Construction

Interested in building and running a successful house flipping business? We would like to help you! At Select Home Ventures LLC, we have been profitably flipping houses for over 10 years! We have operated in both hot and cold markets. These tools will work for you too!

Congratulations! You have chosen a construction budget, created a project estimate, wrote an offer, negotiated, and now you have a house under contract! Way to go! Now is the time for the Project Manager to get to work creating a detailed construction plan and finding a contractor to do the work within the budget and time. The clock is ticking. We need to lock down the contract with a general contractor before closing to ensure that we can start construction immediately. Every day that passes after closing will cost us in carrying fees!

How do you create a construction plan? Don’t worry. The products in the SHV Construction Collection will guide you through the construction stage of house flipping.

The Project Manager will use the home inspection report and the team’s recommendations to create a

  • Scope of Work
  • Project Timeline
  • Materials Specification
  • Layouts for any alterations (new floor plan, kitchen layout, pool and patio area, etc).

These items together detail the construction plan which should fit within the budget allotted for construction by the SHV Construction Budget Estimation.

The Scope Of Work is created using the SHV Construction Sequence and the SHV Scope Of Work Software. We usually go to the property with a pen and paper many times. We spend several hours there thinking about what needs to be done and taking measurements. We may spend days doing this. Take your time and get it right. We write it all down inside and out, room by room. The more detail the better. Next we use the SHV Construction Sequence to sequence the work. Then we use the SHV Scope Of Work Software to create the SHV Scope Of Work. Don’t worry if you remember something later on, you can change it easily with this system.

The SHV Project Timeline is created using the SHV Scope Of Work and the SHV Project Timeline Template. The process of creating the SHV Project Timeline using the SHV Scope Of Work and the SHV Project Timeline Template is trivial by design.

The Materials Specification and detailed layouts are created by visiting the local hardware stores. The first time is always the longest. We need to select the SKUs for the finish level products. These include cabinets, countertops, paint, flooring, plumbing and electrical fixtures, and many others. The cabinetry section has people to help design the kitchen layout and select cabinetry. They will produce a detailed layout of the kitchen with measurements as well as an invoice listing the cabinets and pricing. You don’t need to pick the most expensive materials. When it’s new, it’s nice. On future projects, you could reuse this Materials Specification. You will find an example Materials Specifications and kitchen layout and many other useful addenda in the SHV Contract With General Contractor.

The Project Manager collects multiple contractor bids using the construction plan. The Project Manager may have to revise the plan depending on the bids received. If the contractors are unwilling to complete the construction plan for the allotted budget, the SHV Scope of Work must be reduced to fit within the budge. We may revise the plan several times, or even revise it with several contractors.

Ultimately, the selected contractor and the Project Manager arrive at a mutually beneficial construction plan. This formal project planning allows all team members, the construction contractor, and investors to track the project progress so that upgrades are completed in a timely, cost-efficient, transparent manner. It also minimizes misunderstanding between the parties.

The contractor and the Project Manager sign the SHV Contract With General Contractor. This contract legally binds with the construction plan. It stipulates exactly what work will be completed, the sequence of that work, and the points along the way where the contractor will be paid (receive draws). The contract also offers incentive for finishing the work on time and budget. The Team Lead may now use the SHV Project Estimate and finalized construction plan to attract potential investors. The construction plan will serve as the communication medium through which the investors see the progress of the project. As the tasks on the Scope of Work are marked as completed, the SHV Project Timeline reports the project completion percentage. Everyone is kept up to date!

These products are the actual tools we use at Select Home Ventures LLC to manage our construction. They will do the heavy lifting for you!

These products are ideal for any serious real estate investor, whether experienced or just starting out, who would like an example of a successful model for house flipping. The document also serves as an excellent starting point for your own business foundation, or for soliciting investments or other financing for your own venture.

All products are delivered digitally, and are available for instant download.

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