rehabbing profits for the flip & hold investor€¦ · rehabbing profits for the flip &...

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

Copyright © 2008 Rob Swansonwww.reiEducationProducts.com

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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)



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



Immediately After the Closing

• Secure the Property

– Change the Locks

– Cover the windows



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



The Walk-up

• Roof & roof lines

• Windows

• Garage door

• Driveway

• Sidewalks

• The neighborhood



The Walk-around

• Roof & gutters

• Windows

• Landscape

• Drainage

• Siding



The Walk-through

• Room-by-room

• Odor

• Wall texture

• Windows

• Flooring, under-floor



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



Step-by-step Rehabbing

Step 1

• Define the project

– Major items

– Property flow

– Usable space

– How people live




Step 2

• Solicit & hire your contractor

– GC or subs

– Line item bid or phased bid

– Timeframe

– Budget

– Incentives & bonus

– Payments & lien waivers




Step 3

• Secure the property

• Buy materials



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.




Step 4

• Start the demolition

– Understand weather & time of year




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.




Step 5

• Roof, Windows & Siding




Step 6

• Plumbing, Heating & Cooling (HVAC)

– Check the work with a top out inspection




Step 7

• Framing, Structural & Subfloors




Step 8

• Tile & Hardwood Flooring




Step 9

• Walls, Sheetrock / Drywall

– Consider a skim coat vs new walls

– Seek uniformity and consistency

– Mobile vs truck mounted equipment




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




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.




Step 11

• Kitchens & Baths

– Counters / sink

– Clean




Tip #4

• Appliances

Returned, slightly damaged and dented appliances can be a great cost saver / value adder.




Step 12

• Punch list incomplete or repair items




Step 13

• Carpet Installation

– Heavier pad with rental grade carpet




Step 14

• Clean-up & detail interior




Step 15

• Site clean-up & landscape




Step 16

• Marketing the property

– Let experts do what they do

– Market the property yourself




Step 17

• Showings, feedback, minor repairs

Sell or Rent the Property for Profit



What to Buy: Knowing Your Options

• Minor rehab, basic repairs

• Major renovation

– Standard

– Specialized

• Structural & Environmental



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



Where to Find Your Deals

• Direct & Target Marketing

• Referrals

• Real Estate Agents

• Banks & Liquidation Companies

• Attorneys & Other Professionals

• Real Estate Wholesalers




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.



Get Your Free Rehab Forms

To get your FREE rehab forms, please visit:

www.reiEducationProducts.com/rehabforms



rehabbing profits for the flip & hold investor€¦ · rehabbing profits for the flip &...

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