September 7, 2011 05:07 by
andrey
Taking what may seem to be an overwhelming process of questions and planning, especially to a first time real estate investor, and making light of it is what this list of questions is all about. Hey if a caveman could it....
SO, EXACTLY WHAT IS THE WORK THAT NEEDS TO BE DONE?
Figure out what the scope of work will be. Be as thorough as possible here because having entire chunks of unexpected work pop up later in the investment project will certainly create delays which will in turn create higher holding costs and shrink profit margins.
AHH, WHEN DOES EACH AREA OF WORK START AND FINISH?
Don’t just plan out when you want to start and finish the entire project. Establish milestones or mini-results along the way for each area of work and define when those will each start and finish. This is a good way to manage the scheduling element of your project. If you find that a mini-result or milestone isn’t on track then the whole project isn’t on track.
OKAY, WHO EXACTLY IS DOING THE ACTUAL WORK?
After you have figured out what kind of professionals you will be needing to help you complete your investment project, you will need to then make final picks on which individuals you will be using and who will be doing what. We suggest that you make sure they can all contact one another so that communication and progress flow well.
COUGH! IS THERE ANYTHING I MIGHT HAVE MISSED?
Technically you don’t know what you don’t know, right? So how could you know what you missed... wouldn’t technically by knowing what you missed, it wouldn’t be missed? Good and valid points for sure... that’s why you ask a couple other successful investors to review your plan and see what they think.
UMM, WHAT MIGHT GO WRONG?
This is where you figure out what your risks are and how you plan on dealing with them should need arise. Every real estate project will have some inherent risk with it... this shouldn’t make you shy away but simply motivate you to create contingency plans so that you are thoroughly prepared.
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