first time rehabbing a property any suggestions

In my opinion, quality counts. I've been in construction for 15 years and have seen some crazy things "contractors" have done and still get paid! You said it was mostly cosmetic work to this house so you're probably doing most of it on your own? Take the time to do things right so when you are done you can stand back and say to yourself "I would live here". If you can say that, you can leave the "job" happy!

Ryan

Create a Budget:
You want to ensure you create a budget for the work to be done. Make sure you list each item and all the items you want to do.

Get Several Estimates:
Before you start any of the work get at least 3 estimates for major items such as roofs, windows, HVAC heat/air, etc. You will be surprised at the various pricing. Also, check references and make sure you do not "pay in full" until the project is complete. Terms are just as valuable as price.

Contractor Timeline:
Get the contractor to commit to a timeline for each project. The timeline is very important so these contractors may not "string you along" as they take on multiple projects and have more than they can complete in the timeframe desired.

I hope this helps. Good luck with rehabbing this project. Believe and Achieve! - Joe

yo "Indiana Joe" thanks for replying to my question, hey Dean Speaks highly of you and ive read your posts online before i saw you on Deans videos blogs, man, you and your wife are so lucky to have meet Dean in person it must have been great. thanks for the help

thanks Ryan

Thanks for the nice comments. Dean's books and programs have changed our lives. We are so excited to be involved with real estate an are having a great time. We were fortunate enough to meet Dean at his Gain the EDGE event 2009 last April and then again this Summer. Dean is the real deal and is so passionate about providing the best information he can to the DG students. I look forward to reading about your progress. Good luck with real estate investing. Believe and Achieve! - Joe

Any property you buy no matter whether its newly build or 100+ years old. Always, always, always get a whole house inspection (with exception of whats hidden in the walls) it can literally save you thousands and migraine if there's something you don't know how to fix yourself or you can't find an professional who knows how to do that kind of particular repair work in you area.

Know the price of materials in your area. And what contractors usually charge base on SQFT or linear foot for any specific work. Like Indiana Joe says get several estimates and make sure the contractor is bonded and insured and above all else properly licensed if their kind of job requires a license. Also may sure you get the appropriate permits pulled before your contractor start any work and that they don't conceal any pipes or anything else that need to be inspected by your county, town or municipal inspector.

I think what rikee said pretty much says it in a shell, if your doing the work your self then always take your time. You don't want it to look like you ran through there. If you step back and think wow that looks good then you will be able to sleep at night.

Hi,
I've done hundreds of commercial and residential knife and spray jobs. I'm a Master Mechanic, Builder and Painting & Waterpoofing Finishing Systems Specialist. I do all real estate and infrastructure systems.

Step 1. Knife walls using a 12",10",8" and usually a 6" knife, for corners and to smooth the inperfections in the walls and cielings. Knife up to 3 coats for super quality and for rental grade or flips a 1-1/2 coat knife job will do. This is called skimcoating too.

Do the whole house at once with all these steps. (i.e.) complete each step.

Step 2. sand using a sanding pole or electric sanding machine, all I use is a 1/4 in electric sander for alot of it. The goal being sand as least as possible, (its messy). sweep the walls and cielings with a fine broom, a 24" does it to clean off the dust.

Step 3. Buy 10-15 gallons of primer sealer enamel undercoater from a Benjiman Moore dealer and purchase the finish paint too -10-15 gallons, I don't recomend home depot paints.

Step 4. Rent an airless spray gun for a weekend and spray the entire home, again in one step, using the best product is (critical because you want the one hour dry undercoater so you can come right back over surface with finish coat/s), so now you have a foundation to put a great finish on.

Step 5. Do a super caulking job using sometimes 20-35 tubes, I use Dap latex silicone 35yr. this is key to a quality job. Do it for the value weather rental,flip or a caddy.

Step 6 Apply Ben Moore again, airless spray, off white colors are great for rentals and to use as a system for all properties.

If you want (the caddy) give it a third coat. If its rental grade or flip (the chevy) step 5 should do it. The painting can be done in one day - both coats, the joint compound/knife coats needs overnight dry times.

I have done quite a few rehabs on a shoe string budget. Here are some suggestions:

I network with licensed contractors who have active accounts with local buidling suppliers, so I ask them to help me get new materials for wholesale.

I obtain left over paint from painting contractorsm, mix it into one color, and apply to the walls for next to nothing.

I get carpet and pad left overs from carpet contractors and have a local handyman who use to install carpet install it for a minimal fee.

In this current economy, I have found that I can negootiate down the price to do a job quite a bit more than I have been able to in the past. I get a discount for the volume of jobs I provide them.

I have used restore and classified ads to locate lightly used building materials from others. I have found left over, drywall, trim, switches, and plates, vents, doors, door knobs and bathroom fixtures for a small portion of the cost it would be to buy new.

I hope it helps some. I have gotten very creative, but I never cut corners on the quality....you will have a hard time selling something that looks like corners have been cut.

Does anyone have a templet for a timeline or schedule that you use? I am trying to get more proficiant and organized. I am just beginning the rehab for flipping and we a wasting too much valuable time.

Donna

but thougt I'd put in my 2 cents. Coach Derling you reminded me that 'mis-tints' are available at most paint stores for $1 a quart and $2-$5 a gallon (in SE FL, I'm sure prices vary throughout the country.) Paint stores want to get rid of the mis-tints. However, these are usually darker colors. You can lighten the color by buying 5 gallons of a lighter paint and mixing it with the mis-tint.

Habitat for humanity has new and used items and if there is one in your area this could help save some money (and donate to a good cause.) Check the hours before going there, it is run by volunteers and sometimes the store doesn't open at the time they say they will. Hope this helps.

Lea
SPR Property Solutions, LLC

When going down a list of materials needed from the contractor you're going to use, found out their budget if they were going to buy it, and then go with them to buy the materials and see how much money you make with the difference

Personal example; I had a property I bought and the contractor gave me a budget of $4k for materials; he broke down and the stuff needed and it came out to just over $4100. When I later that day mentioned that I would go with him to buy it, he came up with every excuse not to have me come with him, even at one point lightly threatening not to do the job. I called his bluff but he backed off and we went.

My bill came up to $2600.

Also, never pay upfront and ask if they have any other projects coming up or are they presently working on anything; if they are be very clear on your assignment takes precedence and if its going to be an issue, then they can move on and they will be paid for only the work they've done at that point.

Make visits on notice and be very vocal if you are not happy with the work and progress of your job. Bring someone who is a contractor or looks like one and have them give estimates in front of the contractor; nothing scares a worker than another worker more than willing to take his money and job

Hope this helps

I have bought left over materials from contractors on a regular basis for a steep discount. I have also made some great contacts with property managers and landlords who have used items they need to get rid of that I have been able to recondition and use in my properties. I offer to haul it away for free and they are as happy as can be to give it to me. In my area, we have a lot of people doing remodeling. I have contacted many remodelers about their used or left over materials. I offer to haul them away or buy them for a discount too.

Many times, you will find great used or left over materials listed on free classified ads such as craigslist.com. I have bought doors, paint, carpet, appliances, and trim most often this way.

I have picked up carpet and pad, stoves, fridges, sinks, cabinets, paint, hardware, and trim this way.

Thanks for the info. Very easy to follow and understand! Very appreciated by all DG family...Tks again.

Phoenx

Everyone makes great points on this string of comments. Establishing a budget of where you need to be as you are getting started will be huge in making sure that you have profitable deals as you are getting started. The last thing you want to do as you're starting out is to "bite off more than you can chew" on your first deal. Not only from a dollars stand point, but from a time stand point as well. The last thing you would want to do either is tie up several weeks, or months of time to get your first deal. If you set a budget around $5,000 to $10,000 and don't spend more than 3 to 4 weeks on your properties will help you keep it to cosmetic issues. Also keeping your repairs to cosmetic issues will help you out as well. Painting, cleaning and possibly cleaning or replacing the carpet can help out much more that you realize. A fresh coat of paint and clean carpet can do so much for a property that once was an eye sore. getting your first deal done in 3 to 4 weeks and making $5,000 to $10,000 can be so much more effective than spending 2 to 3 months to make $10,000 to $15,000 and have big issues that could eat up your potential profit. Keep it simple as you are getting started and you can always build up as you have more experience.

for every 50 people you contact, you'll be lucky to get 3 direct buyers. However, if you do happen to have one like i've always preached have something to present and offer on the spot.

Working with one I found on there now on a TX project i'm doing. We said our pleasantries, first question was "are you a wholesaler or direct buyer???"

"I'm a direct buyer, what do you have???"

I ran down the deals I currently have and three piqued his interest, I let him know i'll need him to sign a non-disclosure agreement that my business partner will send and will require a legit POF and bank statement, of which he had no problem with.

Two days later, with non-disclosure signed, and POF and bank statement verified, we're starting business.

My personal favorites are and will always be;

www.linkedin.com

www.greenpearl.com

Why??? Because I can see who i'm doing business with and you can easily screen the waste less time.

Have those DEALS in place when you do meet an end buyer.

Some interesting ideas in this thread, perfect examples of thinking a little different!

Hello,

A big thing I would recommend is putting in the extra money to buy stainless steel appliances. Trust me it will seperate your house from all other houses on the market.

Use a two tone color for the walls. Antique white is great, and the ceiling pure white.

I use high gloss on cabinets in the kitchen and on the baseboards.

To save some money you could use pedestal sinks. They look great!

If you're hiring other people make sure you manage the property and be there as much as possible. This could save you lots of money. Get the right guys for flooring and for cabinets and counter tops. It's rare that one guy can do everything by themselves.

Also, make sure to address all issues such as electricity (call an electrician), heaters, furnaces (call the electric company) and fix everything that needs to be fixed, especially if you're selling to FHA buyers.

Any other questions please feel free.

Sam

I love the idea of putting Stainless Steel appliances into your houses.
This will in fact make a big difference.
- Fridge
- Oven
- Dishwasher
- Microwave
If you did these 4 appliances in either white or black, you will be right around $1800 for the package. For just a few hundred dollars Under $2500, you can put in stainless steel appliances which will really make you kitchen and rehab property stand out and POP!
Another money saving tip would be to use a less expensive mid length carpet. a great tip would be to put a nicer 8 pound carpet pad under that carpet and by putting a higher quality padding under the less expensive carpet will make the carpet feel much nicer hand higher quality.
Hope this helps.

Happy Investing.

Matt W.