Archive for the ‘Real Estate Investment’ Category

Part III: The Relationship

January 11, 2010

By Jerry R. Spumberg
The DIY Coach

If you read the previous articles of this series, you will remember my mentioning of Mike Holmes, Tom Silver, and Norm Abrams, their years of experience, and their desire to share their knowledge with others. The word teacher comes to mind.  One of my woodworking teachers was a gentlemen by the name of Ernie Conover.  He said to me one day that he has been a good woodworker for many years, but it is only after twenty years of teaching that he has become a good teacher.  He was being modest.  He is a great teacher!   And I completely agree with what he said.

Teaching requires experience, desire and patience.  It most importantly requires the understanding that sometimes you have no choice but to let the apprentice make mistakes.  The teacher’s responsibility is to teach the Why and How, to advise what he thinks best for the client, and to encourage the client to research a decision with diligence. The final decisions should be made by the client. This is why I like the descriptive term Coach.  This is the first part of the relationship.

The next part is sometimes difficult or at lest humbling for a successful builder or contractor who has had the final word when he ran his own company.  A Coach must accept that part of this relationship is more similar to that of an employee (the coach) and employer (the client).  It is important for the client to accept his responsibilities as owner.  In return, the Coach, as his employee, must be committed to a work ethic and the moral responsibility of what is in the best interest of the client.

It is my personal belief that without having an on-site presence, as needed during the construction, design and costing process, I would be delinquent in carrying out my duties.  Unless a client has a professional building background, it would be difficult, if not impossible, to have a successful project without the availability of a coach’s support from beginning to end.  I don’t believe in coaching from the distance or over the internet as a viable alternative to working side-by-side with a client as needed.  As a builder who had supervisors working for me, I still went to each project, inspecting and offering help as well as doing everything possible to facilitate a successful and timely completion.  Availability  by both parties is important to the relationship.     

Throughout the design stage, the coach’s responsibility is to advise the client so they define and set achievable goals that become plans and specifications for their project.  Some used to call this “value engineering”.  I rather think of it as a custom suit that fits right.  The next step is for the Coach, with any resources the client may have, to request proposals for the project from trades people and vendors to develop the preliminary budget.  If the project is within budget or slightly above, additional bidding and negotiating takes place to achieve a quality project at the right price point.  If the project is substantially above what the client wishes to spend, specifications may have to be adjusted as well as the plans.  One way of speeding up this process is to develop alternate specifications and plans and have options that are priced separately during the early design stage.

Throughout the above process (or shortly after it has been completed), the client and the Coach must discuss the construction process and how responsibilities will be divided.  In my experience, the client has almost always assumed the administration work that includes bookkeeping, purchasing, payments and entering into contracts.  I advised them on the methods I used for myself for the above and how and why I did so. They decided what would best work for them.

The day-to-day activities on site are usually my responsibility, with some assistance from the client.  The client and I also decide what labor I will perform and that which they will assist with or perform themselves.  Depending on the project, the availability of the client, volunteer help from family and friends, and the desire of the client to perform work, the amount of physical labor the client contributes to the project can be labeled as being “fully immersed”, “specific aspects only”, or “mostly administrative”.  I have worked on projects where the client and myself preformed almost all the work.  I have also supervised projects where almost all of the work was performed by subcontractors and others that lie in the middle.  The most important point for many clients is the final cost.  Remember, by eliminating a general contractor or builder, you are eliminating their markup for overhead and profit.  Go to our web site thediycoachusa.com and click onto the links to trade publications that discuss this cost to find out how much this is.

One of the prerequisite for performing any specific aspect is the equipment required.  In addition, the consideration of the client’s skill or the ability of learning the skill to perform the work required is discussed as well as how long it will take.  All costs are then developed and compared with the use of a trade-specific subcontractor.  I then help the client examine his objectives and goals, voice my opinion, and let him give me direction on how to proceed.  Any problem or issue with any subcontractor or vender is dealt with the same way.

I’ve tried to talk about how things generally work between Coaches and clients.  However, I have not talk about what a successful relationship is.  First of all, it is one of mutual respect.  I would expect that a client would not hire a person they did not respect.  I’m sure an ethical Coach would not work for anyone for the same reason.  The client should respect the Coach for his qualifications and people skills.  The Coach needs to respect his clients for their moral integrity and recognize that they are really the only ones who know what they want to accomplish.  A coach must understand that it is the client’s money being spent.

I don’t start out by saying either party should be looking to become friends.  However I do say that it’s extremely difficult not to like someone that you work with when there is mutual respect and commitment.  When working side by side, people very often have no choice at the end of the project but to be a little sad that it’s ended.  Friendship sometimes just happens.  So what should a Coach be in their relationship with you?  Should they be your home improvement teacher, master builder and carpenter, project manager, scheduler and coordinator, purchasing agent, construction adviser, building inspector/permit expediter?  Yes they should.  However, it is equally as important that you have confidence in them as your trusted advisor and for them to trust you to be straight forward with them.  The right relationship with the right Coach will give you a well-managed successful project that meets your goals, expectations and objectives.        

May The Coach Be With You,
Coach Jerry

Part II: The Requirements For A Coach

January 11, 2010

By Jerry R. Spumberg
The DIY Coach 

If some one is going to teach you the how and the why to accomplish a home improvement projects, you will need to qualify them as an expert.  Whether the project is basic home maintenance, repairs, remodeling, an addition, a deck, or building a home from the ground up, the expertise should be at lest equal to the scope of the project.  The question to ask the applicant is simple: What qualifies you for my project? The correct answer is not so simple!

There are people  that are my television heroes,  such as Mike Holmes, Tom Silver and Norman Abrams, who’s knowledge and practical experience have been built over many years, over a multitude of projects and countless challenging situations. What I find most interesting about professionals that love what they do is that they are life time learners as well as teachers.  

There is no one that is an expert in every single aspect of building, including my TV heroes. However, they know the right questions to ask and how to find the answers. There are some of us that have expertise in multiple trades and have a excellent general knowledge of the others. The most important trait in these people is they understand how every aspect of home building fits together.  The first thing that I would be looking at to evaluate a DIY Coach would be their background irregardless of the scope of the project.  I would also look for them to explain how they know the right questions to ask and when do they call in specialists?

If they have a web site, do they show a history and examples of their work?  What is the scope of their projects?  You should be looking for someone that has both the depth and breath of experience that  encompasses the projects you’re planning to consider. Do they have a flexible business model that meets your needs?  Are they teachers whose methods place the clients first and where costs are transparent?  Is there side by side evolvement when required?  Do they explain in detail the working relationship and do they have a contract?  Is it in plain English, that is detailed and reflects the representations made during their presentation?  Are they willing to give you references?  Does your gut feeling tell you that they will watch your back or that most of their concern is their own self interest?  

A few examples of the practices of my business, ”The Do It Yourself Coach, LLC.” are the following:

  1. We are available on an hourly bases as needed.
  2. The relationship is similar to an employer (the client) and an employee (the Coach).
  3. The client can terminate the relationship at any time.
  4. The Coach may not receive any gifts, commissions or kickbacks from vendors or subcontractors.
  5. We encourage the client to provide venders and subcontractors that they may know to participate in competitive bidding with other sources we might recommend.
  6. The client always makes the final purchasing decision.
  7. We strongly suggest a client does not begin a project until the bidding is as complete as possible for projects (emergency repairs sometimes are an exception).
  8. There is a small retainer and billing proceeds as the work progresses.
  9. No large advanced payment is required.
  10. Our rates are similar to handyman services.
  11. Everything is clear and defined in our contract.

There are many simple repairs and maintenance items that can be taught to you by a experienced handyman.  If you wanted to install cabinets or crown and classical built-up moldings, a finish carpenter/woodworker could best fit your needs.  I strongly recommend that if you have an electrical, plumbing, or heating problem that you feel even slightly uncomfortable with, the calling of a licensed expert may save you a lot of grief and maybe injury.

Many items can be self taught but to get professional results requires a learning curve that can be frustrating, time consuming, and costly if you make a mistake.  If you watch the television show Holmes on Homes you will learn that even people who call themselves “pros” as well as DIYers can really mess up a project.   A Coach can shorten the learning curve and still save you money.  They can ensure that things get done right by overseeing everyone, including professional subcontractors.

The items I just mentioned above require the learning of trade skills and can give you a great sense of accomplishment, be enjoyable, and add more value to your house then you spend when upgrading.  Learning to maintain your house helps maintain its value and will save you costly repairs in the future.

For more complex projects that may include finishing a basement, remodeling and expanding a kitchen, adding a bathroom, whole house remodeling, or building a house from the ground up, you need a DIY Coach.  They can teach and direct you in the administration and business aspects of the project.  This includes purchasing, bookkeeping, budget development, and project development including plans, specifications, bidding practices, contracts, scheduling, and cash flow needs.  He will teach and help you understand how all of the pieces fit together in addition to trade skills.  He will bring years of experience and knowledge of best practices to supervise and coordinate your project.  He will do those parts of the project that you don’t have the time, knowledge, skills, or tools for.  He will help you decide when it’s best to use subcontractors.

A final smart tip from my father, who was one of my teachers: “You can tell much about a journeyman by his tools. The quality, condition, and the variety”.  When I look in my tool box or bucket I see a pair of channel lock pliers that my dad gave me many years ago.  Hand tools that represent the best designs in the last hundred years and power tools that are professional grade.  All have been maintained.  My shop is on our web site; have a look. A great coach should own the right  tools he needs to do his job.

Without the investment that I made in tools and machinery, I could not be an adequate DIY Coach.  Of course this collection was built over my career as a builder and contractor.  However every time I find a jig that makes doing things easier, I buy it and learn how to use it, so I can teach it to clients.  This represents my commitment to my clients when we say; “We’ll do it for you or with you. You can do it for yourself but, you don’t have to do it by yourself”.     

Is it all worth it? Please go to our web site thediycoachusa.com  and read about “9 Home Improvement Facts That Can Save You A Bundle of Dollars” and ”Planning and Objectives”.  You decide! It’s not about luck, it’s about knowledge!  Here’s to success on your next project.

May The Coach Be With You,

    Coach Jerry

Part I: When Or Why You Need A Remodeling Coach

January 11, 2010

By Jerry R. Spumberg
The DIY Coach

Lets first talk about a Master Builder in the terms of some of those on TV that I most respect, Mike Holmes, Tom Silver, and Norm Abrams. They have years of experience working in the industry in a family business before they owned their own. Besides the hands on experience, they have a scholarly knowledge of building that is up to date. They have developed many additional skills that they perform, thus qualifying them to be called professionals. To them, TV is just a media to share their knowledge with others.

The most import thing is that they understand that a building is made up of many components, some of them complex. They know the assembly order of the components, how they relate, and how they must fit together. They use the best methods to do this and call it building. They have also learned and developed techniques that are extremely effective in producing quality results. They efficiently use time as a precious resource not to be wasted. Finally, they have practiced and refined their methods over many years, first as apprentices under watchful eyes, then journeymen, and now as masters. They continue to improve their skills as they practice and teach by learning new techniques and sharing them with others. These are true builders.

With their background, they know what can go wrong. They have the ability to recognize an existing problem and implement a solution before it becomes a catastrophe or a defect that requires a costly remediation at a later date. You might think I’m talking about a major remodeling project. I’m not. It could be as simple (or not so simple) as picking the best method for installing ceramic tile and correcting any deficiencies in the underlying floors or walls.

To determine whether you need professional guidance is to ask several questions. Do you want professional results? Do you have the knowledge to pick the right materials and methods needed? Do you have sources to buy at the right price? Watch out for seconds, low grade, or surplus materials, and prices too cheap to be real. Can you tell the difference? Do you have the knowledge to recognize and correct underlining problems that will affect the visual and longevity of the project as well as its performance? Do you own or are willing to rent the professional tools that you will need to get good results? Do you have the time to be patient with yourself, realizing it will take you much longer then a professional? Have you developed the skill and techniques? If you have never done this work before by working with an expert, you will have to go through a learning curve – are you willing to due this? Are you qualified?

If you answered yes to the above questions and you think the project is something you will enjoy, go forward. If you’re not sure, you need professional advice, a person with years of experience, to look at your choices and risks. A Do It Yourself Coach will cut the learning curve to a fraction of what it takes to teach yourself and will help you decide the best direction to take. He may even suggest subcontracting parts of the project out and will teach you how to do that. A Coach is a qualified person that could be a relative, a friend, or a professional that you hire. A person like myself, with years of diversified experience in building, can save you from making costly mistakes and even make you money ensuring you achieve professional results. Remember that most television DIY shows show a professional guiding or assisting the do it yourselfer. Visit our teaching web site thediycoachusa.com to learn more about saving money and achieving professional results.

I could spend the rest of the article telling you about a couple who claimed to be great do it yourselfers on a social internet site. They remodeled their bathroom to include a platform whirlpool tub that had a glass enclosure for showering. They bought a closeout whirlpool at one of the big box retailers. The pump was in the wrong location, thus there was no access to it. It did not have a ground fault circuit breaker or wasn’t on a separate correctly-sized electric line as required by code. The corner unit was such that it could not be installed in such a way that the water from showering or just splashing from the tub could be prevented from leaking below into the ceiling of the dining area below. The solution will be to remodel the entire bathroom over.

Here’s the kicker! I was brought in to diagnose the problems not by the couple that performed the work, but the recent purchaser of the home. They found out that no building permits were taken or inspections were made; they have hired an attorney to take legal action against the previous owner.

A coach can do it for you or with you. He can educate the How and explain the Why. He can make sure you comply with building regulations so you don’t face the consequences later. He can make you money by adding more value to you home than you spend. He can integrate his resources with yours so that you can find the best materials and subcontractors at the right price point for your project. He can teach you to legally protect yourself through the use of your own agreements with venders and trades people. He can ensure that you end up with a project that meets your expectations. He puts you in control.

There are many Do It Yourselfers who have developed the skills to handle projects without a coach. I admire them. In many cases, they have a friend or family member who are Master Builders that they can lean on and may have worked for or with them from time to time. If you wish to add more value to your home then you spend, then being involved is the only way to go. When you use a general contractor, you will usually add 60 to 80% of value for every dollar you spend. You don’t make money. Please go to our web site thediycoachusa.com to learn the How and Why to do it better. Visit the links to trade articles about value vs. cost and mark-ups. If this isn’t important to you then hire the best general contractor you can find – not the cheapest.

I believe if you are willing to put in some time and effort, you can tackle any size Home Improvement Project with a little help.

May The Coach Be With You,
Coach Jerry

May The Coach Be With You – A Five Part Series

January 11, 2010

Part I:  When or why you need a remodeling coach.

Part II: The requirements for a coach ( due early November)

Part III: The relationship (due mid November)

Part IV: What a Coach should be able to do for you depends on the project (due end of November)

Part V: Finding a Coach