investing
Rip off my new business model that has 8 “Profit Pockets”
Monday, August 29th, 2011 | Real Estate Investing | No Comments
What I am about to share with you IS EXTREMEMLY ADVANCED.
Over the past 6 months I’ve experienced a BRAND NEW, SEVEN FIGURE, BUSINESS BREAKTHOUGH….and now that it’s proven, I want to tell you all about it.
********************
DISCLOSURE
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This is intended for the most serious real estate professionals only.
If you are not seriously striving to create a business that generates 1M dollars or more in revenues, then do not attend this class.
If you are lazy and don’t like to work, then do not attend this class.
If you don’t have any resources or money (or no way to get it), then do not attend this class.
Reason is, what I’m about to share with you is going to take a little work, some money (not a lot but some), resources and time.
BUT if you are the right type of person, this is what you’ve been looking for.
So let me tell you who this IS for.
If you have been a real estate investor for at least 3 years and have done at least 25 transactions – THIS IS FOR YOU.
If you are a real estate agent with at least 5 years’ experience and have done at least 35 transactions – THIS IS FOR YOU.
This material will most likely “go right over the heads” of all newbies who have never done a deal.
This Wednesday I’m holding two live webinars where I will reveal to you my newest Real Estate Business and Profit Model.
What’s so important about this model is that there are at least 8 different “Profit Pockets” that make you money in this model.
In the past 30 days I have profited from each of these 8 different “Profit Pockets” and you can to…….IF you set up your real estate enterprise the way I’m about to show you.
In the month of September, I anticipate making 6-figures or more by having this business model work for me.
Register for the Wednesday 2pm ET class here.
https://www2.gotomeeting.com/register/941932082
Register for the Wednesday 9 pm ET class here.
https://www2.gotomeeting.com/register/487535066
I will also be giving away “Systems Process Maps” that explain in stunning VISUAL detail EXACTLY how to set up these “Profit Pockets” in your own business to all those who attend.
While other real estate professionals are getting out of the business mine is flourishing. See how!
JOSH
P.S. This is NOT a launch of a new product and there won’t be anything to buy after this class is over.
I simply want to show you how you can set up a real estate enterprise like this for yourself.
It’s so powerful I had to share it with you as soon as the model was proven. NOW IT IS!
Pick a day and time and jump on this advanced training class.
Register for the Wednesday 2pm ET class here.
https://www2.gotomeeting.com/register/941932082
Register for the Wednesday 9 pm ET class here.
4 Signs of a Depressed Housing Market
Wednesday, August 17th, 2011 | Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
For the second year in a row, residential housing construction failed to contribute to growth in the US. The demand for building permits fell, new home construction starts are down, and the foreclosure pipeline is as full as ever. As a result, banks are keeping a tight fist on mortgage lending standards. There are four main indicators that we can look to and determine that we’re still in a pretty significant housing slump:
- Fewer New Home Permits – Last month, there number of new homes under construction was at the lowest rate since 1970. Single-family home construction fell by nearly 5%, whereas apartments and townhouses rose by nearly 8%.
- Falling Demand – Increasing foreclosures are keeping real estate values down. As a result, builders have little incentive to put up more houses in an already flooded market.
- Strict Credit Standards – Getting a mortgage for the average homeowner remains tough. One of the reasons, according to the banks themselves, is there is “reduced or unchanged demand from creditworthy borrowers.”
- Weak Stock Futures – Uncertainty in overseas markets have economists nervous, especially following the recent S&P credit downgrade. The Treasury’s 10-year note fell to 2.27%, from 2.31%. The import index was down .3% in June.
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Meet Our SREC Student of the Month, Peter Gorski
Friday, July 29th, 2011 | Real Estate Investing, Uncategorized | No Comments
We’re proud to spotlight SREC Coaching Student of the Month, Peter Gorski. Peter joined our coaching program about two months ago, and has already been realizing some tremendous results! Peter attended our 2-day SummerFest high-end student mastermind event last week, and had a tremendous experience. As a gift for being chosen Student of the Month, Peter was invited to stay for two additional days of mastermind with the Maverick/Master’s Elite/Board of Advisors students.
Here’s what Peter had to say about his experience:
“I first wanted to say that I had one hell of a time at SummerFest. It was like no other event that I have been to before. It blew them all away. I was super excited to meet the SREC students, as well as your team, and I had no clue what to expect on Thursday going into the event. Everyone was so very nice to me and to the others, and that is very important to me because it makes me feel welcomed and part of your team vs. others. I’m no one to them but just a name on a list.
You put on one hell of an event and I’m looking forward to the next one. I have to make it to the top and
now, due to SREC, there is nothing holding me back.”
I want to share the story of Peter’s journey before SREC and since joining SREC with you, in his own words:
Closing Costs on the Rise
Wednesday, July 27th, 2011 | Real Estate Investing | No Comments
Origination fees. Title fees. Appraisals. Title insurance. Survey charges. Even postage. All these fees add up to the total cost of homeownership for the potential buyer. While we know those additional costs are there, did you know they are on the rise?
On average, the origination fees (underwriting, processing) from lenders have increased over 10% from last year, up to an average of over $1,500. Third party fees (appraisals, title, postage) have increased nearly 8%, to an average of nearly $2,500. These fees don’t even include property taxes, recording fees and homeowner insurance.
So what’s to blame for this increase? Lenders are saying it’s due to the more tightly controlled mortgage regulations from the government. The strict regulations means more staffing and more resources, which is a cost that is passed along to the borrower. There are now extra steps that the lenders have to follow in the process, more forms to fill out. Lenders are being careful not to do anything that would draw attention from Freddie Mac and Fannie Mae, who now have no tolerance for missing documents or paperwork errors.
Are any of these fees negotiable? Some are and some are not. Lender fees and title insurance rates are certainly negotiable, so it pays to shop around. While things like appraisals and credit report fees are not. It’s up to the consumer to ask the right questions and obtain a GFE – good faith estimate – from at least 3 mortgage brokers and 3 banks.
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Note Buying Mastery
Friday, June 24th, 2011 | Bank owned, Foreclosures, Real Estate Investing, Uncategorized | No Comments
Hey, Josh Here,
Did you miss my friend Chris Gleize’s “Be the Bank” webinar last night? If you did, you’re in luck, because you can check it out here… it’s really some awesome stuff, so sit back, grab a pen and get ready to take on a new opportunity in real estate investing! You can also learn more at www.noteswithjosh.com.
Learn More at www.noteswithjosh.com
Investors Rule the West Coast
Wednesday, June 15th, 2011 | Bank owned, Foreclosures, Real Estate Investing, Real estate short sales | No Comments
If you’re a real estate investor on the West coast, you’re sitting in a great position these days. Why? Because according to ForeclosureRadar, “third-party investors are reselling foreclosure properties they’ve scooped up at auction at a rapid pace in states along the country’s western seaboard,” including California, Arizona, Nevada, Washington, and Oregon. Here’s the best part – investors are moving distressed homes faster than banks are.
ForeclosureRadar tracks foreclosures and auction activity in the states listed above, and has seen one consistent statistic in all those states in May – a decrease in the amount of time investor’s need to sell properties purchased at foreclosure auctions. For example, in Arizona, investors were able to sell properties in 95 days, versus 150 days for banks. In California, it took just 134 days, versus 227 for banks. Similar numbers were seen in Nevada, Washington and Oregon.
The reason for this gap is that investors have “become better at turning a foreclosure into a marketable property that attracts buyer interest,” according to the CEO of ForeclosureRadar.
To read more, click here.
To learn more about kicking your real estate investing into high gear, it’s easy to get started – just click on the “Click here to gain access” button in the box to the right – “Join Josh on the 4 Strategies That Create An Instant Cash Infusion Online Event.”
3 Strategies to Make Money Now in Real Estate Investing
Friday, June 3rd, 2011 | Bank owned, Foreclosures, Real Estate Investing, Real estate short sales, Short Sales, Wholesale properties | 1 Comment
If you want (or NEED) to make money right now, then I’m going to show you the easiest, fastest and safest way to cash your next check in real estate in as little as 30 days, and repeat that process again and again. You’ll discover three very simple and very proven ways to make $500 to $20,000 for every deal you do. The best part is you won’t need…
- Money (or have to beg others to borrow it).
- Credit (or qualify for any bank loans, whatsoever).
- Experience (this is easy, and you can start immediately).
- Time (2 to 3 hours average per deal is all it takes).
These strategies are super simple; you can do this with zero experience:
- If you can find a house with no equity– which isn’t hard to do… You can do this!
- If you can find a buyer who can’t get a bank loan– which isn’t hard to do… You can do this!
- If you can find a house headed for foreclosure – which isn’t hard to do… You can do this!
- If you can find a short sale investor in your town – which isn’t hard to do… You can do this!
And get this… You won’t EVER need to take ownership of a property (you’ll NEVER take ownership of a home if you don’t want to — you make money connecting the dots!). You can make a substantial and consistent income as a real estate investor and you’ll never need to buy or take ownership of a property. EVER!
Here’s what we know:
- Today’s housing market and economy are a total mess.
- There are way too many houses on the market with no equity.
- Banks aren’t lending, even to qualified applicants.
- The strategies for making money in real estate take too long.
So how can you and I take advantage of this real life scenario? I’ve perfected these three easy strategies you can put into action for an Instant Cash Infusion. Anyone can do this, from anywhere, with only a few hours of time each week, starting with nothing, no money, no credit – just connect buyers and sellers and you will regularly cash $500 – $20,000 checks.
The 3 Instant Cash Fusion Strategies are:
1. Convertible Equity Option Assignments
- House is paid off OR has lots of equity.
- These typically need a lot of work.
- Sign “Option Contract” for $42,000.
- Record “Notice of Option” in public record at courthouse.
- Sell your option for $47,000 to rehabbers, who are easy to find at the local foreclosure auction.
- Release Option and Collect a $5,000 “option release” fee from the new buyer.
Equity Option Assignments are simple and the easiest to explain. Here’s an example from my investor friend Justin from Cincinnati: He finds a house in probate after talking with a few attorneys. The house is in shambles. The executor says he’ll sell it for $22k. Justin finds a buyer for $32k. Justin pockets $10k without ever owning a home and without a bank involved.
2. Short Sale Option Assignments
Seller Lead:
- In default with no equity.
- Sign “Option Contract” with seller.
- Record “Notice of Option” in public record at courthouse.
- Sell your option to another short sale investor.
- Release Option and Collect a $500 – $5,000 “option release” fee.
If you can find a house in foreclosure -which isn’t hard to do, get an option on the house and then sell your option to another short sale investor in your area who is willing to wait the 4-7 months to cash the big checks – who are everywhere – you can do this and you can collect a $500 to $5,000 check in the process And the best part of all is that short sale investors are excited to have bird dogs like you bring them deals.
3. Convertible Master Lease Option Assignments – This is the one that’s most exciting to me.
Seller Lead:
- No Equity & No Default
- Remember there are 20 million of these leads out there
- Sign “Option Contract” for whatever they owe
- Record Notice of Option in public record at courthouse
- Sell your option to lease option buyer
- Buyer puts $3-5% down and makes payments
- Release Option and Collect a $3,000 – $20,000 “option release” fee
- OR
- Sandwich “Option” – Cash Now, Cash Flow, Cash Out
These strategies are super simple; you can do this with zero experience:
- If you can find a house with no equity– which isn’t hard to do… You can do this!
- If you can find a buyer who can’t get a bank loan– which isn’t hard to do… You can do this!
- If you can find a house headed for foreclosure – which isn’t hard… You can do this!
- If you can find a short sale investor in your town – which isn’t hard… You can do this!
- This works fast. You can be driving in leads for sellers and for buyers within 24 hours, and it works in almost any market
- If you’re new investor, this is your golden ticket!
- And if you have experience and need to fix your cash flow problems, here’s your answer.
Most investors are just throwing away these deals because they have little or no equity, not knowing they are hidden treasures! To learn how you can tap into these goldmines, or to kick your own real estate investing efforts into high gear, click here .
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Top 5 Keys to Understanding Private Lending
Friday, June 3rd, 2011 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing, Real estate short sales, Short Sales | 1 Comment
Private lending is the absolute key to unlocking the door to successfully completing real estate deals. Why would you want to use a private lender? You are able to get money from individuals more easily, more cheaply and on better terms than you can from institutions. In real estate, where you may only need short-term money, the door to borrowing from institutions may be locked. What do we mean by private lending? Private lenders are individuals who will loan money on a one-to-one basis, often from their retirement accounts, for various types of investments. Borrowers sometimes secure more than one loan for their projects if the first private lender is willing to make the loan but doesn‘t have enough liquid cash to provide the entire amount needed. The demand for private money outweighs the availability, unless you know how to look for it. However, you have to make sure that you are careful in how you work with private lending. If you do it wrong, you are going to screw things up and will have a host of problems and chaos.
1. Know the Lender’s Concerns – There are three main things that are important for lenders in a private lending scenario:
- They want a smooth, simple transaction – be sure you can easily and clearly explain the purpose of the loan.
- They want to make sure the principle, the amount of money they are loaning, is going to be adequately protected.
- They want to know their rate of return – a function of both points and time; their overall return after legal fees, title work and lost opportunities.
How will the principal be protected? How will the principal be paid back? What is the anticipated profit? When will that be paid? Is there enough profit to make it worthwhile for both the lender and the borrower? The lender‘s job is to ask those questions.
The lender needs to vet the borrower and make sure this deal will happen. If you as a borrower can address those concerns up front and outline the deal in detail, before the private lender even has to ask, you take a load off his or her shoulders. Prove on paper that the deal makes sense, that it will perform and that it will close.
2. Know the Title Company’s Concerns – Whether you are the borrower or the lender in any private lending transaction, think carefully about the terms and respect the people that are instituting those terms. The title company is responsible for coordinating the transfer of property and the exchange of funds, and will want:
- Money to be wired to them or brought by way of a cashier‘s check, bank check or certified funds.
- Closing instructions from the private lender.
- Escrow instructions signed by all the parties involved (how they need to execute their tasks, handle the money and what their duties and responsibilities are for each party to the transaction.) The closing instructions will come from the lender, who is indicating under what terms they‘ll release their funds so that the transaction can go forward.
3. Knowing the Attorney’s Concerns – Most of the time, the responsibility of getting the correct paperwork in place for a privately funded transaction is going to fall upon the private lender and the private lender‘s attorney. Private lenders need to make sure that they have an attorney who understands these types of transactions; they are different. Anything and everything can be negotiated, and the attorney needs to understand what was worked out between the borrower and the lender.
- Loan and Real Estate Documents – Promissory note, mortgage, deed.
- Payment Documents – Closing instructions, projected payment history, accurate payment schedule and loan history.
- Business Documents – Personal guarantee, business-to-business agreements.
5. Knowing the Private Borrower’s Concerns – All private lenders should understand the issues that borrowers have to consider. They need access to the money. They wouldn‘t be looking to borrow money if they didn‘t need it, and they generally need it relatively quickly and easily. So access to money is their first concern. Are they getting access to someone with money to loan, and is that access something that can be responsive to their needs?
- Borrowers want a smooth, simple transaction.
- The money is there and can easily be applied to the task at hand.
- Borrower’s need to understand the private lender’s terms.
- Set up a win-win situation.
6. Putting Private Money into Motion – “He who has the gold makes the rules.” Private lenders make an important contribution to real estate investing. They make it possible. If you want to make a lot of money, you need to know how a private lender fits into the mechanics of your deal.
- Understanding do’s and don’ts of advertising for private money.
- Long-term or rehab deals.
- Quick turn or “flip” deals.
Here I’ve really just touched on what is involved in private lending for real estate investing. It is an integral part of successful investing, and if you know how to navigate the world of private lending, you’ll have access to a wider range of investing opportunities.
To learn more about private lending, or to kick your own real estate investing efforts into high gear, click here .
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8 Steps to Successful Wholesaling
Friday, June 3rd, 2011 | Bank owned, Foreclosures, Real Estate Investing, Short Sales, Wholesale properties | No Comments
Wholesaling properties is a fantastic way to get into real estate investing with little or no money. On paper, the process is simple: find a bargain property, get it under contract and sell to a bargain buyer. That buyer will either buy the property to rehab and sell, or buy the property to rehab and use as a rental. By learning how to wholesale, the new investor will learn many essential skills that are crucial to building a successful real estate investing business.
So as a wholesaler what kind of money can you make? Remember, you’re going out getting the lead, locking up the property and then finding a buyer. What you’re not doing is taking the risk of owning the property . . . along with the risk of rehab, managing contractors, finding tenants, or taking a risk betting on the market. For your role in wholesaling property, you will be paid on average anywhere from $5,000 to $15,000 per transaction. Count on making about 10-20% of the value of the property you are wholesaling. Of course, this depends on your market and the quality of the deal. At SREC we’ve seen plenty of transactions where we made less, as well as plenty of transactions where we made more, but $5k-$15k is an accurate range.
There are eight main steps to building a successful wholesaling business:
- Marketing – If you don’t have a plan to get a steady stream of leads month after month, then you risk falling into the same feast and famine trap that often afflicts those in the real estate business. When investors fall into a pile of cases, they usually get so focused on what they have in hand that they stop advertising. Once those initial transactions have closed, there’s nothing to follow. You need to put a plan in place made for the market where you are going to be doing business.
- Property Evaluation – Learn how to buy right, and you’ll have no problem getting transactions done because bargain buyers will want what you have to offer. You need to evaluate the street scene, the Seller and the property. At times, it will be hard to stick to the numbers because you’ll want to do the best you can for the Seller. At the same time you need to be aware that you don’t want the Seller’s problem –– the house –– to become your problem because you paid too much and have limited your exit strategies. Buy cautiously, buy smart, and stick to your numbers.
- Making an Offer – Making the offer is something that good investors work toward from the initial buy call. Each investor has their own way of getting the information they need to make a decision. Likewise, each investor has their own way to approach a Seller with the offer. Some are methodical in setting expectations throughout the process and will make an offer over the phone after the appointment, but only after they’ve done extensive research and have contacted potential buyers. Others like to get out to the house, meet with the owner, and do it face-to-face so that they can lock up the deal fast. Some investors like to have their exit strategy in place before they get the house under contract, that way they can be sure to meet the expectations they have set with the Seller. Others like to lock the property up first using the contract, and then determine the exit strategy trusting that their buyers list will come through for them.
- Negotiating – Two simple rules: 1) If you’re not embarrassed by your offer, then you’re offering too much; and 2) If you make an offer and the Seller jumps at it, you’ve probably left money on the table. For you to be a successful real estate wholesaler, you have to leave the majority of the profit to your buyer. Your buyer is taking the risk: You need to make sure that you are helping to set up that buyer for success, not failure. Remember, when focusing on wholesaling, you’re not looking to hit home runs, but many singles, doubles and even a few triples. The wholesale business is a volume business, so set it up accordingly
- Securing the Contract – Some investors have been known to get the contract signed at the first appointment while others take more time and like to get the paperwork finished at their office. There’s no rule here, it all depends on how you want to run your business. Be sure that copies of the contracts, addendum and other associated paperwork be given to the Seller for their records. If at the first appointment the seller is willing to sign a contract for your offer price (or a slightly higher negotiated price) then by all means sign the contract at the first appointment. Then send them a copy after you get back to the office and have a chance to make copies.
- Finding the Buyer – If you don’t have a buyer, then you don’t have a transaction . . . at least one that’s going to put money in your pocket. If you are planning to build a business that uses wholesaling as its primary exit strategy, then you will need to cultivate a list of buyers. Building a huge buyers list of hundreds of buyers will not happen overnight, but if you commit to networking locally and using Internet marketing strategies, you will cultivate a buyers list that you can use time and again when you have properties to sell.
- Assigning the Contract – Another name for wholesaling is “assignment,” in that you “assign” the contract to a bargain buyer that will close on the property. Draft an addendum that protects your interest so that you can collect your fee. While you can get paid outside of closing (P.O.C.), you will want most of your assignment fees and profits to be paid out at closing off of the HUD1 from the title company as a way to avoid any misunderstandings should the deal fall out. Likewise, each buyer should be vetted. The degree that you dive into someone else’s work is up to you. In this industry, never take anyone at face value.
- Seller Communication – Keep the Seller informed every step of the way. If you’ve changed your mind about wholesaling the property and instead wish to buy it to rehab and sell or keep as a rental, tell them. Remember all they want is for the house to sell. If, as a wholesale deal you find an end buyer, tell them. If the buyer falls out, tell them. Make sure that they have the contact information for the title company you are closing with so that they have another source to verify the information you are giving them. You can avoid a great deal of trouble if you make a consistent effort to keep the Seller in the loop.
For those investors who focus on wholesaling properties full time, it’s a volume business. The numbers add up quickly, and if you put the right system into place, you can easily get multiple deals competed month after month. Wholesaling is a great way to learn about real estate investing while building a business that will lead into doing more sophisticated and lucrative deals. It’s also the best way to make fast cash in real estate. Depending on your buyers, you might be able to close transactions in as little as seven to 45 days. Finally, understanding how to wholesale properties keeps your business agile when considering different exit strategies. The more ways you know how to make money off of every “buy” call that comes into your office, the better your chances are of building a business that supports the lifestyle you want.
To learn more about wholesaling houses, or to kick your own real estate investing efforts into high gear, click here .
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6 Stages to Successful Property Rehabbing
Friday, June 3rd, 2011 | Foreclosures, Real Estate Investing, Real estate short sales, Wholesale properties | 6 Comments
Learning how to rehab houses gives you the best chance of building a sustainable real estate business that will open other opportunities for you. For many a successful real estate entrepreneur, rehabbing is where they cut their teeth. It’s where they gained the skills and insight necessary to build a foundation leading to other opportunities in real estate investing.
When rehabbing a house, there are six main stages of the process:
Stage 1: Pre-Construction – As soon as you close on a property, you want to get to work; after all…time is money. Below are some basic tasks to consider –– in some cases you can complete them before the house closes:
- Secure the Property – If you’re buying properties in a tough area, board up the windows and secure the locks. Even if the property is in a nicer neighborhood, rekey the locks; you never know who had a key to the house before you bought it. Have a few keys made and put a lock box on the front door so that your team can get in and out of the house.
- Switching Utilities – Put the utilities into your name (or company name) and have the date they are turned on coincide with the closing.
- Plans & Permits – Do things the right way and get your permits (construction, plumbing, electrical) before you begin work. This is also where you really nail down your “action plan” and begin lining up materials and scheduling skilled trades to do work.
- Foundation Repair – Account for the additional work and risk by buying the property cheap –– as low as 50-60% of market value minus repairs.
- Pest Control – This is a good thing to have on your list, but not always necessary. If you find a house full of fleas, termites or other critters…then make that call.
- Plumbing Pre-Demo – Have your plumber assess the property. Valves should be shut off, and any old appliances should be disconnected and removed.
- Electrical Pre-Demo – Unhook any appliances and fixtures that will be replaced. Any wiring that is in the path of something that will be demoed needs to be removed.
- Demolition – You need to have a good cleanup crew that is willing to go in and take on a dirty project. Once the house is cleaned out and the electrician and plumber have done their thing, begin tearing out the cabinets, walls, counters, etc., that you want to replace. Afterwards bring in a cleaning crew to sanitize, rid the house of pet odors and clean up the yard.
Stage 2: Rough Structure – Most of this work will be done above ceilings, below floors or in walls. Be on-site for as much of the work as possible, and keep a close eye on the cost of materials and labor.
- Rough Plumbing Under the House or Foundation – Rough plumbing takes place when you buy a house that either has a change of layout as part of the rehab, or you’re replacing pipes. If you buy low and have confidence in your plumber, then you should feel confident about making the repairs and turning the house for a good profit.
- Framing and Sub-floor – Remove any rotted wood. This may or may not involve structural work. If it does, then you’ll need to have an engineer on board as a part of the process, and you’ll need permits. Typical situations involve removing sub-flooring in bathrooms and kitchens, though porches, stoops and steps are also on the list.
- Exterior Doors – Replace any doors that are damaged. Know what the codes are for exterior doors in the area of the subject property, and buy accordingly.
- Windows – Replace those windows that need replacing. This can be a money item because it’s not just the windows, but the cost of installation and the potential repairs to the walls, casing and trim. But by strategically placing new windows, you can amp up a standard rehab project.
- Siding - Consider adding siding if you’re in an area where you’ll get a good return on your money. Otherwise, paint the exterior…but do one or the other.
- Exterior Trim – Window sills, window trim, eaves, door trim, corner trim and the fascia and soffit.
- The Roof – When inspecting a roof, look for curled, faded or missing shingles. Note how many layers of roofing material are on the roof. Ideally, two layers, maximum is acceptable. Pay attention to any weird angles that may indicate that the roof decking is rotted or slowly weakening. Work with a good roofer to get an estimate of costs to repair. Typical repairs include replacing shingles, flashing and vents.
Stage 3: Mechanical Systems – Stage 3 tasks can and will overlap with Stage 2, which leaves plenty of opportunity to lose track of what’s being done, by whom and for how much. You really need to stay on top of things, or costs can get out of hand.
- Fireplace – Get a chimney sweep in for a cleaning and an inspection.
- Rough Heating, Ventilation, and Air-Conditioning (HVAC) - Have a good HVAC specialist to check out the system – the furnace and air-conditioning unit, exhaust fans found in bathrooms, attics, kitchen, etc.
- Plumbing in Walls, Ceiling and Attic – Begin running new pipe in the walls, ceilings, etc. You’ll need to have all appropriate permits for this task. Complete any prep work for new appliances.
- Rough Electrical – Bring in your electrician to run wire and install junction boxes. Make sure you’re using a licensed electrician and that everything is up to code.
- Insulation – Once plumbing and electrical are installed and inspections have passed, begin insulating the exterior walls.
- Concrete Work – For a driveway (or apron), walkways and patios.
- Septic – These can be an expensive nightmare…and before you even buy the house you need to have a report examining the septic system –– paid for by the seller, if possible.
Stage 4: Unfinished Surfaces – This begins the work that people can see. Just like in the other stages, you need to stay on top of scheduling and costs.
- Drywall – Hang, tape and fix any issues with the walls and ceilings.
- Garage Doors – Adding a new garage door is a great way to add curb appeal, but is not a necessity.
- Gutters – Examine whether downspouts and gutters need to be replaced.
- Wood Floor Installation – In certain situations we will refinish wood floors, especially if the house is located in a great neighborhood. Rarely will I install new wood floors, unless I am excited and sure by the potential of a project.
- Cabinetry – Line up a few choices you prefer for your kitchens and bathrooms. Go with a cabinetry company that knows what you want, and can begin managing the process early when you’re just starting the rehab.
- Interior Doors – You can either buy a pre-hung door that is attached to the jambs and has the door handle hole already drilled (along with the hinges), or buy a “blank” door and hire a carpenter to drill all the holes, etc. When installing doors, there’s a lot of trim work to be done.
- Housekeeping – If you’ve done any of the above, then you’ve created a mess of pieces, parts and dust. Clean it all up. Get rid of the dust and debris, and begin prepping for the paint.
Stage 5: Finished Surfaces – This is where your vision comes together to create a product that is functional and pleasing to the eye. If you’ve managed to keep track of workers, materials and expenses, then you should be on budget to begin the cosmetic changes.
- Interior and Exterior Paint – The standard paint for interior spaces is latex, which is easily washed up with water. The shinier the paint, the easier it is to clean.
- Countertops – Granite, poured concrete, engineered stone, wood, ceramic tile, solid surface, or plastic laminate. Like every other decision you’ve made, you want the cost to be congruent with the type of rehab you are doing.
- Tile – Install tile anywhere in the house where you want it. For basic rehabs, you’ll use vinyl instead. For your standard rehabs you’ll end up using an inexpensive tile to enhance the aesthetic of the house. For a high-end house, spend the money and use high quality materials.
- Vinyl Flooring – The most common flooring used for both standard and basic rehabs…it’s cheap and easy to install.
- Final Plumbing – Make sure that everything…all the lines, pipes, valves, toilets, faucets, etc., is installed correctly.
- Final Electrical – Install the finishing touches (switches, plates, jacks, lights, smoke detectors, etc.).
- Final HVAC – Install new vents and a thermostat, or a new air-conditioning unit outside of the house.
- Finish Wood Floors – Either finishing or refinishing wood floors is the final task for this stage. Once done, you’ll want to keep traffic to a minimum as a way to avoid any unnecessary damage.
Stage 6: Final Details – In this stage, address all those details that, at times, will seem endless. Here are the small things that can add up to a fast sale at full price:
- Small Additions – There’s much you can do on a standard rehab to make it seem more appealing:
- Brass kick plate for the front door
- Two-piece front doorknob
- New knobs for the kitchen cabinets
- New interior doorknobs or handles
- Brass house numbers
- New doorstops
- New switch plates
- New towel bars
- New bathroom mirrors and doors (if an upgrade is necessary)
Appliances – We’ve enjoyed consistent success using a local turn-key appliance company, or you can use Home Depot or Lowes.
Carpet – We alternate between plush and Berber, depending on the neighborhood.The color is always neutral, and the carpet is always installed near the very end of the project so it doesn’t get soiled or damaged.
Landscaping – For a standard rehab, clean the yard, edge the walkways, edge the flower beds, and do some basic trimming. Remove any debris.
Final Cleaning
Staging the House – Consider bringing a local designer (who is inexpensive) onto your team who can help accessorize the property. You don’t have to spend a lot of money to make a house attractive and inviting.
Final List of To-Dos – The list you make after walking through the house and taking note of the few remaining items that either need to be completed or are unsatisfactory.
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