The first time I flipped a foreclosed project, I was so excited. We looked at this burned out building. We realized that given the property values in that area and given the price of materials and labor, we can make a handsome profit.
It turns out that our initial plans did not pan out. Believe me, it’s not for lack of trying nor is it lack of intelligence or advanced planning. The problem was, there was a lot of waiting time involved. This is especially true in really busy economic times.
Currently, in the United States, there is a massive economic upturn. There’s simply a lot of demand for labor and a lot of demand for deliveries. This stretches delivery times. We were completely clueless regarding this during a past economic upturn.
So we bought the property on time. We got it at the best price at the best interest rate. We also lined up buyers, believe it or not. Everything was set in place but there’s only one thing missing – the actual logistics.
It turned out that the logistical nightmares really got in the way of profitability because when you are waiting around, people get really bored and some of these people get so bored that they take alternative jobs. And those alternative jobs, take up more and more of their time. Sooner or later, they stop showing up.
I’m sure you don’t need me to explain the impact of this on the viability and success of your project. It really was quite sad because regardless of our best laid plans, regardless of how well we have anticipated other issues, we couldn’t quite get over this problem.
Finally, after flipping homes for about the six to ten times, we discovered that by making the foreclosure project site fun, we can minimize subcontractor turnover. In other words, instead of these people getting bored out of their heads because they have nothing else better to do, when we let them ride Segway machines, they stick around long enough for the materials to come and for them to do a good job.
Do yourself a big favor. Learn from my mistake. Have fun working on your foreclosure project by riding the kind of Segway UK fans love. When you have these Segway devices available, people can scoot around the place while they’re waiting for their turn to work on a particular section of the project. They can also scoot around while they’re waiting for materials to get delivered.
Whatever the cause of the delay may be, when people‘s attention are properly diverted, or you’re using some sort of helpful distraction, you will be able to tap into people’s productivity when you need it, where you need it. You see how this works?
Do yourself a big favor and make sure you have the right equipment so you can make your foreclosure project more successful.