Fix and Flip Real Estate Investing: Buying the property, designing and managing the project
Perfect! You found the right property at the right price! BUT now you must get a final estimate on the cost of repairs, find a contractor, architect, designer, subcontractors, permits, etc.
This where most people get stuck, because you’ve studied and educated yourself on the processes of buying a house, but did you study construction? Design? How design effects the desirability of a home? How you need permits before you start remodeling? Should you move that wall? What is the cost of rearranging the bathroom? Should I hire a General Contractor or manage the project myself?
These are important questions to ask and the answers will directly affect the growth of your business.
Below are a few tips you need to consider where construction and design are concerned if you want to take your REI business to the next level!
REI Growth Tip 1: Learn how much your time is worth.
- When considering handling all the design and construction tasks in your business, a question that needs to be thoroughly thought out is “how much money am I LOSING by doing those tasks myself?”
Yes, I said LOSING.
The tasks you can complete may save you money on that project, but you must have a LONG view of your business.
At the end of the day you will have to invest your valuable time on those tasks, which will take you away from marketing for more deals, meeting with sellers, and all the other tasks this business entails. This is where you as a business owner must decide how much your time is worth, and how much value your time adds to your business.
If you are the do-it-yourselfer, and plan on cutting costs by spending all your time at the job site, who will be out there hunting for your next rehab? Who will be building your business by strengthening professional relationships with others in the real estate business?
The value on your time can be much greater than you anticipated, because in the moment you chose to save $500 by planting the greenery yourself in your current rehab property, you may have missed the opportunity to buy an entire new property that could potentially make you thousands!
REI Growth Tip 2: Determine if you really save money doing it yourself over hiring experienced people
- Always make sure you have the right people doing the right tasks, especially in design and construction management. Make sure you are being honest with yourself, knowing which improvement projects YOU can complete quickly and successfully, and which projects you will need to hire contractors to complete.
That means getting professionals to do things they have the expertise!
For example, not having the right permits, or not correctly displaying permits, can cause serious delays, and fines, from city inspectors. It’s also helpful to make a timeline for projects, with associated deadlines, and the budget listed for each project.
This helps you, and your subcontractors, get renovations done quickly, and within budget.
These are very time consuming tasks.
If you do not know what you are doing, you can plan to double or triple the time you will spend on them just to save money having an experienced person do the job.
You need to ask yourself if it’s really worth it in the final analysis.
REI Growth Tip 3: Learn where to best invest your time:
- You need to gain a better understanding of your skills and strengths in your business.
This is something not particularly taught in a lot of real estate investing education, but if you have a savvy mentor or educator, they will teach scaling.
To scale your business, you need to understand your own skills.
There will be a season where you will have to do many tasks yourself in your real estate investing business, but you must always be aware of what you’re a 8, 9 or 10 at, and what tasks you really stink at (or hate!) Don’t spend time and money getting better at those, rather find people who can perform those tasks for you and you will see massive growth in your business!
Wrapping it up:
I hope these tips gave you some things to think about and the importance of getting the right people in the right places in your business to help you grow!
REI Design Solutions has made it our mission to help elevate Real Estate Investors in the growth of their real estate investing business!
We do this by providing expert design services such as Kitchen Design, Space Planning and Project Management, (just to name a few).
For our do-it-yourself Real Estate Investor friends, who may just need a helpful hint or push to decide which direction they are going in with their first, second or even hundredth rehab project, aside from the professional paid services we offer, we also seek to provide quality design expertise in all our online content and in our newsletters.
We will also be conducting webinars soon so stay tuned and subscribe for information and updates about our next webinar!
For FREE online design and construction advice, check us out on Facebook at REI Design Solutions for more of our do-it-yourself friendly tips and tricks.
So how do you know if you need help in any of the areas we talked about today?
Let’s start with a few questions that you may have asked yourself:
1. Do I have 10-15 hours a week to dedicate to meeting with sub-contractors on site?
2. Am I going to be selecting the materials and fixtures in this project, if so what is in style and appropriate for this property?
3. Am I a good planner who remains organized from the beginning to the end of a project?
4. Will this style attract a home buyer?
5. Which layout is cost effective yet will appeal to buyers?
6. What am I doing here?
7. How much longer do I have to spend on this?
8. Can I make decisions quickly and confidently?
If you answered “NO,” or “I DON’T KNOW” you might need some expert advice. It only takes a few minutes to lead you in the right direction when it comes to design and construction decisions. It’s our mission to deliver expertise, offer guidance and add value to your business!
Let us know how we can help you grow your business!
To your success,