Timing is everything in business, but more so in real estate. You may buy properties at bargain prices at certain periods. You may lock in contractors at reasonable rates at certain periods. Property selling may be slower and go at reduced prices during certain periods. You need to be aware of these periods so you know when to buy, rehab, or sell, as holding costs may apply if you finish rehabbing a house and have to hold on to it to wait for good selling periods. You also need to know these periods to plan the work on your rehab.
Outside projects like landscaping, walkways, roofing, and exterior painting may not be scheduled for winter seasons due to the weather. You may do this work during the right weather conditions and do the inside work during winter. Knowing when to schedule certain projects keeps the contractors busy throughout the rehab without interruptions, which may be costly due to holding period expenses or contractors asking to move to other projects or other competitors. I once made scheduling mistakes this way, and contractors left to work for other people. It took more than three months to get them back to my project.
The big takeaway here is that intimate knowledge of your project helps with the hiring, timing of work, and knowing which materials to buy and when. You will also know when to advertise for sales and rentals, the type of rehab to undertake, and in which neighborhoods to do a high or low-end rehab.
(Notes: Excerpted from “Why Do Contractors Lie?” page 70.)
