Here’s one: “Hey Nick, do you do a lot of the remodeling work yourself to save money, or do you hire it all out?” My answer is simple… I don’t do any of the work myself. Am I lazy? Absolutely not. It has nothing to do with that. I have learned many valuable lessons over the years of me doing this biz, and this is one of them.
There are two main reasons that I don’t do any remodeling work when I rehab a house:
1. You are the Chess Player, not a Chess Piece
I’m sure plenty of you in here have played chess before, but this business is all chess. There are so many ways that you can compare it to that game, but for now I just want to touch on this key similarity.
You are the director of the whole operation and you have multiple things to keep in order during a rehab project.
-You have to manage the budget
-You have to manage workers and subcontractors
-You have to write checks and pay the bills on time
-You have to deal with inspectors
These things are not super hard, they just take your attention and basic intelligence to handle. I’m not suggesting that this is a complex process for geniuses, I’m simply saying that you have a few things on your plate. Doing physical labor shouldn’t be one of them, especially if you’re trying to become financially free and do this full time.
You want to be moving the pieces around strategically and focus all of your mental energy on that. This allows you to connect with more deals, efficiently c with a clear mind, and have your timeline and budget nicely in place.
When you’re busy pounding nails and painting, you’ll lose focus on some of the other things and won’t be as efficient at them. You only have 24 hours in a day and your job during the hours you’re running these project should be to keep an organized and well oiled machine.
2. Focus on Strengths, and have someone else handle your weaknesses
I’m FIRM on the idea that you only have one life and you should totally exploit your strengths and make them SUPER strengths. You do this by constantly sharpening your strong skills over and over.
I don’t know about you, but I’d rather be PHENOMENAL at a couple key things, than be average at many.
If you’re busy trying to figure out how to install ceramic tile or light fixtures, you’re losing time where you could be developing more of your entrepreneurial skills and mindset. These are the skills that will get you to wherever you want to go. If you’re reading this, you have the right mindset already, you have to keep sharpening it though, so it’s always being developed.
Again, if you’re reading this, you probably have some type of entrepreneurial skill(s) and management skills. Even if it’s not much, you’re stronger at that than construction. That’s where your focus needs to be.
I understand how construction works, but if you told me to install a set of cabinets in the kitchen, they would collapse after you put in the first plate, cup, or whatever. I know that and I don’t care.
True entrepreneurs are NOT afraid to admit their weaknesses and happily play chess with them.
I know many of you may be saying that the first time you rehab a house, you want to do some work to save money, but I’m here to tell you to make a little less profit and manage the process like a chess player.
In the end, you’ll be finely tuning your project management, which will, in turn, allow you to do more deals at a time, which will allow you to grow exponentially.
Remember, project management is a skill, so start off on the right foot so you rapidly gain experience.
I just want to touch on one quick thing:
Some of you may have a background in construction and know how to do some of it very well. If that’s the case, I still want you to do the math on your savings and realize that sharpening your project management skill will be much more valuable long term.