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Remodeling techniques are crucial to master in real estate investing. Even if you are trying to wholesale properties, you may end up owning it and remodeling it. Our Rehab Consulting team has laid out the five basic remodeling tips that you must master to be successful. For repair estimation, please see our Rehab Consulting Team information. An investor who puts into practice these principles will be able to successfully remodel a home, whether by hiring contractors or doing the work himself.
No remodeling job can begin until the value of the job is calculated. We can save you a few calculations. Kitchens, bathrooms (especially toilets) all need to be upgraded to put a house in "for sale" condition. Clearly the exterior of the home and entryway should give a good first impression. Everything else has diminishing value. Make sure that extra expenditures justify themselves in an increased appraisal or quicker time to sale. Otherwise, you are prettying a house that you might want, but will ultimately be selling it to someone else for less profit because of your tastes. 2) Generate Materials List We recommend having contractors handle materials. However, understanding precisely the amount of cost of a bid in materials alone will help you determine fair bids. Further, if you want to work on jobs yourself, you need to know your hard costs, so you can evaluate the value of your time versus someone else's. We do not contend that a materials list is easy to generate. We do contend that generating a materials list will increase your level of success. 3) Order of a Job Everybody knows to carpet last, right? Some investors make some pretty classic errors on the order of work. Don't be one of them. Think through the jobs and the steps it will take to complete them. Usually, this means coordinating multiple contractors on the same jobs for weeks. Its worth it. Having to re-do a job can be very expensive. 4) Pull Permits Permits must be pulled in the Houston market, not only by law. If you fail to pull an appropriate permit, inspectors can get nasty. Tear off that new sheetrock you put up, I want to see the wiring. And it gets worse. And with a "House for Sale" sign out front, your house will be an inspector magnet. Harris County is less of an issue, but the small towns such as La Porte, Deer Park and Pasadena, tend to be even harsher. 5) Secure Your Job Site Theft is real. Do not leave tools lying around. Get alarms on your houses. Make sure your Air conditioning units are secured by a cage and an alarm - it is nearly impossible to keep a new A/C on the ground in May and June in some of the more crime-prone areas - see our blog for Houston gang crime areas). Further, clean job sites are more likely to attract buyers. These principles, put in practice, tend to help remodeling jobs go smoothly. If you have questions and would like more dedicated and one-on-one/small group education, we can set up live in-person or on-the-job learning sessions - upon request or at a regularly scheduled time. Related Articles -BASIC EDUCATION OVERVIEW - Basic Investing ARV - After Repair Value Birddogging Contract for Deed Dealing with Contractors Estimating Profits Evictions - A Primer Executory Contract Foreclosure Overview Foreclosure Types Overview Hard Money Loans - a/k/a Asset Based Lending* Lease Options Leverage MAO - Maximum Allowable Offer Multi-Family Investing Basics as Presented by David Lindahl on March 4, 2006 No-Money Down Real Estate Investing Options Part-Time v Full-time Passive Investing For Beginners Pre-Foreclosure Profit Calculation Remodeling for Beginners Rent vs Buy Is Really Rent vs Sell Seller Financing as Investor Buying Tool Skiptracing Subject To Wholesaling Return to Listing Return to Investor Education |
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