Chances are, you’ve caught one of the now-famous HGTV shows about house flipping. It’s usually a couple or friends who have little to no previous experience with general construction, design or real estate – and sometimes it shows! Projects go over budget and often-times material choices don’t make sense for rental applications. Let’s talk about some realistic ways to maximize the ROI on your Commercial Property – with the help of a General Contractor like Rubicon Contractors
Creating a Project Timeline
Creating a realistic project timeline is one of the first steps in any commercial construction project – whether it is a small-scale renovation or a start-to-finish job. A general contractor like Rubicon Contractors can meet with you and assist with everything from the design to blueprints, material sourcing and then construction. Develop a realistic timeline with your general contractor and ask lots of questions about how they will stick to it. This will keep your costs in line, helping make the ROI or return on investment in the black.
Don’t Pay Upfront
One of the biggest pitfalls we see, especially in small-scale construction projects, is when general contractors demand full payment upfront prior to work completion. Make sure to build in benchmarks and discuss approving work in stages and offering payment in stages to incentive your general contractor to stay on-track and on-budget.
Choose The Right Materials
It’s not just time that can cost money – materials can end up pushing your project over-budget, fast! We often see a client’s initial wish-list include glamorous materials they have seen elsewhere. These “show” materials may look good on paper but you need to think carefully about your project. How will the materials wear over time? What type of tenants do you have in these commercial buildings and will it be harder to maintain over time? Yes, we want your project to look good, but we also want it to last – so you don’t have to keep reinvesting over time.
If you want to discuss more ways to keep your investment sound or want to discuss Rubicon Contractors as your general contractor, reach out today.