Right now is probably the best time to invest in real estate; investors are often flipping or building new homes because people will always need a place to live. With housing becoming more and more scarce, many people choose to rent. There are now more households renting right now than at any other point in U.S. history. Building a new house will provide you with a stable and predictable income; it’s the simplest and most straightforward investment you could make.
For some people, the thought of investing in real estate can seem a bit overwhelming. It’s important to have a good understanding of the market before you make a decision. Oftentimes, it’s better and more cost effective to build two houses at once. This will save you time, convenience, and will more than likely make you more money in the long run, but this also really depends on your budget, and what you’re financially comfortable with. It doesn’t matter if you’re building one house or three; you will need some Real Estate Asset Management.
The Importance of Hiring a General Contractor
One of the most important parts of building houses is finding a good contractor, someone who can bring their experience and expertise to the table, to make sure the construction goes smoothly.
Keeps Things Organized
A general contractor does everything from scheduling electrician appointments, organizing on-site inspections, and often times even calculating construction costs.
By hiring a general contractor, they will handle any risk management concerns you might have. For example, if someone is injured while working on your home, this could potentially cost you tens-of-thousands of dollars, but general contractors are required to have liability insurance and coverage to protect them in case an accident were to happen. If your contractor is working on the flooring in your kitchen, and suddenly falls through the floor, your home owner’s insurance may not cover it but your contractor’s liability insurance will.
Provides you Reassurance
One of the biggest advantages of using a general contractor is that they’re able to give you a timeframe of how long construction will take, and often will offer some sort of warranty, usually good for one year. So if you have any problems with plumbing, electrical, or even a loose floorboard, the contractor is responsible for having it fixed, but if you did the work yourself, you’d have to pay for it all out of pocket.
Finding the right general contractor for your project can take weeks, or in some cases even months, and may seem a bit frustrating, but the results will be well worth it because your general contractor is the backbone of your entire project.
Here Are Some Qualities to Look for When Choosing Your Contractor
When it comes to home construction, one of the most important factors has to be experience. The last thing you want is someone with little to no experience. While planning a construction project, an under-qualified contractor is an investor’s worst nightmare. This is why it’s extremely important for your contractor to have a list of detailed credentials and past references that will show what experience they have to ensure that they’ll be able to handle the job. It’s probably a good idea to do a few face-to-face interviews, considering your whole project relies on them, and you’ll more than likely be seeing them every other day.
The only thing more important than experience would have to be a reputation. Someone can have forty years of experience, but that doesn’t mean they have a good reputation. Anyone can turn on an oven, but that doesn’t make them a baker. Often times a contractor may only have 6 or 7 years of experience, but that doesn’t necessarily mean they’re not qualified for the job. You want a contractor with a strong reputation, who is able to deliver quality work.
Here are Some Key Questions to Ask
• Can they provide you with a list of previous clients?
• How long have they been working?
• What size projects do they usually take on?
• You may also want to ask for additional financial references.
When building a house, your timeframe and budget often change, many times a 3-month job can take up to a year to complete. You should ask your contractor before you hire them how many other jobs they have going on and how flexible their schedule is.