When it comes to real estate investing, your focus is likely on finding deals and raising capital. However, one aspect that is sometimes overlooked but is critical to the success of a project is construction. Relying solely on a property management company or a general contractor for construction oversight can result in issues and delays, as Nighthawk Equity discovered early on. This is why we decided to take matters into our own hands and create our own in-house construction company.
Monitoring New Construction
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Laser Sharp Focus
One of the main reasons for going in-house is that it allows you to focus 100% on the portfolio. When working with a general contractor, you may have other jobs going on, which can result in a lack of attention and even complications if something unexpected arises. By having our own construction company, Nighthawk is able to have more control and oversight over our projects and monitor construction.
Shifting as Your Project Grows
However, getting to this point was not without its challenges. Initially, we relied on our property management company to handle construction. That worked for a while. But as the projects grew in size and complexity, we realized we needed more expertise and oversight. Bringing in a general contractor helped with one project, but managing multiple projects in different locations became too complex and required a full-time construction manager.
Take Control
This is what led us to create our own construction company, giving us more flexibility and control over our projects. Instead of paying a property manager for construction oversight, we could use that budget to pay for our own construction manager. We were able to oversee numerous contractors with the help of one project manager, who also made sure that projects were finished on schedule and within budget.
Construction was initially a secondary consideration for Nighthawk, but we soon realized its significance. By creating our own construction company, we were able to take control of this critical aspect of our business and ensure that their projects were completed to our standards.
Finish Your Project to Your Standards
As a multifamily investor, it's important to keep in mind the role that construction plays in the success of a project. While it may seem like an afterthought, having an in-house construction team can make all the difference in the world. You can guarantee that your projects are finished to your standards and within budget by exerting more control and oversight over them. As we learned, monitoring new construction by going in-house was the game changer that allowed us to take our business to the next level. It might be for you as well.
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