Construction Management 

Constructions Management Framework

1. Define your investment criteria:

   • Determine your budget, desired property types (e.g., single-family homes, multi-unit buildings), and target neighborhoods in Philadelphia.

   • Identify your investment goals, such as desired cash flow, return on investment, and time frame.

2. Research Philadelphia real estate market:

   • Study the local market conditions, including property values, rental rates, vacancy rates, and neighborhood trends.

   • Analyze historical data and future projections to make informed investment decisions.

3. Secure financing:

   • Explore financing options, including conventional loans, hard money loans, private lenders, or partnerships.

   • Prepare necessary financial documents and meet with potential lenders to secure financing for the acquisition and rehabilitation phase.

4. Identify target properties:

   • Utilize online platforms, real estate agents, and local resources to find suitable properties that meet your investment criteria.

   • Conduct thorough property evaluations, considering factors such as location, condition, potential repairs, and market value.

5. Perform due diligence:

   • Conduct a comprehensive property inspection, including a professional inspection and assessment of repair costs.

   • Verify property title, zoning regulations, and any potential liens or encumbrances.

   • Review property tax history and any outstanding obligations.

6. Calculate the numbers:

   • Determine the property's after-repair value (ARV) based on market comparables and projected repairs.

   • Calculate the expected expenses, including acquisition costs, renovation costs, holding costs, property management fees, and contingencies.

   • Assess the potential rental income and estimate cash flow.

7. Acquire the property:

   • Make an offer and negotiate the purchase price with the seller or their agent.

   • Finalize the purchase agreement and secure the property through escrow or a title company.

8. Rehabilitate the property:

   • Create a detailed scope of work for the renovations, considering both cosmetic and structural improvements.

   • Obtain necessary permits and hire reliable contractors or oversee the renovations yourself if qualified.

   • Manage the renovation process, ensuring quality work within the allocated budget and timeline.

9. Find tenants and rent the property:

   • Develop a marketing strategy to attract potential tenants, such as online listings, signage, or working with a property management company.

   • Screen prospective tenants rigorously, including background checks, credit checks, and income verification.

   • Sign lease agreements and collect security deposits before the tenants move in.

10. Refinance the property:

    • Monitor the property's market value and local financing conditions to determine the optimal time for refinancing.

    • Compile all necessary documents, including renovation receipts, lease agreements, and financial statements.

    • Approach lenders and apply for a refinance loan based on the property's new appraised value.

11. Repeat the process:

    • Assess the financial outcomes of the BRRRR project and determine if it meets your investment goals.

    • If successful, use the refinanced funds to repeat the process and acquire additional properties or reinvest in the existing property portfolio.