In Your Plan for How to Make Money in Real Estate, Don’t Forget to Hire a Renovation Manager
In Your Plan for How to Make Money in Real Estate, Don’t
Forget to Hire a Renovation Manager – Strategic Real Estate
Any plans you have for how to make money in real estate should include
how you’ll work with a Renovation Manager. Here’s why this team member
will soon become one of your ace players.
If you’re trying to figure out how to make money in real estate, you’ll want to do some
research on working with a Renovation Manager. This is a critical role to fill if your
strategy includes flipping houses – meaning that you buy distressed properties, rehab
them, and then sell them. That whole process is most profitable when it’s completed
quickly. Serious real estate professionals are flipping anywhere from 5 to 15 properties
a month, and sometimes more.
The idea is to follow these three basic steps:
1. Buy an inexpensive property (usually foreclosure or bank-owned)
2. Fix it up
3. Sell it
Sounds easy, right?
On paper, sure. But matters get complicated when they meet the real world. Each
phase of this plan has its own challenges. You’ve got to buy the right properties. You’ve
got to know how to sell them for top dollar.
Between the buying and selling, you’ve got to do the rehabbing the smart way, too. If
you’re not careful, you can spend too much money – or not enough – to rehab a
property and end up losing your shirt.
The Renovation Manager – Master of Time and Money
It all boils down to two elements: time and money. You’ve got to spend enough money
to get the property looking good, up to code, able to pass inspection, etc., but not spend
so much that you end up losing money. And you’ve got to do all of this very quickly. The
name of the game is to buy, fix, and flip in order to generate your profits and pay off
your lenders, contractors and employees. So time is of the essence.
Guess who’s in control of this time and money?
You are so right – the Renovation Manager. He’s the guy who decides what needs to be
done with the property in order to rehab and flip it as quickly and as profitably as
possible. And he develops a budget and schedule to accomplish this. He manages the
entire process, from initial demo to finishing touches. He hires the labor, evaluates bids,
and even secures insurance.
This Team Member’s Role is Key
As you consider your strategies in deciding how to make money in real estate, don’t
forget the role of Renovation Manager. This person is essential in evaluating a property,
deciding what can be saved and what needs to be replaced, and setting up procedures
to accomplish the rehab on time and on budget.
If you haven’t listened to our recent podcast on this topic, tune in now! The podcast is
designed to make it easy for you to learn how to make money in real estate wherever
you are. In your car, at the gym, at home, or anywhere, why not make that time
profitable by learning what it takes to succeed?