My Zeo

  • Home
  • About
  • Blog
  • Lifestyle
  • Health
  • House
  • Pets
  • Fitness
  • Money
  • Contact

Flipping Home for Profit? Well-Written Scope of Work is a Cornerstone of Your Success

June 3, 2020

You could be an excellent networker with the ability to uncover and put under contract incredible real estate deals. Still, without solid project management competencies, you are bound to blow much of your potential returns. As a private lender working with real estate investors, we see a consistent number of clients having a hard time maintaining control over their renovation process. You can avoid numerous concerns by developing a roadmap for your fix-and-flip project early on. Such a roadmap is called a scope of work. A well-written scope of work is the foundation of your success as a real estate investor.

Flipping Home for Profit? Well-Written Scope of Work is a Cornerstone of Your Success - My ZeoScope of work (SOW) is a document utilized in construction management to detail the work to be performed. It focuses on what needs to be done, costs, duties of the parties involved, and a timeline of the deliverables. The scope of work is not necessarily a contract between a client and a contractor but can serve as such.

There are four reasons you need to spend time establishing an in-depth and clear scope of work.

Scope of work could be required– particularly if a private lender is involved

“Private lenders base their loans on the after-repair value (ARV) of the homes and not on their existing price tag,” – says Kyle Sennott, Managing Partner of New Funding Resources, a private lender in the Washington, DC area. “To assess that after-repair value, we need to know what renovations you are planning to do. Once you provide us with a scope of work, a licensed appraiser will determine the future value of your home.”

A well-written scope of work may aid in qualifying for a private loan.

When dealing with private lenders, the scope of work can make or break your deal. Private lenders often come across applicants who are right on the borderline of their risk tolerance and have to look at the factors that might not be a part of their typical underwriting criteria. The quality of the scope of work is an exceptional predictor of the candidate’s proficiency as a real estate investor.

Working together on the scope of work could help identify the contractor who is right for the job.

Working on the scope of work with your prospective contractor could offer the sense of their work style, attention to detail, and overall responsiveness. Most contractors flourish on ambiguity. Your job, in contrast, to make that scope as clear and as transparent as possible. Watch your contractor’s reaction to the changes you propose. If they resist adding details and clarifications, consider whether they have what it takes to finish the job on time and as agreed.

Well-crafted scope of work might minimize issues ms with your contractor and your private lender.

The more time you invest in your initial scope of work, the fewer problems you encounter later in the process. Why? Because the scope of work is the foundation for other important documents. Draw schedule is a good example of such a document. A draw schedule details under which situations your contractor earns money. It also has another purpose. If you are working with a private lender, a draw schedule specifies how much money your private lender releases back to you and when. Usually, a private lender maintains your construction funds in an escrow account and releases them in installments as you finish various phases of renovations. A well-crafted draw-schedule helps avoid misunderstanding between the parties by clearly connecting payments and renovation milestones.

New Funding Resources is a private lender that funds promising real estate investment opportunities in Maryland, Virginia, and Washington, DC. In business since 2006, it helped hundreds of real estate investors grow their wealth by fixing-and-flipping homes.

 

Leave a Comment · Money

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

About Me

Hello all!!!! I'm Darcy and I recently started writing on My Zeo about health and fitness (and part of that important health equation is sleep!). As we are all super busy with life, I try to integrate how to stay fit, relax and be healthy and happy through everyday life.

Facebook

My Zeo

NEWSLETTER

TeraHemp

A Beginner’s Guide to Buying Affordable Home Furniture

When it comes to decorating your space, it should be fun, not something that overwhelms you. But . . .

Read the Post

Sustainable Tree Care Practices for a Greener Tomorrow

The Role of Trees in Sustainable Environments Trees are vital natural allies in combating . . .

Read the Post

On-the-Go Wellness: Why 7-OH Shots Are the Wellness Hack You Need

Let’s be honest: maintaining wellness in a busy world is a full-time job. Between work, workouts, s . . .

Read the Post

Satta Matka Result: Biggest Winner of 2025 Claims Record Payout

Have you ever wondered what it feels like to win a life-changing amount of money with just a simple . . .

Read the Post

Discover Why the SBLA Beauty Liquid Facelift Wand Was Named Serum Product of the Year

When it comes to anti-aging innovation, few products make a mark as swiftly and effectively as the . . .

Read the Post

Follow Us Online

  • Facebook
  • Instagram
  • LinkedIn

Copyright © 2018 myzeo.com

Copyright © 2025 · Simply Pro by Bloom Blog Shop.