Rehabbing

Renovate a home for only $9,031 and make an outrageous $25,669 PROFIT in less than 3 weeks!

Rehabbing for profit involves the process of purchasing properties in need of minor or major repair that when bought at the right price will yield major monetary benefits when either rented or sold.  The long-term road to real estate wealth involves improving properties and holding for rental. A great resource for properties is buying fixer uppers.

Estimating Property Repairs
 
Financing is a big consideration when improving a property for profit.  There are numerous lenders who will supply purchase and improvement funds in the same loan.  If you are short on cash, a smart move is to get a credit card or line of credit from a home repair center such as Home Depot or Lowes so that supplies can be purchased and your cash can be allocated to paying for contract labor.  In addition to the usual supplies, electrical, plumbing and carpentry expenses, also remember to include expenses such as the cost of dumpsters, guard dog or security services in suspect areas, cleanout services, etc.  If cheap labor is needed for unskilled tasks, Labor Ready a national chain, provides workers on a daily, temporary or permanent basis.  Check out books, courses, software on rehabbing and real estae investing that cover everything from the basics to complete restoration.

Get Organized

Set a timeline for getting your project done.  Time is money/cash flow.  Create a list of the steps that must be performed in order to complete your rehabbing project. 

Comparable Properties

Knowledge of the neighborhoods that you will be investing in is extremely important.  It can mean the difference between making a large profit or actually losing money on a rehab project.  Do you know what other properties are selling or renting for in your community of interest?  Set your rents too high and it may take considerably more time to rent a unit.  Set your selling price too high and your house may sit on the market longer than necessary and therefore increases your expenses, not profits.  Homeprice is a website that lets you check home sales in a particular area based on your search criteria.

Building Codes and Inspections

Learn as much as you can about building codes and inspection procedures.  Try to be present when a particular inspection is scheduled.  You don't need to know each and every code, but get to know your local building, plumbing, fire and electrical inspectors.  Simply talking to these individuals will reveal a wealth of knowledge so that each succeeding project can run more smoothly and on target since you will have a better idea of what an inspector generally looks for.

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