Today’s REI Classroom Lesson
Holly McKhann chats with us today about how she has gotten her contractor to take the initiative to take control over some of the management type tasks (if the contractor isn’t a true general contractor). By helping contact and schedule subcontractors, it allows her to focus on more important aspects of the business.
REI Classroom Summary
After years of working with her contractor, a trust was built and Holly started having her contractor help out more and is empowering him to go the extra mile with praise and incentive.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike: Welcome back to the flipnerd.com REI Classroom where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Holly: Hey, guys, it’s Holly McKhann from houseflipmasters.com, your REI Classroom host of the day talking to you today about some experiences I had just this week. I’d love to share my current learning as I’m still progressing. Even though I’ve flipped over 200 homes, I’m always learning and improving.
Mike: This REI Classroom real estate lesson is sponsored by theinvestormachine.com, FlipNerd’s private investor coaching program and your blueprint to investing success.
Holly: This is what I’ve been experiencing this week with my main contractor who is not a licensed guy but he, and I’ll say he does great work, but he’s not the all in one done for you retail general contractor, and I get a good price because of that. Therefore, he kind of does a lot of the stuff, but there are a lot of things that he doesn’t do. In the past it’s been me that calls all these subs and tries to organize it with him.
But, just in the last couple of weeks on this rehab I was so excited because he took it upon himself to call the garage door guy to bring out the garage door opener and get that in. I was so excited about that. Then, I went on to say, “Hey why don’t you call the painter and here’s her number.” Some of these guys he’s worked with in the past. Some are new people. He’s done a great job. He called my painter. He called the landscaper. He took it upon himself to go find a sub to fix my wrought iron fence that was all rotted out and we needed to replace that.
Of course I’m telling him how much I totally appreciate it, complimenting on it, and I haven’t told him this but assuming this deal goes well and he’s helping me come in under budget and find some other good subs for this, I’m going to give him a bonus to reward him for his great behavior to encourage him to do it more. It’ll be at least 500 bucks, hopefully a couple of thousand, to say, “Hey, thanks so much for all of your extra help you did by calling all these various subs.” It takes time for me to deal with another five to eight people to come in. There are so many things to coordinate even down to the cleaning.
I’ll tell him often, “Will you look for somebody that does landscaping or cleaning in the neighborhood because I live about an hour to an hour and a half away from this flip,” so it’s not like . . . I’ve still never even seen the house. I’m trusting him. I’m letting him make some design choices and color styles because he’s worked for me for a few years and he’s doing well. But I just really want to encourage and reward that behavior by continuing to verbally praise him and give him a monetary reward.
In short, in summary, I would say try and empower everyone that works for you and with you to do more and encourage them. Say, “Oh, you did a great job. How about this, how about that?” And you keep adding more and more to their plate. It will make your life easier and will allow you to grow and expand your business. That’s my tip for today and I will see you next time here on the REI Classroom.
Mike: Are you looking to change your life through real estate investing? If you’re interested in either getting started or taking your business to the next level, please check out FlipNerd’s private program at theinvestormachine.com. This is the most robust real estate investor coaching, networking, and mastermind on the planet and designed for your success.
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Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect those of flipnerd.com or any of its partners, advertisers, or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.
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