Many of the problems (often misunderstandings) we encounter can often be mitigated with complete transparency.
With this idea, also comes a process in how to best convey your information.
In the real estate world, construction can be one of biggest culprits for creating issues.
Every contractor/architect operates differently, lots of money can be involved, there are countless outlets to place blame ranging from manufacturers to the delivery teams.
Tons of gray areas, you need to remove as many of them out of the equation as possible.
For us- that means we pay for material costs and process payments upon the (verified) completion of work.
It's one of the first things mentioned if it's a new relationship and something we're certain to include in all agreements.
If they can't adopt this model, they likely won't be a good fit for us.
Why?
When we veer away from our standardized process- the more we open ourselves up to unknowns.
Cut out those what if's by being transparent about your process.
This applies to operations as well.
We distribute property operating reports, bank statements, and bulleted thoughts about performance on a monthly basis.
This process allows everyone to see what we made (or lost) that month, property updates, and the actual dollar amounts in the accounts.
Same page.
If you're not hitting your projections, you can't hide.
If you are, great, that was the plan.
Regardless of performance, it's crucial that everybody is well informed about what could go well, what could go terribly wrong, and how you're working to avoid the landmines that exist within the latter.
Avoid surprises with complete transparency.
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