What Online Real Estate Courses Should Teach You about Handling Renovations
What Online Real Estate Courses Should Teach You about
Handling the renovations on homes you buy and flip can be a tough job.
An important lesson you can learn from online real estate courses is how to get it done
without going broke.
Some online real estate courses get you all hyped up and send you out with a final
battle cry: “So, are you ready to flip?” But the best ones actually teach you how to
handle what might be the toughest part – the rehab.
Buying the homes – no problem. It’s easy enough to learn how to spot the good ones.
Selling the homes – too, no big deal once you learn the steps to ensure you can sell
fast. In the middle lies the potential for profit or massive losses.
See, one absolute when it comes to the world of flipping is that renovations will be
needed. You have to realize that getting a house for such a great price will have a
catch, and that catch is that the house is going to need repairs. Sounds simple enough
until you do the math and realize you could end up in the red if you’re not smart about it.
Running the renovation project is harder than it looks.
Ain’t Nobody Got Time for That
Let’s take a look at your schedule. Do you have the time to oversee the renovation
project? There are budgets to be figured out, scheduling how long the project will take,
hiring both skilled and unskilled workers to do the work, materials to be bought, walk-
throughs that are required, and then there’s the whole job of making sure the folks you
hire do the work on time and on budget.
OTJ Training? No, Thanks!
Handling a renovation is not a skill you really want to learn on the job. Without any
experience in the world of rehab you are more than likely going to under-budget
yourself. When you run out of money, you can stop the rehab; but what exactly are you
going to do with a house that is half done? Nobody wants to rent a house that’s a work
in progress. Selling it again may be an option but if your attempt at renovation stopped
after the walls had been ripped out and the electrical system is only partially completed
you could be selling the house for less than what you originally purchased it.
Two Weeks, Two Weeks
Renovation projects also involve dealing with the various trades who each play a role in
getting the house back up to snuff. What happens if they show up bright and early the
first day and then the only thing that is present for days or weeks after are their tools?
Do you have the gumption to pursue them and insist on them getting back to work?
Don’t there are those out there who may take advantage of your naivety when it comes
to the cost of laying tile, installing a new roof, or replacing windows? You might want to
re-watch “The Money Pit” this weekend.
Does the mere thought of these what-ifs elevate your stress to the level of seeing red?
Want to avoid the stress, stay on budget, and have a beautifully renovated home ready
to be sold in a reasonable amount of time?
Then you need a Renovation Manager. It’s not hard to find one you can trust. Check out
some General Contractors in your area. Ask for references. Go see the work they have
already finished. Then talk with them about what you are looking for to help your future
flips run smoothly.
When you find someone who has the experience in doing renovations you gain the
benefits that come with experience. They have written out budgets, are knowledgeable
about material cost, can negotiate prices, and know how to get everyone hired to do
quality work and do that work on time.
ABOUT THE AUTHOR
Josh Cantwell of Strategic Real Estate Coach teaches online real estate courses built
for the real world of property flipping. If you want to make the real BIG money, you have
to get comfortable with renovating properties (or getting someone else to do it for you.)
Tune in to this free podcast to discover the 6 simple steps to EVERY renovation.