Realty411 Magazine A Spotlight on Charles and Lena Sells | Page 28
Now on to the moment you all have been waiting for
yes the number that matters the most in real estate
investing, The Rehab Cost! Yes repairs are where most
investors including seasoned ones can really lose big.
Every deal I have been involved with always gets made
or broken off the cost of repairs.
Most people especially newbies have no idea what it
cost to fix a house let alone a twenty plus unit
apartment building. Yes you can look up prices and get
estimates but have you really ever rehabbed a full
blown house other than your own home? Have you
even rehabbed or made repairs to your own home?
Hosea 4:6
trainings. But I can also help you learn a few other ways.
How about going on a local real estate tour with a
property inspector. Well that is exactly what we do each
year here in Fort Worth through our real estate club. I
take investors out in the field with me, my realtor Renee
and my Inspector Mike Statler. Mike is a great asset to an
investors networking power team.
Mike has been with me for around 12 years are so. He
attended one of our real estate trainings back in the day
for one of the Guru trainings I was doing. Let me tell you
he can show you things even as a seasoned investor you
may never catch on a property until it’s too late!
Another way to get some experience is to go
volunteer for Habitat for Humanity. Back in the 90’s I
had a lot of my team and Bird Dogs going to spend a
week working at Habitat even I was learning at these
week long or weekend events a lot of things about
houses. Now I also learned that we built them so fast with
so many volunteers that the city would have to come out
every day or a couple times a day to do their inspections.
When the inspector comes out you can see right then and
there what is going to pass, what the city requires for
something to pass. You can ask them some questions or
just listen in as they explain what must happen to bring
the project to completion. This can also help you if you
decide to go into the developing end of real estate
investing.
The key is the more you know the more likely you
will get a deal, and flip, rehab, or hold it to a pay check. I
like to compare real estate investing to a tool belt. When
rehabbing houses I want to have a lot of tools so I am
able to solve every area of rehab I can. The more tools the
more likely I can fix, repair, or build whatever I run into
on a property. The same with investing the more I know
6 my people are destroyed from lack
of knowledge.
Do you have any idea what the codes are in your
market? Do you know if something has to be permitted
or not by the city? Does your city require permits for
everything or just some things? Are you getting what
are called wholesale prices? Or real investor type prices
& labor that are at rock bottom prices?
This is where profit and loss is determined. Can this
asset you are thinking about putting under contract
really be a good deal? Is it going to cost a lot to rehab it
or is it just cosmetics? You see this is what separates the
long term investor from the want to be. I say this as
nicely as I can but especially with newbies, most the
time they don’t have a clue when it comes to rehab.
They get on the phone to sell a contract to a property
they have, and I ask one or two questions and I already
know they have never done the business.
So how can you learn the rehab business like a pro
regardless if you ever want to rehab you still need to
know the cost so you can pass that along to the end user
you sell to. The more you know the faster you can get
paid. This leads me to my favorite real estate used
scripture. I have trained thousands on this very
important scripture. It applies to many things but I
really like it for real estate investing!
Hosea 4:6
6 my people are destroyed from lack of
knowledge.
Yes you can gain the knowledge by reading books,
attending real estate meetings, purchasing real estate
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