Episode Transcript
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Ed Mathews (00:01):
Ever sat in your car
scrolling through Zillow and
thought, man, if I just knewwhere to start, I could flip one
of these.
Yeah, I've been there too.
Most people who want to fliphouses never even start, not
because they're lazy, butbecause they don't have the
blueprint.
Well, that changes today.
If you give me five minutes,I'll give you real-world
flipping strategies thatactually work.
(00:21):
No fluff, no theories, nogatekeeping, just real how-to
information for you to applytoday.
Hey there, welcome back to Demo, to Dollars, where we turn mess
into money, one rehab at a time.
I'm Ed Mathews, and today we'reanswering a huge question that
trips up even experiencedinvestors how do you build a
(00:43):
rehab scope of work fast withoutmissing anything important?
Whether you're flipping,renting or assigning a deal,
this is how you keep yourprojects on track, your
contractors aligned and yourprofits intact.
And yes, you can do it in 30minutes or less.
Let's dive in.
So let's talk about why thismatters.
A solid scope of work, or SOW,is your contractor playbook.
(01:04):
Without it, you're basicallyhanding them a blank check and
hoping for the best.
It sets expectations, controlsyour budget and gives lenders
and partners confidence that youknow what you're doing.
(01:24):
From episode four and you'reback at the office or your
kitchen table.
It's time to take what youobserved and turn it into a
structured scope of work.
Here's how to do it in just 10minutes.
Start by organizing your notesinto those core categories you
already reviewed on siteExterior windows, siding,
roofing, foundation, landscaping, interior, kitchen, bedrooms,
baths, living room, family roomand, of course, basement and
(01:45):
mechanicals For each section.
Run through what you documentedand tag each item with one of
these three labels.
Repair Something broken or wornbut fixable, like trim that
needs painting, a loose handrailor small drywall holes.
Replace it's gotta go.
Think an old boiler, rottedwindows or avocado green toilets
(02:05):
.
Leave If it ain't broke.
Don't spend the money.
Save budget for what matters,and what matters are the
following A clean and safe home,a nice kitchen, nice bathrooms,
curb appeal with nice flowers,mulch and greenery.
This step brings structure toyour gut instincts.
It stops you fromover-improving and overlooking
key details.
(02:26):
Here's an example From yourwalkthrough.
You noted the bathroom vanitywas chipped, the tub had moldy
grout and the toilet looked likeit was relatively new.
In your scope, document thatbecomes vanity.
Replace tub repair we willre-grout it.
Toilet thoroughly clean butleave as is Simple, clear,
actionable.
(02:46):
Remember, you will never livethere.
You're not improving theproperty to the point that it
would become your dream home,and you're certainly not
recreating the Taj Mahal.
You want to provide a clean andsafe home that is
well-appointed.
However, you also want to leavesome tasks for the new
homeowner to complete.
They'll want to make it theirown.
You need to make smartdecisions based on the
(03:07):
neighborhood, the price pointand your exit strategy.
Okay, now let's talk aboutcosting.
We capture our costs from pastjobs in a database.
This enables us to search thoseprojects for pricing in the
future.
We use a cloud tool calledFlipper Force to manage our
scope pricing and create thefinal work breakdown, bid and
budget documents.
It is an ever-evolving tool.
(03:28):
I'll put a link in the shownotes.
At some point we'll figure outhow to leverage artificial
intelligence to aid in thiseffort as well.
We also rely on our trustedcontractors, especially for work
on the mechanicals heating,cooling, plumbing, electrical
and septic.
Then we add a 10% minimumcontingency for surprises we
expect to uncover and there arealways surprises.
(03:49):
Every project will throw you acurveball, so you got to plan
for it.
Okay, let's talk about the finalfive minute review.
You want to take a quick reviewof your scope.
Are the line items crystalclear?
Anything missing?
Can you remove anything fromthe scope?
No, clean it up, save it, sendit to your contractor or project
manager for their review.
All right, you've just built ascope of work like a pro.
(04:11):
Before I wrap up, here are threemistakes.
To avoid One vague language, bespecific.
Say install five interior doorsin all bedrooms and both
bathrooms.
Don't say fix doors and assumeyour guys will understand.
This alone will save you a lotof time and brain.
Bathrooms Don't say fix doorsand assume your guys will
understand.
This alone will save you a lotof time and brain damage.
(04:33):
Two forgetting your contingencybuffer.
Every project will throw you acurveball Without planning for
it.
You're just begging to go overbudget.
And three failing to activelymanage scope.
If it's not written down, itwill never happen.
If something changes, the scopedocument must also change.
Final thought Building a scopeof work doesn't have to be a
three-hour ordeal.
With this system you can walkthe property, organize your
(04:53):
thoughts, price the job andreview it in about 30 minutes
flat.
Want an example of our rehabscope of work doc?
Click on the link in the shownotes and you can grab it for
free.
Thanks for making us a part ofyour day.
If you have a specific questionor want me to talk about a
particular topic, be sure toleave a comment and I'll address
it in an upcoming show.
See you next time.
(05:13):
Thanks for listening to Demo toDollars.
If today's episode helped youmove one step closer to your
first or next deal, do me afavor follow us wherever you get
your podcasts so you never missa show.
I'm grateful to be part of yourjourney.
Now get out there and getcracking.
Bye for now.