do it over (some will charge extra if you worked on it first).

• Overdoing upgrades
  From cabinets to windows, replacing major features too often eats up time and budget while providing little return. Consider a quality refurbishment of what’s there with an eye on the clock and the budget.

• Cheap paint
  Take it from someone who has wielded many a paintbrush: Cheap paint doesn’t cover to top-of-market standard until maybe the fourth coat, after the first three have, finally, thoroughly dried. By the time you’ve paid for the extra buckets and the painter’s arm to apply them, and made other work wait on the paint, you would have been much better off with top quality paint that covers well in one or two coats.

• New but dirty, or missing in action
  Don’t install new carpet or other dirt-catching new items (especially those on the floor) until just before going to market. Professionally cleaning a new carpet thoroughly trod upon by worker’s boots is expensive and can be time-consuming. Comparatively, it’s easy to freshen up a new clean carpet. Likewise, delay installing new appliances until listing or even closing, in case thieves break into the vacant project property and make off with them.

• Unexpected contractor delays
  This is a ticklish subject with the person who has the life of the project in his or her hands, as it were. But a contractor who is late, delays work, or is in the weeds on a property problem can run up carrying costs as well as direct project costs. Use only proven, reliable and reputable contractors. That’s the best way to avoid having to use the out-clause in your contract, as well as the backup contractor you have on speed dial.

This is a short list of costly time-wasting mistakes that are (mostly) easy to avoid. Take the lesson of these examples to other decisions in your rehab project. The property’s cost meter is running! What’s the real return on the time and cost to implement each great idea, factoring in carrying costs as well as direct costs? Keep your eye on the clock and the calendar as you plan the work on your rehab property.

What is your tip for avoiding project delays?

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