How to Start Out in Rehabbing

Are you looking to make huge profits in real estate by buying distressed properties, rehabbing them and reselling at market value? There are many distressed properties out there that you can pick up for pennies on the dollar. The key to huge profits is taking on multiple projects at one time. I am writing this article to outline the key elements that ensure successful multiple rehabs.

It’s all about working smarter not harder!

We must become experts at locating and prescreening quality contractors. If this is done right, the probability of the rest of your rehabbing project being a success increases ten-fold. Remember, the goal for us as successful real estate rehabbing investors is to understand and manage the rehab process, not to teach ourselves to install toilets so that you can save $50 in labor on each job.

Understanding the value of time, utilizing each decision on rehabbing to leverage your money, and investing in continual education is the key to your real estate rehabbing success.

 

    • The first key component is time. If you hire an inexperienced contractor it will cost you more time to complete a project. The more time per project, the fewer projects completed and the fewer dollars earned each year. By designing a system for everything in the rehab process and then outsourcing or managing the system, you can create more time throughout the day for yourself. This gives you the flexibility to take on more projects at one time.

 

    • The second key component is to leverage money. By investing and leveraging your money in rehabs, you can watch it grow exponentially. The key is to outlay one dollar in order to get two or three in return. You do not install granite counter tops in a house that will only sell for $150,000 once completed. That is not a smart choice for your money. You do not want to put in four dollars in order to get one dollar in return. Do not over-fix your property. Fix to your neighborhood standards, and always ask yourself how much money this particular decision, material, or feature will return in dollar value when you begin to market the house for sale. Always look to effectively leverage your money on every decision you make in the rehab process.

 

  • Finally, the third component you need to utilize and leverage in your real estate rehabbing career and specifically your rehab projects is knowledge. By investing in continual education you will learn how to implement systems and routinely take action. You will learn how to leverage yourself. There is a clear pattern for success.

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