Rehabbing Profits for the Flip & Hold Investor€¦ · Rehabbing Profits for the Flip & Hold...
Transcript of Rehabbing Profits for the Flip & Hold Investor€¦ · Rehabbing Profits for the Flip & Hold...
Rehabbing Profits for the
Flip & Hold Investor
Presented by Rob Swanson
Real Estate Investor & Educator
Learn My Proven Step-by-Step System and
Exactly How You Can Rehab Houses for Profit
www.reiEducationProducts.com
Rehabbing vs. Investing
• Rehabbing: Fixing houses
• Rehabbing: Construction
• Investing: Investing for profits
• Investing: Finding, Funding, Closing, Planning, Budgeting, Managing & Selling
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Before the Closing
• Inspections / Walk-through
– Major mechanicals
– Electrical
– Roof
– Structural (foundation, joists & beams)
– Health hazards (radon, asbestos, mold)
• Financing
• Insurance (builders-risk vs landlord policy)
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Planning
• A good plan is the key to a successful rehab project, both in time and money saving results
• Helps you
– Stay on time
– Stay on budget
– Maintain quality
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Immediately After the Closing
• Secure the Property
– Change the Locks
– Cover the windows
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The Preliminary Inspection
• Walk-up
• Walk-around
• Walk-through
• Goal: Project planning, determining what to repair & estimate your general budget
Should Take Between 10 & 15 Minutes
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The Walk-up
• Roof & roof lines
• Windows
• Garage door
• Driveway
• Sidewalks
• The neighborhood
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The Walk-around
• Roof & gutters
• Windows
• Landscape
• Drainage
• Siding
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The Walk-through
• Room-by-room
• Odor
• Wall texture
• Windows
• Flooring, under-floor
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Top 4 Rehab Tips to Increase Value
• Trim, fixtures & lighting
• Fancy front door adds curb appeal
• Walk-through flow to create extra space
• Consistency throughout
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Step-by-step Rehabbing
Step 1
• Define the project
– Major items
– Property flow
– Usable space
– How people live
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Step-by-step Rehabbing
Step 2
• Solicit & hire your contractor
– GC or subs
– Line item bid or phased bid
– Timeframe
– Budget
– Incentives & bonus
– Payments & lien waivers
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Step-by-step Rehabbing
Step 3
• Secure the property
• Buy materials
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Spend Less Profit More
Tip #1
• Negotiate and price shop materials
Excess, returned and out of production items can often be bought at pennies on the dollar. Find the builder / contractor liquidation warehouse locations in your area.
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Step-by-step Rehabbing
Step 4
• Start the demolition
– Understand weather & time of year
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Tip #2
• Complete your entire demolition before construction starts
This is generally just a timing, schedule issue, but will save a lot of overlapping conflict as the project takes shape.
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Step-by-step Rehabbing
Step 5
• Roof, Windows & Siding
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Step-by-step Rehabbing
Step 6
• Plumbing, Heating & Cooling (HVAC)
– Check the work with a top out inspection
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Step-by-step Rehabbing
Step 7
• Framing, Structural & Subfloors
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Step-by-step Rehabbing
Step 8
• Tile & Hardwood Flooring
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Step-by-step Rehabbing
Step 9
• Walls, Sheetrock / Drywall
– Consider a skim coat vs new walls
– Seek uniformity and consistency
– Mobile vs truck mounted equipment
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Step-by-step Rehabbing
Step 10
• Texture & Painting
– Primer or light 1st coat
– Texture / wall repair
– Paint options
• Flat Nonreflective – hides imperfections
• Satin, washable, yet not too shiny
• Semigloss, cabnits, trim, doors and millwork
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Tip #3
• Begin early marketing plan
After the drywall, texture and paint is complete, many times you can begin marketing your property. At this point, it’s clean and looking new.
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Step-by-step Rehabbing
Step 11
• Kitchens & Baths
– Counters / sink
– Clean
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Tip #4
• Appliances
Returned, slightly damaged and dented appliances can be a great cost saver / value adder.
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Step-by-step Rehabbing
Step 12
• Punch list incomplete or repair items
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Step-by-step Rehabbing
Step 13
• Carpet Installation
– Heavier pad with rental grade carpet
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Step-by-step Rehabbing
Step 14
• Clean-up & detail interior
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Step-by-step Rehabbing
Step 15
• Site clean-up & landscape
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Step-by-step Rehabbing
Step 16
• Marketing the property
– Let experts do what they do
– Market the property yourself
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Step-by-step Rehabbing
Step 17
• Showings, feedback, minor repairs
Sell or Rent the Property for Profit
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What to Buy: Knowing Your Options
• Minor rehab, basic repairs
• Major renovation
– Standard
– Specialized
• Structural & Environmental
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What’s a Good Deal?
• Determine the ARV
• Properly estimate your repairs
• Evaluate sales activity
• Separate distressed from retail comps
• Understand price pocket direction
Remember, Price Cures All - Usually
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Where to Find Your Deals
• Direct & Target Marketing
• Referrals
• Real Estate Agents
• Banks & Liquidation Companies
• Attorneys & Other Professionals
• Real Estate Wholesalers
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Spend Less Profit More
Tip #5
• Price it right and sell it quick
I have never met an investor that lost money taking a profit. Don’t let greed get in the way of lower risk and quicker profits.
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Get Your Free Rehab Forms
To get your FREE rehab forms, please visit:
www.reiEducationProducts.com/rehabforms
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