WEBVTT
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[SPEAKER_01]: You found the deal, you ran the numbers, you negotiated, and you closed.
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[SPEAKER_01]: Now the biggest challenge begins.
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[SPEAKER_01]: How are you going to keep your construction project on time and on budget?
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[SPEAKER_02]: In today's episode, we're going to break down what you have control over and what you don't.
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[SPEAKER_02]: And I am interviewing Liz Faircloth.
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[SPEAKER_02]: who is currently building a ground up construction value at five million dollars.
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[SPEAKER_02]: We're going to tell you exactly what she's doing with the delays that she's facing.
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[SPEAKER_02]: So you can also duplicate that if that happens to you.
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[SPEAKER_02]: Let's break that down.
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[SPEAKER_00]: Welcome to the Real Estate Investor podcast, a top 1% show helping women achieve financial freedom by investing in real estate.
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[SPEAKER_00]: And now your host, Liz Faircloth, and Andressica Dellie.
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[SPEAKER_02]: So Liz, you are building right now a ground up new construction project of value at $5 million.
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[SPEAKER_02]: So let's break that deal down.
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[SPEAKER_02]: How did you find it?
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[SPEAKER_02]: What's the construction budget and where you add right now and we're going to go over the the challenge is right all the specifics.
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[SPEAKER_01]: I love it.
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[SPEAKER_01]: So my husband and I met wanted to do a local project for for quite some time and we're in a luxury market.
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[SPEAKER_01]: So there's very low supply of property in a very high demand.
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[SPEAKER_01]: you have a lot of people coming into the area that are, they're looking for second homes, they're looking for vacation homes, they're looking for kind of weekend homes.
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[SPEAKER_01]: And so we started networking with a local realtor, literally she's the top producing realtor in our community, which is new hope.
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[SPEAKER_01]: And we just started networking with her, we had a couple meetings with her, kind of sharing some of our criteria, some of what we're looking for.
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[SPEAKER_01]: And we wanted to do something that was going to add value, right, to the community, and add value to the supply and demand issue, which we know is a good place to be.
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[SPEAKER_01]: And so a couple of weeks after we had our last meeting with her, she shared a project on opportunity.
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[SPEAKER_01]: It's along the Delaware River, and it's a property that was sort of obsolete, if you will.
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[SPEAKER_01]: It's 1900 square feet.
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[SPEAKER_01]: When you walked in literally your head, hit the ceilings, it just wasn't a property that people wanted to probably live in any longer.
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[SPEAKER_01]: It was an opportunity to tear it down and then rebuild.
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[SPEAKER_01]: We're rebuilding on the river, we about 5,000 square feet, three floors, you know, four bedrooms.
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[SPEAKER_01]: The value though is that you're providing a luggery home in a community that desperately wants more of those types of properties.
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[SPEAKER_01]: There's about six homes on the river, right where it's, you know, in line, and there's just an opportunity that has, you know, has a great view of the river and has a great view of the tow path, which people bite on and everything.
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[SPEAKER_02]: So let's talk about the challenges that you're currently facing.
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[SPEAKER_02]: $1.5 million and the ultimate goal, right?
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[SPEAKER_02]: I always say that time and budget go ahead to hand.
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[SPEAKER_02]: If you screw up one, you screw up the other.
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[SPEAKER_02]: They go really parallel to each other.
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[SPEAKER_02]: So when it comes down to being control of the time and budget, there are two different ways that we can look at it.
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[SPEAKER_02]: What we can control and the things that we can't control.
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[SPEAKER_02]: So for this particular project, what have you putting place to be on time and on budget?
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[SPEAKER_01]: Yeah, I'm going to share that in before I do that.
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[SPEAKER_01]: The challenge for us in moving ahead with this, even though it was a great opportunity.
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[SPEAKER_01]: There's a lot of demand for second homes.
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[SPEAKER_01]: The biggest challenge on dresser was that Matt and I are still set, we're visionaries, right?
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[SPEAKER_01]: And we tend to be more visionary, which you know,
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[SPEAKER_01]: in our, as we run projects, as we run different areas of our business.
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[SPEAKER_01]: And so I knew that was a gap.
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[SPEAKER_01]: So I knew that if this project was going to be on budget and on schedule, I needed to build like an A plus team.
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[SPEAKER_01]: And I didn't need like average people.
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[SPEAKER_01]: I really needed an A plus team.
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[SPEAKER_01]: So that was a new that going in, that that was a liability, if you will, or an opportunity that I need to watch and manage.
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[SPEAKER_01]: So the team that we built, starts with your obviously your realtor, because they're the ones, she was the person who sold us the property, she'll be selling the property for us.
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[SPEAKER_01]: She's also leading the design of the project as well.
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[SPEAKER_01]: And that was critical.
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[SPEAKER_01]: I didn't just want to go with the realtor, though, and dress at that, was the kind of person that was very friendly and bubbly and, like, quote-unquote, smiled a lot.
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[SPEAKER_01]: And I'm not trying to be mean here, but it's more about her personality style because if I'm more of a visionary and I'm going to be more, you know, bringing a team together, et cetera.
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[SPEAKER_01]: I want to see how she drives.
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[SPEAKER_01]: I want to see how she drives just her next step.
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[SPEAKER_01]: I want to see if she's more of a driver if she's looking forward, kind of a no BS person.
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[SPEAKER_01]: And I really like starting myself with no BS people.
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[SPEAKER_01]: Quincy, I don't smile.
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[SPEAKER_01]: I know that seems like a simple thing, but that was something I was really looking for, and she has that exact personality and she has that exactly of being.
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[SPEAKER_01]: She's ahead, she's driving, and that was a really positive thing.
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[SPEAKER_01]: With RGC, I also needed a team that was eight comfortable, you know, building on the river.
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[SPEAKER_01]: It's not the easiest project to get to, because it's literally down this little road of the toe path, so certain construction vehicles don't
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[SPEAKER_01]: to get there, right?
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[SPEAKER_01]: So it's not the easiest project from that perspective.
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[SPEAKER_01]: I needed a no BSGC who had experienced building on the river, luxury homes, and also wasn't deterred from the challenges that he was going to face.
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[SPEAKER_01]: All of this is going to take longer because of the fact that I have to go down the small road.
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[SPEAKER_01]: his same type of personality as well.
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[SPEAKER_01]: He's much more straightforward, detailed oriented, and driving the project along.
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[SPEAKER_01]: I needed that and my core team.
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[SPEAKER_02]: I think when you're dealing, when you're building a luxury project or any kind of project to be honest,
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[SPEAKER_02]: Really understanding your gap where you're good at, what you bring to the table when it comes down to personality skills and experience, where are the gaps and what the role needs.
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[SPEAKER_02]: So for example, in your case, a GC or a Realtor, what type do I need?
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[SPEAKER_02]: There because if you have a GC that it's more people oriented and not process oriented you're going to have an issue with the time and the budget for sure right and that that is something that I think people on their estimate investors on their estimate those things and they were like oh we get a long very well we're very friendly I don't need to be friends with everybody that I work with now
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[SPEAKER_02]: I will become very friendly if you finish my project on time and on budget.
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[SPEAKER_01]: Yeah, it's the way being and it's also the experience level.
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[SPEAKER_01]: The fact that my GC built a home on the exact same river that I'm building a home, that's a huge advantage, right?
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[SPEAKER_01]: That was a criteria that I had.
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[SPEAKER_01]: The realtor,
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[SPEAKER_01]: built three condos.
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[SPEAKER_01]: It's not necessarily 5,000 square foot home, but she was literally the developer slash realtor on her own projects closer to town.
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[SPEAKER_01]: So again, from an experience level, she's not, oh, I heard this from another realtor.
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[SPEAKER_01]: She's the realtor and the developer.
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[SPEAKER_01]: Again, along the same river.
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[SPEAKER_01]: So high experience, strong personality, and it really make it happen in individuals was my, like, bulletproof to be honest.
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[SPEAKER_01]: I don't want to have one miss in that.
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[SPEAKER_01]: you know, the strong timeline and budget type of approach, which I have learned, however, you still want to see that in your team.
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[SPEAKER_02]: You remind me of a project.
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[SPEAKER_02]: I build two, two town homes in South Philadelphia and one thing that I completely forgot, but you
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[SPEAKER_01]: bring it back for you.
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[SPEAKER_02]: I'm bringing it back.
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[SPEAKER_02]: I forgot about this lovely project.
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[SPEAKER_02]: It was a very cool project when we saw there was a house in a lot and would tear down the house.
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[SPEAKER_02]: But right next to it there were three brand new construction, new construction, townhouses.
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[SPEAKER_02]: And I went ahead and I looked at who was the architect and who was the GC because I was greatly like.
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[SPEAKER_02]: how they did the project.
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[SPEAKER_02]: Not that we were going to copy CAD because that would not going to be cool for the restail.
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[SPEAKER_02]: However, they knew exactly what work we're doing to work on those projects.
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[SPEAKER_02]: We bypass so much time.
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[SPEAKER_02]: We bypass so much there and it allow me to create a project that was complimentary to the next door.
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[SPEAKER_02]: same level of finishes and I got an opportunity to make it a little bit better based on the tweaks that we did.
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[SPEAKER_02]: So working with people that have experienced a ready on literally on the same market that you're looking to build, you bypass so much when it comes down to the learning curves.
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[SPEAKER_02]: All right, so those are the things that are controllable, right?
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[SPEAKER_02]: However, in real-steered, there are so many things that are out of our control, or it happens, and then how we react to those, to the back on control, we're, continue the progress, I would say, despite any types of delays.
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[SPEAKER_02]: So if you can share with me, what are the current challenges that were out of your control and how you are mitigating it?
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[SPEAKER_01]: Yeah, and there's been a few, right?
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[SPEAKER_01]: We had one that earlier in the project that we didn't think we'd have to get go to the zoning board because it was pretty much you were using the same footprint of the property, literally taking it down to the studs, rebuilding.
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[SPEAKER_01]: We were told that we wouldn't have to go to zoning and involve the township from that perspective, and that was completely wrong.
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[SPEAKER_01]: We ended up having to do that.
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[SPEAKER_01]: So that was a solid.
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[SPEAKER_01]: two to three month delay that I had not necessarily enjoyed or liked.
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[SPEAKER_01]: However, I did bake in when I originally looked at the project and said, okay, what is the worst case scenario?
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[SPEAKER_01]: And I think that's the key to undress a that right now because there's certain things you're being told or that you're not going to need to go to zoning.
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[SPEAKER_01]: I like to have the worst case scenario timeline.
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[SPEAKER_01]: because if the project works with that timeline because it's going to include money, then you move forward.
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[SPEAKER_01]: So I was really conservative.
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[SPEAKER_01]: We were really conservative in our underwriting and gave a lot of buffer time.
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[SPEAKER_01]: So although I wasn't expecting to have a new go-to-zone, those months were actually baked into my actual projection.
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[SPEAKER_01]: The other biggest kind of delays that had been really frustrating, my kids had enjoyed the snow, however, the amount of snow, ice, rain, et cetera, that has, you know, the northeast has found in this lovely season has certainly delayed our team and getting through framing.
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[SPEAKER_01]: And so that's kind of, we are done with framing now, just so it can give context everyone.
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[SPEAKER_01]: However,
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[SPEAKER_01]: getting people out there.
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[SPEAKER_01]: It was hard to even get out there because of the toe path and then the, you know, getting the roof on all the things that are real delays that I cannot control being in the Northeast.
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[SPEAKER_02]: Real estate projects are full of putting up fires, managing cash flow and making sure you're on time and on budget.
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[SPEAKER_02]: But things happen and when you are out of control,
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[SPEAKER_02]: What do you do?
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[SPEAKER_02]: So, list, tell me exactly what you're doing when, you know what shit, okay, it's the, you know what, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the,
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[SPEAKER_01]: Yeah, and I think the biggest mistake that investors make is that often when there are delays outside of our control, we just kind of pause the project or we stop communication with the key people on our team.
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[SPEAKER_01]: I increase communication when there are delays.
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[SPEAKER_01]: And so strategy number one that I want to recommend is that your meetings with your real-term meetings with your GC, they don't stop during delays.
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[SPEAKER_01]: So number one, always have a recurring meeting with your GSA.
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[SPEAKER_01]: I have the same time, same day the week, so that's number one.
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[SPEAKER_01]: Number two, during that recurring meeting, you go through your agenda even if there are delays.
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[SPEAKER_01]: And here's a quick simple agenda.
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[SPEAKER_01]: I know, Andrea, we talked to a lot of women in our community.
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[SPEAKER_01]: Like, what do you guys cover?
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[SPEAKER_01]: What is your agenda, right?
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[SPEAKER_01]: You could take my agenda, you can lead it, but these are the things that I cover with our GSA.
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[SPEAKER_01]: Number one, what overall progress has been made, right?
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[SPEAKER_01]: What's the overall kind of snapshot of where the project is?
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[SPEAKER_01]: Obviously, if there are delays, he or she might be saying the same thing week after week.
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[SPEAKER_01]: I don't really care.
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[SPEAKER_01]: I want to hear where the project is and what we can do, right?
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[SPEAKER_01]: That's number one on the agenda.
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[SPEAKER_01]: Number two on the agenda is bottlenecks.
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[SPEAKER_01]: We use bottlenecks a lot with investor and I typically teach and use that with other teams that I work with.
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[SPEAKER_01]: So bottleneck is something that's where people are getting stopped.
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[SPEAKER_01]: Right, so if they're getting stopped, obviously a delay is a stop.
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[SPEAKER_01]: What are we doing to move through that bottleneck?
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[SPEAKER_01]: Are there any ideas or are there any solutions?
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[SPEAKER_01]: The other thing that gets covered during bottlenecks is any decisions that we as the owners have to make, anything that we're holding up a decision or a process, right?
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[SPEAKER_01]: So those are the things that we cover there.
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[SPEAKER_01]: And then the third thing is always like, okay, what are the goals for the week, what are the goals for the next two weeks?
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[SPEAKER_01]: where we had it in the next two weeks.
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[SPEAKER_01]: So if there is a current weather delay, it's a snow storm, something happens, I at least know what's on this GC's head and he has a plan for the next two weeks.
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[SPEAKER_01]: Again, the beautiful part is that you should know what should be happening in the next two weeks.
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[SPEAKER_01]: You're asking every week.
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[SPEAKER_01]: because you want to make sure they are very clear on their next two weeks.
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[SPEAKER_01]: So I make sense it's not just for your own knowledge.
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[SPEAKER_01]: You should have a project plan.
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[SPEAKER_01]: However, it is to keep your GC honest and also be on the same page.
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[SPEAKER_01]: Why thought we were going to be doing this?
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[SPEAKER_01]: Why are we delayed there?
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[SPEAKER_02]: Can I throw one more thing?
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[SPEAKER_01]: Sure.
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[SPEAKER_02]: Sure.
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[SPEAKER_02]: You're agreeing in writing.
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[SPEAKER_02]: In writing does not need to be, but it needs to be like a...
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[SPEAKER_02]: Min and meeting.
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[SPEAKER_02]: Yes, we're saying what we have agree or not because
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[SPEAKER_02]: I don't know about you.
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[SPEAKER_02]: I have a good memory and I remember what people have the best memory of anyone I've ever met.
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[SPEAKER_02]: I don't like to have that because then I can say you don't.
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[SPEAKER_02]: On 1990.
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[SPEAKER_02]: No, I have the worst memory.
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[SPEAKER_01]: We were wearing well together.
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[SPEAKER_02]: You were wearing disclose.
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[SPEAKER_02]: You were sitting this.
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[SPEAKER_02]: Right.
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[SPEAKER_02]: I exhausting.
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[SPEAKER_02]: But I think that the goal here is to say, this is what we had agree with.
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[SPEAKER_02]: What happened there?
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[SPEAKER_02]: Yes, does he or she need a place where to put it?
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[SPEAKER_02]: Because you're going to find that jesus are amazing at their craft.
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[SPEAKER_02]: Not so good at running a business itself.
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[SPEAKER_02]: So it's always make sure that you're not like, oh,
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[SPEAKER_02]: being like the mum of the situation, right?
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[SPEAKER_02]: I want a leader and what comes out of their mouth needs to match with their action.
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[SPEAKER_02]: It just doesn't work when they say one thing and do something else and I totally find with the lace in the sense of it's out of their control.
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[SPEAKER_02]: They couldn't have predicted
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[SPEAKER_02]: the ordering the windows because you know there is going to be a delay on the window.
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[SPEAKER_02]: It's just no brain, right?
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[SPEAKER_02]: Everybody knows that that is in construction.
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[SPEAKER_02]: So it's always a way to be on the same page when it comes down to communication.
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[SPEAKER_02]: One of the biggest mistakes that I've seen is when I understand one thing, they understand something else and then it's a recurring matter.
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[SPEAKER_02]: You cannot be a recurring man or when it comes down to communication.
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[SPEAKER_02]: Otherwise, the project, it's no doubt.
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[SPEAKER_02]: You will be at the lay and it will be an over budget.
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[SPEAKER_01]: Yeah.
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[SPEAKER_01]: That's a great point.
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[SPEAKER_01]: What we have done is we have a shared folder.
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[SPEAKER_01]: So as my contractor is updating a budget or requesting a draw or there's something, right?
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[SPEAKER_01]: Action that's needed to be taken.
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[SPEAKER_01]: He's updating that document in the Google Drive.
15:49.537 --> 15:53.883
[SPEAKER_01]: The other thing that we do have is a shared doc of meeting minutes, so that is something we have put in place as well.
15:54.404 --> 15:55.345
[SPEAKER_01]: And that's just helpful.
15:55.445 --> 15:59.031
[SPEAKER_01]: So we're all in the same page and we're not having to regurgitate things.
15:59.091 --> 16:03.337
[SPEAKER_01]: So we've been talking about underpinning the property for the last month, something's off.
16:03.357 --> 16:03.497
[SPEAKER_01]: Right?
16:03.517 --> 16:07.783
[SPEAKER_01]: If you're literally talking about the same thing with no progress, something is always off.
16:08.284 --> 16:13.571
[SPEAKER_01]: And so then you have to get to that root cause of what's happening here, that why we keep talking about the same thing.
16:13.591 --> 16:14.953
[SPEAKER_01]: You should be talking about new things.
16:14.973 --> 16:15.855
[SPEAKER_01]: There should be new challenges.
16:15.875 --> 16:18.278
[SPEAKER_01]: There should be new problems.
16:18.258 --> 16:24.007
[SPEAKER_02]: One thing that I always do when I am, I have my phone open on the Google Drive.
16:24.408 --> 16:33.803
[SPEAKER_02]: So as we are going through the meeting, I start taking notes there inside the document versus what did I talk about?
16:33.783 --> 16:36.428
[SPEAKER_02]: Listen, I have almost some out of that project.
16:37.049 --> 16:42.940
[SPEAKER_02]: I will not hold space in my head about all the line items that we discussed it.
16:43.040 --> 16:50.174
[SPEAKER_02]: So, for all of you having on the cloud, you can access immediately and just put a bullet points there.
16:50.755 --> 16:53.400
[SPEAKER_02]: What is the task, who owns a task by when?
16:53.440 --> 16:55.183
[SPEAKER_02]: That's all you need.
16:55.163 --> 17:00.671
[SPEAKER_01]: When you face it the way that's out of your control, here's what you can do to still move the project forward.
17:01.311 --> 17:05.057
[SPEAKER_01]: So the biggest thing that we've been spending time on, Andresa, is the design side.
17:05.537 --> 17:17.053
[SPEAKER_01]: This is a 5,000 square foot property, luxury property that the design of this property is critical to the success of selling this property to the end user.
17:17.033 --> 17:20.019
[SPEAKER_01]: That was another gap I had to be perfectly frank and dress.
17:20.500 --> 17:21.302
[SPEAKER_01]: I'm a lot of things.
17:21.342 --> 17:23.286
[SPEAKER_01]: I have a lot of wonderful qualities.
17:23.546 --> 17:31.042
[SPEAKER_01]: I have so many we can go on for the rest of the day, but you know designing a luxury property wouldn't be probably top of the list.
17:31.062 --> 17:31.623
[SPEAKER_01]: Would you say that?
17:31.824 --> 17:33.507
[SPEAKER_01]: And dress is a fair thing to
17:33.487 --> 17:34.849
[SPEAKER_01]: say about your friend Liz.
17:35.550 --> 17:38.715
[SPEAKER_01]: I don't have like the best like oh my god this needs to go with this.
17:38.815 --> 17:40.678
[SPEAKER_01]: I usually put things wrong together.
17:40.698 --> 17:45.445
[SPEAKER_01]: Now you'd be like Liz you're the developer of a luxury new build doesn't that concern you?
17:45.966 --> 17:49.411
[SPEAKER_01]: It's a gap I need to manage and that's how you have to think of it as a leader.
17:49.451 --> 17:54.178
[SPEAKER_01]: So I knew I would need to hire a design team if you will to really help
17:54.158 --> 17:55.760
[SPEAKER_01]: with that piece of it, which is critical.
17:56.201 --> 18:01.047
[SPEAKER_01]: The good news is that when I did a lot of walkthroughs to hire my GC, I wanted to see the design.
18:01.387 --> 18:02.629
[SPEAKER_01]: And I asked him, who designed this?
18:03.009 --> 18:04.471
[SPEAKER_01]: Did you, was this your idea?
18:04.511 --> 18:06.213
[SPEAKER_01]: Was that the designer's idea?
18:06.233 --> 18:07.295
[SPEAKER_01]: It's like we didn't have a designer.
18:07.395 --> 18:08.316
[SPEAKER_01]: I designed this house.
18:08.717 --> 18:13.703
[SPEAKER_01]: And it was, you know, a fairly well put together even larger project that I'm doing, luxury build.
18:13.683 --> 18:18.853
[SPEAKER_01]: So I knew my GC had some design experience, however, this is a $5 million home.
18:19.193 --> 18:24.343
[SPEAKER_01]: I didn't want to just lean in only that my GC was going to design this house.
18:24.684 --> 18:25.906
[SPEAKER_01]: I want another flair.
18:25.986 --> 18:28.791
[SPEAKER_01]: I want another team member that's literally that's their job.
18:28.811 --> 18:30.274
[SPEAKER_01]: That was important to me.
18:30.254 --> 18:32.899
[SPEAKER_01]: my realtor also has a design company.
18:33.320 --> 18:35.705
[SPEAKER_01]: So it's her and another person that that was the team.
18:36.066 --> 18:40.936
[SPEAKER_01]: And so what they started to do and what they're going to be presenting with us is they've been working hard behind the scenes.
18:41.256 --> 18:44.062
[SPEAKER_01]: It's not just finishes on dressa, it's not just appliances.
18:44.162 --> 18:44.883
[SPEAKER_01]: That's important.
18:45.405 --> 18:48.651
[SPEAKER_01]: But there's certain layouts that are getting constructed because we're
18:48.631 --> 18:50.134
[SPEAKER_01]: you know, we're just about done with framing.
18:50.554 --> 18:51.877
[SPEAKER_01]: So there's the kitchen layout.
18:51.937 --> 18:53.239
[SPEAKER_01]: How's the kitchen going to be laid out?
18:53.580 --> 18:58.068
[SPEAKER_01]: You know, obviously we've architectural plans, but there's some room for kind of design, if you will.
18:58.488 --> 19:06.302
[SPEAKER_01]: The second thing of the puzzle is obviously your appliances, your finishes, and you taught me this undressa.
19:06.282 --> 19:17.341
[SPEAKER_01]: What are other people, you know, you don't want to just copy finishes or copy appliances, but there's a certain level of appliances that are expected in a $5 million home, then there is in a $200,000 home.
19:17.802 --> 19:18.704
[SPEAKER_01]: That's pretty obvious.
19:19.165 --> 19:25.135
[SPEAKER_01]: However, you need to know what is going to be useful and helpful for an end user that I don't know yet.
19:25.496 --> 19:29.342
[SPEAKER_01]: I'm not custom building this house for an owner that I'm working with right now.
19:29.703 --> 19:31.446
[SPEAKER_01]: So I have to make something
19:31.426 --> 19:37.171
[SPEAKER_01]: That's going to appeal to a lot of people, but make it unique enough, and special enough that it feels and is luxury.
19:37.191 --> 19:42.116
[SPEAKER_01]: That's a balance, and that's why you need a team to help you to get to that piece of it.
19:42.636 --> 19:51.624
[SPEAKER_01]: The other critical thing that I want to mention is that so much of luxury design, and I'm learning this, even our cabinets are going to be custom made, right?
19:51.644 --> 19:53.526
[SPEAKER_01]: We're not just buying Home Depot cabinets.
19:53.566 --> 19:58.851
[SPEAKER_01]: We're going to have a custom builder make our, you know, our have our cabinets installed and everything and made.
19:58.831 --> 20:02.174
[SPEAKER_01]: That's something that we're actually on the schedule for three months from now.
20:02.535 --> 20:06.879
[SPEAKER_01]: We're already on the schedule, and it's the time where we would be ready for that.
20:07.259 --> 20:13.465
[SPEAKER_01]: That's how busy that this custom builder is that we're on his schedule already, because he's in high demand.
20:13.826 --> 20:17.709
[SPEAKER_01]: He's not the cheapest, not the most expensive, but very, very well respected.
20:17.750 --> 20:18.911
[SPEAKER_01]: He's done work with him before.
20:18.931 --> 20:22.694
[SPEAKER_01]: And he's like, yep, I have one opportunity here in May that I can put you in.
20:22.734 --> 20:24.456
[SPEAKER_01]: It works out with our project schedule.
20:24.977 --> 20:26.458
[SPEAKER_01]: That is critical.
20:26.438 --> 20:33.708
[SPEAKER_01]: Had that not happened, you'd then waiting potentially three more months, just for cabinets, obviously you can't, that's just delays that are in your control.
20:34.109 --> 20:37.413
[SPEAKER_01]: So all of that's being scheduled now ahead of the time, right?
20:37.754 --> 20:44.142
[SPEAKER_01]: The other thing I want to just quickly mention, your designer is going to go in, especially with luxury, like what's your budget?
20:44.223 --> 20:44.823
[SPEAKER_01]: What's your budget?
20:45.424 --> 20:52.194
[SPEAKER_01]: You can spend a crazy amount on appliances, you don't want to, you want to spend the appropriate amount on the appliances that the properties needed and wanted.
20:52.574 --> 20:54.657
[SPEAKER_01]: You also need to be mindful of your budget.
20:54.637 --> 21:00.064
[SPEAKER_01]: So because the GC is managing it with him, we're all in communication.
21:00.165 --> 21:07.515
[SPEAKER_01]: So this communication going back and forth as we build out kind of like a template plan between the designer and the GC on the part of all those conversations.
21:08.156 --> 21:10.959
[SPEAKER_01]: However, that connection in that relationship is important.
21:11.460 --> 21:13.283
[SPEAKER_01]: I headed the time where I get something presented.
21:13.403 --> 21:16.527
[SPEAKER_01]: I don't want to work through all those questions during a meeting.
21:16.828 --> 21:21.234
[SPEAKER_01]: I want that kind of out of the way so we can really make some decisions and move the project forward.
21:21.434 --> 21:22.956
[SPEAKER_01]: That's all I care about.
21:22.936 --> 21:40.022
[SPEAKER_01]: And I think that's important that your team members work well together and that you make those connections so the GC and the designer are in constant communication because he knows he knows our budget, they know design and that's a balancing act in a big, you know, new build that we're doing.
21:40.463 --> 21:48.555
[SPEAKER_01]: So that's really the design side and what the work we're doing right now so that everything's on schedule and we're moving forward effectively and efficiently.
21:48.535 --> 22:04.705
[SPEAKER_01]: So that's strategy number two and then strategy number three I want to mention two and this is the one that gets missed a lot on dress I don't know about you and I know you've done so many projects and we've done so many projects together Is that so many people get so inundated with certain parts of the you know project that
22:04.685 --> 22:08.071
[SPEAKER_01]: They realize next week they're going to be out of cash.
22:08.091 --> 22:09.874
[SPEAKER_01]: That's like you're behind them, right?
22:09.894 --> 22:10.656
[SPEAKER_01]: That's a problem.
22:11.096 --> 22:12.899
[SPEAKER_01]: Especially if you're out of cash, we're not talking $2.
22:13.681 --> 22:15.424
[SPEAKER_01]: We could be talking something in six figures.
22:16.105 --> 22:23.017
[SPEAKER_01]: And I see it time and time again that women that are doing fixed in flips are new construction are realizing these things too late.
22:23.538 --> 22:26.023
[SPEAKER_01]: And that's a lack of cash flow projections.
22:26.363 --> 22:27.385
[SPEAKER_01]: Hands down.
22:27.365 --> 22:28.606
[SPEAKER_01]: And so what does that look like?
22:28.686 --> 22:34.433
[SPEAKER_01]: And I think that's the other thing that you could be doing during delays or during your project planning piece.
22:34.773 --> 22:38.897
[SPEAKER_01]: And I'm constantly looking at, because of the delays, you're adding months.
22:39.498 --> 22:48.808
[SPEAKER_01]: Just to carry my construction loan to carry my different holding costs is at the full amount that I'm borrowing, it's gonna be close to $20,000.
22:49.389 --> 22:53.473
[SPEAKER_01]: So now you break down $20,000 per week per day, quite a bit of money.
22:53.453 --> 22:55.496
[SPEAKER_01]: That's really, it's an expensive nut.
22:56.157 --> 22:57.899
[SPEAKER_01]: However, I need to think that through.
22:57.919 --> 23:00.082
[SPEAKER_01]: I just now got two months of delay.
23:00.322 --> 23:01.264
[SPEAKER_01]: It's going to add two months.
23:01.304 --> 23:03.687
[SPEAKER_01]: What is that going to do to my cash flow projections?
23:04.308 --> 23:07.252
[SPEAKER_01]: So if in five months, I have a gap, I know that now.
23:08.133 --> 23:10.216
[SPEAKER_01]: And I'm managing that, okay, where are we going to get the gap?
23:10.256 --> 23:12.058
[SPEAKER_01]: That's conservatively this.
23:12.839 --> 23:14.682
[SPEAKER_01]: And we're managing that right now.
23:15.283 --> 23:19.849
[SPEAKER_02]: I think a lot of, let me just bring that a lot of thoughts came to my head here.
23:21.044 --> 23:30.720
[SPEAKER_02]: When it comes down to cash flow projections and management, a lot of real estate investors don't know exactly the cost of a delay.
23:31.461 --> 23:36.049
[SPEAKER_02]: Many will understand the cost of the delay when the property sells.
23:36.610 --> 23:40.977
[SPEAKER_02]: And there is a line item left there for their property.
23:41.257 --> 23:46.005
[SPEAKER_02]: What I encourage all of you to do, it is to understand
23:45.985 --> 23:50.710
[SPEAKER_02]: What is the cost of running a project per week?
23:51.270 --> 23:54.013
[SPEAKER_02]: How much you're paying to all your lenders?
23:54.614 --> 24:00.360
[SPEAKER_02]: And then you add taxes, you add insurance, you add everything that is recurring.
24:00.740 --> 24:07.167
[SPEAKER_02]: So you understand how much a week, a single week cost you.
24:08.128 --> 24:11.571
[SPEAKER_02]: That will give you a very clear
24:11.905 --> 24:21.680
[SPEAKER_02]: understanding of how important it is to plan ahead to mitigate risk and a high sense of urgency.
24:21.940 --> 24:33.458
[SPEAKER_02]: When you don't know that number one or two weeks might not mean a lot versus when you know exactly how many zeros each week cost.
24:33.438 --> 24:34.139
[SPEAKER_01]: Absolutely.
24:34.279 --> 24:36.623
[SPEAKER_01]: And even just, it is a single project, right?
24:36.643 --> 24:38.767
[SPEAKER_01]: This is not like 10 condos or 10 buildings.
24:39.228 --> 24:44.236
[SPEAKER_01]: It's a single family home, and I still have a bookkeeper that's supporting me on this project.
24:44.977 --> 24:46.339
[SPEAKER_01]: That is not something I need to be doing.
24:46.359 --> 24:49.725
[SPEAKER_01]: It's looking at income and expenses and all the above.
24:49.705 --> 24:56.355
[SPEAKER_01]: However, having her on the team and having her update or quickbooks in our kind of project plan is critical.
24:56.795 --> 25:02.423
[SPEAKER_01]: And I look at that every time that something is in motion, not look at it every day, that's not necessary.
25:02.744 --> 25:03.925
[SPEAKER_01]: Definitely on a weekly basis.
25:04.606 --> 25:10.294
[SPEAKER_01]: And especially when the contractors saying, okay, we're here, we're requiring XYZ for the next phase.
25:10.755 --> 25:16.303
[SPEAKER_01]: I'm going back to the spreadsheet, and I have found three mistakes on the spreadsheet that he sends me.
25:16.283 --> 25:17.305
[SPEAKER_01]: I've given him too much.
25:17.445 --> 25:18.387
[SPEAKER_01]: One week it was too little.
25:18.828 --> 25:19.991
[SPEAKER_01]: It's looked all different ways.
25:20.572 --> 25:25.121
[SPEAKER_01]: And so I need to keep and it wasn't like he was trying to do anything purposefully.
25:25.582 --> 25:27.326
[SPEAKER_01]: But he put the wrong number in.
25:27.366 --> 25:28.488
[SPEAKER_01]: The dock.
25:29.029 --> 25:30.192
[SPEAKER_01]: And I said, well, this is wrong.
25:30.232 --> 25:30.613
[SPEAKER_01]: I didn't give.
25:30.633 --> 25:32.757
[SPEAKER_01]: This is a Gaby 20k extra.
25:32.737 --> 25:34.720
[SPEAKER_01]: I think that would be great, but that doesn't make any sense.
25:34.780 --> 25:36.383
[SPEAKER_01]: My books are showing this.
25:36.964 --> 25:38.266
[SPEAKER_01]: You're constantly looking at that.
25:38.326 --> 25:40.109
[SPEAKER_01]: Now, my bookkeeper, right?
25:40.249 --> 25:44.436
[SPEAKER_01]: She's inputting the right data for me now to say, okay, where are we?
25:44.536 --> 25:45.838
[SPEAKER_01]: And what have I paid him?
25:46.019 --> 25:47.481
[SPEAKER_01]: Where's the gap?
25:47.521 --> 25:51.508
[SPEAKER_01]: Even if you have a bookkeeper, a GC that knows what they're doing.
25:51.608 --> 25:53.451
[SPEAKER_01]: Professional people working with you.
25:53.471 --> 25:55.494
[SPEAKER_01]: There is a checks and balances.
25:56.035 --> 25:59.200
[SPEAKER_01]: As the project manager, which I see myself that.
25:59.180 --> 26:00.963
[SPEAKER_01]: is critical on a weekly basis.
26:01.063 --> 26:03.066
[SPEAKER_01]: So your numbers are exact.
26:03.767 --> 26:05.009
[SPEAKER_01]: You just can't be general.
26:05.029 --> 26:13.743
[SPEAKER_01]: I don't care if it's a $200,000 rehab or if it's a 1.5 construction budget, you got to be exact and know where your numbers are.
26:14.164 --> 26:15.145
[SPEAKER_02]: Trust it verify.
26:15.246 --> 26:22.437
[SPEAKER_02]: So for all of you that are listening, keeping mind, there are two things that always happen in every single project.
26:22.818 --> 26:26.824
[SPEAKER_02]: One are everything that you can control in
26:26.804 --> 26:29.169
[SPEAKER_02]: And second, the things that you cannot control.
26:29.349 --> 26:38.567
[SPEAKER_02]: And when those happen, the three things that we shared here increase communication with your team members, number two, decision-making.
26:38.847 --> 26:44.819
[SPEAKER_02]: What can you make a decision on that will help you move the project forward?
26:45.360 --> 26:47.023
[SPEAKER_02]: And number three,
26:47.003 --> 26:49.169
[SPEAKER_02]: pulse on your cash flow.
26:49.510 --> 26:51.154
[SPEAKER_02]: Thanks so much for listening.
26:51.174 --> 27:01.061
[SPEAKER_02]: Please share your golden nuggets or one thing that you got out of this podcast with our community and share with a woman that you like to send respect.
27:01.342 --> 27:01.863
[SPEAKER_02]: Thanks so much.
27:02.786 --> 27:03.207
[SPEAKER_01]: Thank you.
27:05.043 --> 27:06.126
[SPEAKER_02]: Thank you for listening.
27:06.386 --> 27:09.995
[SPEAKER_02]: I hope you've found today's conversation valuable.
27:10.015 --> 27:13.644
[SPEAKER_02]: And don't forget to subscribe so you don't miss any future episodes.
27:14.205 --> 27:16.972
[SPEAKER_02]: Make sure this with the women in your life, Benny Sue here.
27:16.992 --> 27:18.917
[SPEAKER_02]: I'll see you next week.
00:00.031 --> 00:04.100
[SPEAKER_01]: You found the deal, you ran the numbers, you negotiated, and you closed.
00:04.541 --> 00:06.164
[SPEAKER_01]: Now the biggest challenge begins.
00:06.665 --> 00:09.992
[SPEAKER_01]: How are you going to keep your construction project on time and on budget?
00:10.534 --> 00:16.146
[SPEAKER_02]: In today's episode, we're going to break down what you have control over and what you don't.
00:16.707 --> 00:20.014
[SPEAKER_02]: And I am interviewing Liz Faircloth.
00:19.994 --> 00:25.864
[SPEAKER_02]: who is currently building a ground up construction value at five million dollars.
00:25.964 --> 00:30.812
[SPEAKER_02]: We're going to tell you exactly what she's doing with the delays that she's facing.
00:31.052 --> 00:35.119
[SPEAKER_02]: So you can also duplicate that if that happens to you.
00:35.519 --> 00:36.501
[SPEAKER_02]: Let's break that down.
00:38.624 --> 00:46.692
[SPEAKER_00]: Welcome to the Real Estate Investor podcast, a top 1% show helping women achieve financial freedom by investing in real estate.
00:47.293 --> 00:50.356
[SPEAKER_00]: And now your host, Liz Faircloth, and Andressica Dellie.
00:50.877 --> 00:59.225
[SPEAKER_02]: So Liz, you are building right now a ground up new construction project of value at $5 million.
00:59.626 --> 01:01.468
[SPEAKER_02]: So let's break that deal down.
01:01.588 --> 01:03.670
[SPEAKER_02]: How did you find it?
01:03.650 --> 01:11.403
[SPEAKER_02]: What's the construction budget and where you add right now and we're going to go over the the challenge is right all the specifics.
01:11.483 --> 01:11.884
[SPEAKER_01]: I love it.
01:11.944 --> 01:18.736
[SPEAKER_01]: So my husband and I met wanted to do a local project for for quite some time and we're in a luxury market.
01:18.956 --> 01:23.464
[SPEAKER_01]: So there's very low supply of property in a very high demand.
01:23.444 --> 01:30.616
[SPEAKER_01]: you have a lot of people coming into the area that are, they're looking for second homes, they're looking for vacation homes, they're looking for kind of weekend homes.
01:31.196 --> 01:37.867
[SPEAKER_01]: And so we started networking with a local realtor, literally she's the top producing realtor in our community, which is new hope.
01:38.428 --> 01:44.558
[SPEAKER_01]: And we just started networking with her, we had a couple meetings with her, kind of sharing some of our criteria, some of what we're looking for.
01:44.538 --> 01:51.647
[SPEAKER_01]: And we wanted to do something that was going to add value, right, to the community, and add value to the supply and demand issue, which we know is a good place to be.
01:52.188 --> 01:56.914
[SPEAKER_01]: And so a couple of weeks after we had our last meeting with her, she shared a project on opportunity.
01:57.215 --> 02:02.461
[SPEAKER_01]: It's along the Delaware River, and it's a property that was sort of obsolete, if you will.
02:02.481 --> 02:03.623
[SPEAKER_01]: It's 1900 square feet.
02:03.883 --> 02:09.951
[SPEAKER_01]: When you walked in literally your head, hit the ceilings, it just wasn't a property that people wanted to probably live in any longer.
02:10.011 --> 02:12.975
[SPEAKER_01]: It was an opportunity to tear it down and then rebuild.
02:12.955 --> 02:18.162
[SPEAKER_01]: We're rebuilding on the river, we about 5,000 square feet, three floors, you know, four bedrooms.
02:18.623 --> 02:26.133
[SPEAKER_01]: The value though is that you're providing a luggery home in a community that desperately wants more of those types of properties.
02:26.613 --> 02:37.748
[SPEAKER_01]: There's about six homes on the river, right where it's, you know, in line, and there's just an opportunity that has, you know, has a great view of the river and has a great view of the tow path, which people bite on and everything.
02:38.082 --> 02:40.826
[SPEAKER_02]: So let's talk about the challenges that you're currently facing.
02:40.846 --> 02:44.671
[SPEAKER_02]: $1.5 million and the ultimate goal, right?
02:44.711 --> 02:48.116
[SPEAKER_02]: I always say that time and budget go ahead to hand.
02:48.677 --> 02:51.200
[SPEAKER_02]: If you screw up one, you screw up the other.
02:51.220 --> 02:54.084
[SPEAKER_02]: They go really parallel to each other.
02:54.605 --> 03:02.837
[SPEAKER_02]: So when it comes down to being control of the time and budget, there are two different ways that we can look at it.
03:03.297 --> 03:06.722
[SPEAKER_02]: What we can control and the things that we can't control.
03:06.702 --> 03:13.972
[SPEAKER_02]: So for this particular project, what have you putting place to be on time and on budget?
03:14.433 --> 03:16.716
[SPEAKER_01]: Yeah, I'm going to share that in before I do that.
03:16.956 --> 03:21.343
[SPEAKER_01]: The challenge for us in moving ahead with this, even though it was a great opportunity.
03:21.643 --> 03:23.225
[SPEAKER_01]: There's a lot of demand for second homes.
03:23.566 --> 03:28.232
[SPEAKER_01]: The biggest challenge on dresser was that Matt and I are still set, we're visionaries, right?
03:28.292 --> 03:31.697
[SPEAKER_01]: And we tend to be more visionary, which you know,
03:31.677 --> 03:36.126
[SPEAKER_01]: in our, as we run projects, as we run different areas of our business.
03:36.587 --> 03:37.689
[SPEAKER_01]: And so I knew that was a gap.
03:37.909 --> 03:44.462
[SPEAKER_01]: So I knew that if this project was going to be on budget and on schedule, I needed to build like an A plus team.
03:44.943 --> 03:46.486
[SPEAKER_01]: And I didn't need like average people.
03:46.566 --> 03:48.049
[SPEAKER_01]: I really needed an A plus team.
03:48.029 --> 03:54.417
[SPEAKER_01]: So that was a new that going in, that that was a liability, if you will, or an opportunity that I need to watch and manage.
03:55.037 --> 04:03.087
[SPEAKER_01]: So the team that we built, starts with your obviously your realtor, because they're the ones, she was the person who sold us the property, she'll be selling the property for us.
04:03.548 --> 04:07.192
[SPEAKER_01]: She's also leading the design of the project as well.
04:07.232 --> 04:09.315
[SPEAKER_01]: And that was critical.
04:09.435 --> 04:17.985
[SPEAKER_01]: I didn't just want to go with the realtor, though, and dress at that, was the kind of person that was very friendly and bubbly and, like, quote-unquote, smiled a lot.
04:17.965 --> 04:28.903
[SPEAKER_01]: And I'm not trying to be mean here, but it's more about her personality style because if I'm more of a visionary and I'm going to be more, you know, bringing a team together, et cetera.
04:28.943 --> 04:30.065
[SPEAKER_01]: I want to see how she drives.
04:30.465 --> 04:33.330
[SPEAKER_01]: I want to see how she drives just her next step.
04:33.370 --> 04:37.977
[SPEAKER_01]: I want to see if she's more of a driver if she's looking forward, kind of a no BS person.
04:38.077 --> 04:40.902
[SPEAKER_01]: And I really like starting myself with no BS people.
04:40.882 --> 04:42.203
[SPEAKER_01]: Quincy, I don't smile.
04:42.264 --> 04:49.792
[SPEAKER_01]: I know that seems like a simple thing, but that was something I was really looking for, and she has that exact personality and she has that exactly of being.
04:50.152 --> 04:53.676
[SPEAKER_01]: She's ahead, she's driving, and that was a really positive thing.
04:53.976 --> 04:59.943
[SPEAKER_01]: With RGC, I also needed a team that was eight comfortable, you know, building on the river.
05:00.203 --> 05:08.172
[SPEAKER_01]: It's not the easiest project to get to, because it's literally down this little road of the toe path, so certain construction vehicles don't
05:08.152 --> 05:09.093
[SPEAKER_01]: to get there, right?
05:09.113 --> 05:11.437
[SPEAKER_01]: So it's not the easiest project from that perspective.
05:11.838 --> 05:20.611
[SPEAKER_01]: I needed a no BSGC who had experienced building on the river, luxury homes, and also wasn't deterred from the challenges that he was going to face.
05:20.711 --> 05:25.418
[SPEAKER_01]: All of this is going to take longer because of the fact that I have to go down the small road.
05:25.398 --> 05:27.401
[SPEAKER_01]: his same type of personality as well.
05:27.461 --> 05:32.910
[SPEAKER_01]: He's much more straightforward, detailed oriented, and driving the project along.
05:32.990 --> 05:35.093
[SPEAKER_01]: I needed that and my core team.
05:35.113 --> 05:44.368
[SPEAKER_02]: I think when you're dealing, when you're building a luxury project or any kind of project to be honest,
05:44.348 --> 05:55.513
[SPEAKER_02]: Really understanding your gap where you're good at, what you bring to the table when it comes down to personality skills and experience, where are the gaps and what the role needs.
05:56.034 --> 06:03.471
[SPEAKER_02]: So for example, in your case, a GC or a Realtor, what type do I need?
06:03.451 --> 06:28.817
[SPEAKER_02]: There because if you have a GC that it's more people oriented and not process oriented you're going to have an issue with the time and the budget for sure right and that that is something that I think people on their estimate investors on their estimate those things and they were like oh we get a long very well we're very friendly I don't need to be friends with everybody that I work with now
06:28.797 --> 06:33.624
[SPEAKER_02]: I will become very friendly if you finish my project on time and on budget.
06:34.546 --> 06:37.911
[SPEAKER_01]: Yeah, it's the way being and it's also the experience level.
06:38.331 --> 06:44.601
[SPEAKER_01]: The fact that my GC built a home on the exact same river that I'm building a home, that's a huge advantage, right?
06:44.621 --> 06:46.023
[SPEAKER_01]: That was a criteria that I had.
06:46.544 --> 06:47.565
[SPEAKER_01]: The realtor,
06:47.545 --> 06:48.986
[SPEAKER_01]: built three condos.
06:49.267 --> 06:56.534
[SPEAKER_01]: It's not necessarily 5,000 square foot home, but she was literally the developer slash realtor on her own projects closer to town.
06:56.874 --> 07:01.279
[SPEAKER_01]: So again, from an experience level, she's not, oh, I heard this from another realtor.
07:01.299 --> 07:02.640
[SPEAKER_01]: She's the realtor and the developer.
07:03.061 --> 07:04.382
[SPEAKER_01]: Again, along the same river.
07:04.462 --> 07:11.789
[SPEAKER_01]: So high experience, strong personality, and it really make it happen in individuals was my, like, bulletproof to be honest.
07:11.909 --> 07:17.535
[SPEAKER_01]: I don't want to have one miss in that.
07:17.515 --> 07:24.309
[SPEAKER_01]: you know, the strong timeline and budget type of approach, which I have learned, however, you still want to see that in your team.
07:24.930 --> 07:26.673
[SPEAKER_02]: You remind me of a project.
07:26.914 --> 07:34.950
[SPEAKER_02]: I build two, two town homes in South Philadelphia and one thing that I completely forgot, but you
07:34.930 --> 07:36.192
[SPEAKER_01]: bring it back for you.
07:36.232 --> 07:37.554
[SPEAKER_02]: I'm bringing it back.
07:37.614 --> 07:39.517
[SPEAKER_02]: I forgot about this lovely project.
07:40.138 --> 07:46.469
[SPEAKER_02]: It was a very cool project when we saw there was a house in a lot and would tear down the house.
07:46.789 --> 07:52.398
[SPEAKER_02]: But right next to it there were three brand new construction, new construction, townhouses.
07:53.280 --> 08:01.613
[SPEAKER_02]: And I went ahead and I looked at who was the architect and who was the GC because I was greatly like.
08:01.593 --> 08:03.075
[SPEAKER_02]: how they did the project.
08:03.535 --> 08:08.921
[SPEAKER_02]: Not that we were going to copy CAD because that would not going to be cool for the restail.
08:09.722 --> 08:14.167
[SPEAKER_02]: However, they knew exactly what work we're doing to work on those projects.
08:14.668 --> 08:16.209
[SPEAKER_02]: We bypass so much time.
08:16.249 --> 08:24.799
[SPEAKER_02]: We bypass so much there and it allow me to create a project that was complimentary to the next door.
08:24.779 --> 08:32.212
[SPEAKER_02]: same level of finishes and I got an opportunity to make it a little bit better based on the tweaks that we did.
08:32.292 --> 08:44.273
[SPEAKER_02]: So working with people that have experienced a ready on literally on the same market that you're looking to build, you bypass so much when it comes down to the learning curves.
08:44.253 --> 08:46.777
[SPEAKER_02]: All right, so those are the things that are controllable, right?
08:46.977 --> 09:04.904
[SPEAKER_02]: However, in real-steered, there are so many things that are out of our control, or it happens, and then how we react to those, to the back on control, we're, continue the progress, I would say, despite any types of delays.
09:05.225 --> 09:12.876
[SPEAKER_02]: So if you can share with me, what are the current challenges that were out of your control and how you are mitigating it?
09:13.008 --> 09:14.590
[SPEAKER_01]: Yeah, and there's been a few, right?
09:14.630 --> 09:25.382
[SPEAKER_01]: We had one that earlier in the project that we didn't think we'd have to get go to the zoning board because it was pretty much you were using the same footprint of the property, literally taking it down to the studs, rebuilding.
09:25.702 --> 09:31.869
[SPEAKER_01]: We were told that we wouldn't have to go to zoning and involve the township from that perspective, and that was completely wrong.
09:31.889 --> 09:33.151
[SPEAKER_01]: We ended up having to do that.
09:33.191 --> 09:35.033
[SPEAKER_01]: So that was a solid.
09:35.013 --> 09:40.243
[SPEAKER_01]: two to three month delay that I had not necessarily enjoyed or liked.
09:40.704 --> 09:46.494
[SPEAKER_01]: However, I did bake in when I originally looked at the project and said, okay, what is the worst case scenario?
09:46.594 --> 09:54.008
[SPEAKER_01]: And I think that's the key to undress a that right now because there's certain things you're being told or that you're not going to need to go to zoning.
09:54.389 --> 09:56.633
[SPEAKER_01]: I like to have the worst case scenario timeline.
09:56.613 --> 10:01.784
[SPEAKER_01]: because if the project works with that timeline because it's going to include money, then you move forward.
10:01.824 --> 10:03.167
[SPEAKER_01]: So I was really conservative.
10:03.207 --> 10:06.655
[SPEAKER_01]: We were really conservative in our underwriting and gave a lot of buffer time.
10:07.296 --> 10:12.968
[SPEAKER_01]: So although I wasn't expecting to have a new go-to-zone, those months were actually baked into my actual projection.
10:12.948 --> 10:30.108
[SPEAKER_01]: The other biggest kind of delays that had been really frustrating, my kids had enjoyed the snow, however, the amount of snow, ice, rain, et cetera, that has, you know, the northeast has found in this lovely season has certainly delayed our team and getting through framing.
10:30.208 --> 10:34.353
[SPEAKER_01]: And so that's kind of, we are done with framing now, just so it can give context everyone.
10:34.714 --> 10:35.715
[SPEAKER_01]: However,
10:35.695 --> 10:36.977
[SPEAKER_01]: getting people out there.
10:36.997 --> 10:46.794
[SPEAKER_01]: It was hard to even get out there because of the toe path and then the, you know, getting the roof on all the things that are real delays that I cannot control being in the Northeast.
10:47.295 --> 10:57.191
[SPEAKER_02]: Real estate projects are full of putting up fires, managing cash flow and making sure you're on time and on budget.
10:57.772 --> 11:01.078
[SPEAKER_02]: But things happen and when you are out of control,
11:01.160 --> 11:01.901
[SPEAKER_02]: What do you do?
11:02.562 --> 11:21.632
[SPEAKER_02]: So, list, tell me exactly what you're doing when, you know what shit, okay, it's the, you know what, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the,
11:21.612 --> 11:33.423
[SPEAKER_01]: Yeah, and I think the biggest mistake that investors make is that often when there are delays outside of our control, we just kind of pause the project or we stop communication with the key people on our team.
11:33.883 --> 11:36.065
[SPEAKER_01]: I increase communication when there are delays.
11:36.245 --> 11:51.619
[SPEAKER_01]: And so strategy number one that I want to recommend is that your meetings with your real-term meetings with your GC, they don't stop during delays.
11:51.599 --> 11:54.882
[SPEAKER_01]: So number one, always have a recurring meeting with your GSA.
11:54.902 --> 11:57.945
[SPEAKER_01]: I have the same time, same day the week, so that's number one.
11:58.065 --> 12:03.170
[SPEAKER_01]: Number two, during that recurring meeting, you go through your agenda even if there are delays.
12:03.270 --> 12:04.712
[SPEAKER_01]: And here's a quick simple agenda.
12:04.732 --> 12:07.734
[SPEAKER_01]: I know, Andrea, we talked to a lot of women in our community.
12:08.175 --> 12:09.216
[SPEAKER_01]: Like, what do you guys cover?
12:09.276 --> 12:10.357
[SPEAKER_01]: What is your agenda, right?
12:10.657 --> 12:14.341
[SPEAKER_01]: You could take my agenda, you can lead it, but these are the things that I cover with our GSA.
12:14.361 --> 12:17.304
[SPEAKER_01]: Number one, what overall progress has been made, right?
12:17.324 --> 12:20.847
[SPEAKER_01]: What's the overall kind of snapshot of where the project is?
12:20.827 --> 12:24.692
[SPEAKER_01]: Obviously, if there are delays, he or she might be saying the same thing week after week.
12:24.772 --> 12:25.473
[SPEAKER_01]: I don't really care.
12:25.813 --> 12:28.917
[SPEAKER_01]: I want to hear where the project is and what we can do, right?
12:29.317 --> 12:30.399
[SPEAKER_01]: That's number one on the agenda.
12:30.419 --> 12:32.902
[SPEAKER_01]: Number two on the agenda is bottlenecks.
12:32.922 --> 12:38.789
[SPEAKER_01]: We use bottlenecks a lot with investor and I typically teach and use that with other teams that I work with.
12:38.809 --> 12:41.873
[SPEAKER_01]: So bottleneck is something that's where people are getting stopped.
12:41.853 --> 12:44.656
[SPEAKER_01]: Right, so if they're getting stopped, obviously a delay is a stop.
12:45.417 --> 12:47.239
[SPEAKER_01]: What are we doing to move through that bottleneck?
12:47.279 --> 12:49.782
[SPEAKER_01]: Are there any ideas or are there any solutions?
12:50.283 --> 12:59.234
[SPEAKER_01]: The other thing that gets covered during bottlenecks is any decisions that we as the owners have to make, anything that we're holding up a decision or a process, right?
12:59.614 --> 13:01.276
[SPEAKER_01]: So those are the things that we cover there.
13:01.556 --> 13:05.481
[SPEAKER_01]: And then the third thing is always like, okay, what are the goals for the week, what are the goals for the next two weeks?
13:05.461 --> 13:07.305
[SPEAKER_01]: where we had it in the next two weeks.
13:07.325 --> 13:16.185
[SPEAKER_01]: So if there is a current weather delay, it's a snow storm, something happens, I at least know what's on this GC's head and he has a plan for the next two weeks.
13:16.205 --> 13:20.756
[SPEAKER_01]: Again, the beautiful part is that you should know what should be happening in the next two weeks.
13:20.776 --> 13:22.660
[SPEAKER_01]: You're asking every week.
13:22.640 --> 13:26.566
[SPEAKER_01]: because you want to make sure they are very clear on their next two weeks.
13:26.987 --> 13:29.290
[SPEAKER_01]: So I make sense it's not just for your own knowledge.
13:29.310 --> 13:30.632
[SPEAKER_01]: You should have a project plan.
13:30.993 --> 13:35.540
[SPEAKER_01]: However, it is to keep your GC honest and also be on the same page.
13:36.121 --> 13:37.363
[SPEAKER_01]: Why thought we were going to be doing this?
13:37.423 --> 13:38.385
[SPEAKER_01]: Why are we delayed there?
13:38.685 --> 13:40.628
[SPEAKER_02]: Can I throw one more thing?
13:40.668 --> 13:40.868
[SPEAKER_01]: Sure.
13:40.888 --> 13:40.989
[SPEAKER_02]: Sure.
13:41.009 --> 13:42.932
[SPEAKER_02]: You're agreeing in writing.
13:44.174 --> 13:47.719
[SPEAKER_02]: In writing does not need to be, but it needs to be like a...
13:47.969 --> 13:48.695
[SPEAKER_02]: Min and meeting.
13:49.259 --> 13:53.170
[SPEAKER_02]: Yes, we're saying what we have agree or not because
13:53.420 --> 13:54.441
[SPEAKER_02]: I don't know about you.
13:54.601 --> 13:59.225
[SPEAKER_02]: I have a good memory and I remember what people have the best memory of anyone I've ever met.
13:59.586 --> 14:03.069
[SPEAKER_02]: I don't like to have that because then I can say you don't.
14:04.270 --> 14:05.131
[SPEAKER_02]: On 1990.
14:05.211 --> 14:07.373
[SPEAKER_02]: No, I have the worst memory.
14:07.433 --> 14:08.894
[SPEAKER_01]: We were wearing well together.
14:08.974 --> 14:10.175
[SPEAKER_02]: You were wearing disclose.
14:10.195 --> 14:11.296
[SPEAKER_02]: You were sitting this.
14:11.757 --> 14:11.977
[SPEAKER_02]: Right.
14:11.997 --> 14:13.438
[SPEAKER_02]: I exhausting.
14:13.698 --> 14:23.427
[SPEAKER_02]: But I think that the goal here is to say, this is what we had agree with.
14:23.407 --> 14:25.211
[SPEAKER_02]: What happened there?
14:25.251 --> 14:29.258
[SPEAKER_02]: Yes, does he or she need a place where to put it?
14:29.459 --> 14:33.727
[SPEAKER_02]: Because you're going to find that jesus are amazing at their craft.
14:34.128 --> 14:36.593
[SPEAKER_02]: Not so good at running a business itself.
14:37.214 --> 14:40.420
[SPEAKER_02]: So it's always make sure that you're not like, oh,
14:40.400 --> 14:43.405
[SPEAKER_02]: being like the mum of the situation, right?
14:43.805 --> 14:48.633
[SPEAKER_02]: I want a leader and what comes out of their mouth needs to match with their action.
14:48.934 --> 14:58.088
[SPEAKER_02]: It just doesn't work when they say one thing and do something else and I totally find with the lace in the sense of it's out of their control.
14:58.509 --> 15:00.552
[SPEAKER_02]: They couldn't have predicted
15:01.342 --> 15:06.450
[SPEAKER_02]: the ordering the windows because you know there is going to be a delay on the window.
15:06.730 --> 15:07.892
[SPEAKER_02]: It's just no brain, right?
15:07.912 --> 15:10.276
[SPEAKER_02]: Everybody knows that that is in construction.
15:10.697 --> 15:16.265
[SPEAKER_02]: So it's always a way to be on the same page when it comes down to communication.
15:16.305 --> 15:25.560
[SPEAKER_02]: One of the biggest mistakes that I've seen is when I understand one thing, they understand something else and then it's a recurring matter.
15:25.540 --> 15:28.925
[SPEAKER_02]: You cannot be a recurring man or when it comes down to communication.
15:29.406 --> 15:32.591
[SPEAKER_02]: Otherwise, the project, it's no doubt.
15:32.771 --> 15:35.776
[SPEAKER_02]: You will be at the lay and it will be an over budget.
15:36.236 --> 15:36.537
[SPEAKER_01]: Yeah.
15:36.557 --> 15:37.198
[SPEAKER_01]: That's a great point.
15:37.258 --> 15:38.941
[SPEAKER_01]: What we have done is we have a shared folder.
15:39.461 --> 15:45.090
[SPEAKER_01]: So as my contractor is updating a budget or requesting a draw or there's something, right?
15:45.210 --> 15:46.412
[SPEAKER_01]: Action that's needed to be taken.
15:46.472 --> 15:49.557
[SPEAKER_01]: He's updating that document in the Google Drive.
15:49.537 --> 15:53.883
[SPEAKER_01]: The other thing that we do have is a shared doc of meeting minutes, so that is something we have put in place as well.
15:54.404 --> 15:55.345
[SPEAKER_01]: And that's just helpful.
15:55.445 --> 15:59.031
[SPEAKER_01]: So we're all in the same page and we're not having to regurgitate things.
15:59.091 --> 16:03.337
[SPEAKER_01]: So we've been talking about underpinning the property for the last month, something's off.
16:03.357 --> 16:03.497
[SPEAKER_01]: Right?
16:03.517 --> 16:07.783
[SPEAKER_01]: If you're literally talking about the same thing with no progress, something is always off.
16:08.284 --> 16:13.571
[SPEAKER_01]: And so then you have to get to that root cause of what's happening here, that why we keep talking about the same thing.
16:13.591 --> 16:14.953
[SPEAKER_01]: You should be talking about new things.
16:14.973 --> 16:15.855
[SPEAKER_01]: There should be new challenges.
16:15.875 --> 16:18.278
[SPEAKER_01]: There should be new problems.
16:18.258 --> 16:24.007
[SPEAKER_02]: One thing that I always do when I am, I have my phone open on the Google Drive.
16:24.408 --> 16:33.803
[SPEAKER_02]: So as we are going through the meeting, I start taking notes there inside the document versus what did I talk about?
16:33.783 --> 16:36.428
[SPEAKER_02]: Listen, I have almost some out of that project.
16:37.049 --> 16:42.940
[SPEAKER_02]: I will not hold space in my head about all the line items that we discussed it.
16:43.040 --> 16:50.174
[SPEAKER_02]: So, for all of you having on the cloud, you can access immediately and just put a bullet points there.
16:50.755 --> 16:53.400
[SPEAKER_02]: What is the task, who owns a task by when?
16:53.440 --> 16:55.183
[SPEAKER_02]: That's all you need.
16:55.163 --> 17:00.671
[SPEAKER_01]: When you face it the way that's out of your control, here's what you can do to still move the project forward.
17:01.311 --> 17:05.057
[SPEAKER_01]: So the biggest thing that we've been spending time on, Andresa, is the design side.
17:05.537 --> 17:17.053
[SPEAKER_01]: This is a 5,000 square foot property, luxury property that the design of this property is critical to the success of selling this property to the end user.
17:17.033 --> 17:20.019
[SPEAKER_01]: That was another gap I had to be perfectly frank and dress.
17:20.500 --> 17:21.302
[SPEAKER_01]: I'm a lot of things.
17:21.342 --> 17:23.286
[SPEAKER_01]: I have a lot of wonderful qualities.
17:23.546 --> 17:31.042
[SPEAKER_01]: I have so many we can go on for the rest of the day, but you know designing a luxury property wouldn't be probably top of the list.
17:31.062 --> 17:31.623
[SPEAKER_01]: Would you say that?
17:31.824 --> 17:33.507
[SPEAKER_01]: And dress is a fair thing to
17:33.487 --> 17:34.849
[SPEAKER_01]: say about your friend Liz.
17:35.550 --> 17:38.715
[SPEAKER_01]: I don't have like the best like oh my god this needs to go with this.
17:38.815 --> 17:40.678
[SPEAKER_01]: I usually put things wrong together.
17:40.698 --> 17:45.445
[SPEAKER_01]: Now you'd be like Liz you're the developer of a luxury new build doesn't that concern you?
17:45.966 --> 17:49.411
[SPEAKER_01]: It's a gap I need to manage and that's how you have to think of it as a leader.
17:49.451 --> 17:54.178
[SPEAKER_01]: So I knew I would need to hire a design team if you will to really help
17:54.158 --> 17:55.760
[SPEAKER_01]: with that piece of it, which is critical.
17:56.201 --> 18:01.047
[SPEAKER_01]: The good news is that when I did a lot of walkthroughs to hire my GC, I wanted to see the design.
18:01.387 --> 18:02.629
[SPEAKER_01]: And I asked him, who designed this?
18:03.009 --> 18:04.471
[SPEAKER_01]: Did you, was this your idea?
18:04.511 --> 18:06.213
[SPEAKER_01]: Was that the designer's idea?
18:06.233 --> 18:07.295
[SPEAKER_01]: It's like we didn't have a designer.
18:07.395 --> 18:08.316
[SPEAKER_01]: I designed this house.
18:08.717 --> 18:13.703
[SPEAKER_01]: And it was, you know, a fairly well put together even larger project that I'm doing, luxury build.
18:13.683 --> 18:18.853
[SPEAKER_01]: So I knew my GC had some design experience, however, this is a $5 million home.
18:19.193 --> 18:24.343
[SPEAKER_01]: I didn't want to just lean in only that my GC was going to design this house.
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[SPEAKER_01]: I want another flair.
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[SPEAKER_01]: I want another team member that's literally that's their job.
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[SPEAKER_01]: That was important to me.
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[SPEAKER_01]: my realtor also has a design company.
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[SPEAKER_01]: So it's her and another person that that was the team.
18:36.066 --> 18:40.936
[SPEAKER_01]: And so what they started to do and what they're going to be presenting with us is they've been working hard behind the scenes.
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[SPEAKER_01]: It's not just finishes on dressa, it's not just appliances.
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[SPEAKER_01]: That's important.
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[SPEAKER_01]: But there's certain layouts that are getting constructed because we're
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[SPEAKER_01]: you know, we're just about done with framing.
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[SPEAKER_01]: So there's the kitchen layout.
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[SPEAKER_01]: How's the kitchen going to be laid out?
18:53.580 --> 18:58.068
[SPEAKER_01]: You know, obviously we've architectural plans, but there's some room for kind of design, if you will.
18:58.488 --> 19:06.302
[SPEAKER_01]: The second thing of the puzzle is obviously your appliances, your finishes, and you taught me this undressa.
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[SPEAKER_01]: What are other people, you know, you don't want to just copy finishes or copy appliances, but there's a certain level of appliances that are expected in a $5 million home, then there is in a $200,000 home.
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[SPEAKER_01]: That's pretty obvious.
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[SPEAKER_01]: However, you need to know what is going to be useful and helpful for an end user that I don't know yet.
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[SPEAKER_01]: I'm not custom building this house for an owner that I'm working with right now.
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[SPEAKER_01]: So I have to make something
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[SPEAKER_01]: That's going to appeal to a lot of people, but make it unique enough, and special enough that it feels and is luxury.
19:37.191 --> 19:42.116
[SPEAKER_01]: That's a balance, and that's why you need a team to help you to get to that piece of it.
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[SPEAKER_01]: The other critical thing that I want to mention is that so much of luxury design, and I'm learning this, even our cabinets are going to be custom made, right?
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[SPEAKER_01]: We're not just buying Home Depot cabinets.
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[SPEAKER_01]: We're going to have a custom builder make our, you know, our have our cabinets installed and everything and made.
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[SPEAKER_01]: That's something that we're actually on the schedule for three months from now.
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[SPEAKER_01]: We're already on the schedule, and it's the time where we would be ready for that.
20:07.259 --> 20:13.465
[SPEAKER_01]: That's how busy that this custom builder is that we're on his schedule already, because he's in high demand.
20:13.826 --> 20:17.709
[SPEAKER_01]: He's not the cheapest, not the most expensive, but very, very well respected.
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[SPEAKER_01]: He's done work with him before.
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[SPEAKER_01]: And he's like, yep, I have one opportunity here in May that I can put you in.
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[SPEAKER_01]: It works out with our project schedule.
20:24.977 --> 20:26.458
[SPEAKER_01]: That is critical.
20:26.438 --> 20:33.708
[SPEAKER_01]: Had that not happened, you'd then waiting potentially three more months, just for cabinets, obviously you can't, that's just delays that are in your control.
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[SPEAKER_01]: So all of that's being scheduled now ahead of the time, right?
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[SPEAKER_01]: The other thing I want to just quickly mention, your designer is going to go in, especially with luxury, like what's your budget?
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[SPEAKER_01]: What's your budget?
20:45.424 --> 20:52.194
[SPEAKER_01]: You can spend a crazy amount on appliances, you don't want to, you want to spend the appropriate amount on the appliances that the properties needed and wanted.
20:52.574 --> 20:54.657
[SPEAKER_01]: You also need to be mindful of your budget.
20:54.637 --> 21:00.064
[SPEAKER_01]: So because the GC is managing it with him, we're all in communication.
21:00.165 --> 21:07.515
[SPEAKER_01]: So this communication going back and forth as we build out kind of like a template plan between the designer and the GC on the part of all those conversations.
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[SPEAKER_01]: However, that connection in that relationship is important.
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[SPEAKER_01]: I headed the time where I get something presented.
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[SPEAKER_01]: I don't want to work through all those questions during a meeting.
21:16.828 --> 21:21.234
[SPEAKER_01]: I want that kind of out of the way so we can really make some decisions and move the project forward.
21:21.434 --> 21:22.956
[SPEAKER_01]: That's all I care about.
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[SPEAKER_01]: And I think that's important that your team members work well together and that you make those connections so the GC and the designer are in constant communication because he knows he knows our budget, they know design and that's a balancing act in a big, you know, new build that we're doing.
21:40.463 --> 21:48.555
[SPEAKER_01]: So that's really the design side and what the work we're doing right now so that everything's on schedule and we're moving forward effectively and efficiently.
21:48.535 --> 22:04.705
[SPEAKER_01]: So that's strategy number two and then strategy number three I want to mention two and this is the one that gets missed a lot on dress I don't know about you and I know you've done so many projects and we've done so many projects together Is that so many people get so inundated with certain parts of the you know project that
22:04.685 --> 22:08.071
[SPEAKER_01]: They realize next week they're going to be out of cash.
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[SPEAKER_01]: That's like you're behind them, right?
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[SPEAKER_01]: That's a problem.
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[SPEAKER_01]: Especially if you're out of cash, we're not talking $2.
22:13.681 --> 22:15.424
[SPEAKER_01]: We could be talking something in six figures.
22:16.105 --> 22:23.017
[SPEAKER_01]: And I see it time and time again that women that are doing fixed in flips are new construction are realizing these things too late.
22:23.538 --> 22:26.023
[SPEAKER_01]: And that's a lack of cash flow projections.
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[SPEAKER_01]: Hands down.
22:27.365 --> 22:28.606
[SPEAKER_01]: And so what does that look like?
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[SPEAKER_01]: And I think that's the other thing that you could be doing during delays or during your project planning piece.
22:34.773 --> 22:38.897
[SPEAKER_01]: And I'm constantly looking at, because of the delays, you're adding months.
22:39.498 --> 22:48.808
[SPEAKER_01]: Just to carry my construction loan to carry my different holding costs is at the full amount that I'm borrowing, it's gonna be close to $20,000.
22:49.389 --> 22:53.473
[SPEAKER_01]: So now you break down $20,000 per week per day, quite a bit of money.
22:53.453 --> 22:55.496
[SPEAKER_01]: That's really, it's an expensive nut.
22:56.157 --> 22:57.899
[SPEAKER_01]: However, I need to think that through.
22:57.919 --> 23:00.082
[SPEAKER_01]: I just now got two months of delay.
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[SPEAKER_01]: It's going to add two months.
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[SPEAKER_01]: What is that going to do to my cash flow projections?
23:04.308 --> 23:07.252
[SPEAKER_01]: So if in five months, I have a gap, I know that now.
23:08.133 --> 23:10.216
[SPEAKER_01]: And I'm managing that, okay, where are we going to get the gap?
23:10.256 --> 23:12.058
[SPEAKER_01]: That's conservatively this.
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[SPEAKER_01]: And we're managing that right now.
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[SPEAKER_02]: I think a lot of, let me just bring that a lot of thoughts came to my head here.
23:21.044 --> 23:30.720
[SPEAKER_02]: When it comes down to cash flow projections and management, a lot of real estate investors don't know exactly the cost of a delay.
23:31.461 --> 23:36.049
[SPEAKER_02]: Many will understand the cost of the delay when the property sells.
23:36.610 --> 23:40.977
[SPEAKER_02]: And there is a line item left there for their property.
23:41.257 --> 23:46.005
[SPEAKER_02]: What I encourage all of you to do, it is to understand
23:45.985 --> 23:50.710
[SPEAKER_02]: What is the cost of running a project per week?
23:51.270 --> 23:54.013
[SPEAKER_02]: How much you're paying to all your lenders?
23:54.614 --> 24:00.360
[SPEAKER_02]: And then you add taxes, you add insurance, you add everything that is recurring.
24:00.740 --> 24:07.167
[SPEAKER_02]: So you understand how much a week, a single week cost you.
24:08.128 --> 24:11.571
[SPEAKER_02]: That will give you a very clear
24:11.905 --> 24:21.680
[SPEAKER_02]: understanding of how important it is to plan ahead to mitigate risk and a high sense of urgency.
24:21.940 --> 24:33.458
[SPEAKER_02]: When you don't know that number one or two weeks might not mean a lot versus when you know exactly how many zeros each week cost.
24:33.438 --> 24:34.139
[SPEAKER_01]: Absolutely.
24:34.279 --> 24:36.623
[SPEAKER_01]: And even just, it is a single project, right?
24:36.643 --> 24:38.767
[SPEAKER_01]: This is not like 10 condos or 10 buildings.
24:39.228 --> 24:44.236
[SPEAKER_01]: It's a single family home, and I still have a bookkeeper that's supporting me on this project.
24:44.977 --> 24:46.339
[SPEAKER_01]: That is not something I need to be doing.
24:46.359 --> 24:49.725
[SPEAKER_01]: It's looking at income and expenses and all the above.
24:49.705 --> 24:56.355
[SPEAKER_01]: However, having her on the team and having her update or quickbooks in our kind of project plan is critical.
24:56.795 --> 25:02.423
[SPEAKER_01]: And I look at that every time that something is in motion, not look at it every day, that's not necessary.
25:02.744 --> 25:03.925
[SPEAKER_01]: Definitely on a weekly basis.
25:04.606 --> 25:10.294
[SPEAKER_01]: And especially when the contractors saying, okay, we're here, we're requiring XYZ for the next phase.
25:10.755 --> 25:16.303
[SPEAKER_01]: I'm going back to the spreadsheet, and I have found three mistakes on the spreadsheet that he sends me.
25:16.283 --> 25:17.305
[SPEAKER_01]: I've given him too much.
25:17.445 --> 25:18.387
[SPEAKER_01]: One week it was too little.
25:18.828 --> 25:19.991
[SPEAKER_01]: It's looked all different ways.
25:20.572 --> 25:25.121
[SPEAKER_01]: And so I need to keep and it wasn't like he was trying to do anything purposefully.
25:25.582 --> 25:27.326
[SPEAKER_01]: But he put the wrong number in.
25:27.366 --> 25:28.488
[SPEAKER_01]: The dock.
25:29.029 --> 25:30.192
[SPEAKER_01]: And I said, well, this is wrong.
25:30.232 --> 25:30.613
[SPEAKER_01]: I didn't give.
25:30.633 --> 25:32.757
[SPEAKER_01]: This is a Gaby 20k extra.
25:32.737 --> 25:34.720
[SPEAKER_01]: I think that would be great, but that doesn't make any sense.
25:34.780 --> 25:36.383
[SPEAKER_01]: My books are showing this.
25:36.964 --> 25:38.266
[SPEAKER_01]: You're constantly looking at that.
25:38.326 --> 25:40.109
[SPEAKER_01]: Now, my bookkeeper, right?
25:40.249 --> 25:44.436
[SPEAKER_01]: She's inputting the right data for me now to say, okay, where are we?
25:44.536 --> 25:45.838
[SPEAKER_01]: And what have I paid him?
25:46.019 --> 25:47.481
[SPEAKER_01]: Where's the gap?
25:47.521 --> 25:51.508
[SPEAKER_01]: Even if you have a bookkeeper, a GC that knows what they're doing.
25:51.608 --> 25:53.451
[SPEAKER_01]: Professional people working with you.
25:53.471 --> 25:55.494
[SPEAKER_01]: There is a checks and balances.
25:56.035 --> 25:59.200
[SPEAKER_01]: As the project manager, which I see myself that.
25:59.180 --> 26:00.963
[SPEAKER_01]: is critical on a weekly basis.
26:01.063 --> 26:03.066
[SPEAKER_01]: So your numbers are exact.
26:03.767 --> 26:05.009
[SPEAKER_01]: You just can't be general.
26:05.029 --> 26:13.743
[SPEAKER_01]: I don't care if it's a $200,000 rehab or if it's a 1.5 construction budget, you got to be exact and know where your numbers are.
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[SPEAKER_02]: Trust it verify.
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[SPEAKER_02]: So for all of you that are listening, keeping mind, there are two things that always happen in every single project.
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[SPEAKER_02]: One are everything that you can control in
26:26.804 --> 26:29.169
[SPEAKER_02]: And second, the things that you cannot control.
26:29.349 --> 26:38.567
[SPEAKER_02]: And when those happen, the three things that we shared here increase communication with your team members, number two, decision-making.
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[SPEAKER_02]: What can you make a decision on that will help you move the project forward?
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[SPEAKER_02]: And number three,
26:47.003 --> 26:49.169
[SPEAKER_02]: pulse on your cash flow.
26:49.510 --> 26:51.154
[SPEAKER_02]: Thanks so much for listening.
26:51.174 --> 27:01.061
[SPEAKER_02]: Please share your golden nuggets or one thing that you got out of this podcast with our community and share with a woman that you like to send respect.
27:01.342 --> 27:01.863
[SPEAKER_02]: Thanks so much.
27:02.786 --> 27:03.207
[SPEAKER_01]: Thank you.
27:05.043 --> 27:06.126
[SPEAKER_02]: Thank you for listening.
27:06.386 --> 27:09.995
[SPEAKER_02]: I hope you've found today's conversation valuable.
27:10.015 --> 27:13.644
[SPEAKER_02]: And don't forget to subscribe so you don't miss any future episodes.
27:14.205 --> 27:16.972
[SPEAKER_02]: Make sure this with the women in your life, Benny Sue here.
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[SPEAKER_02]: I'll see you next week.
