EXIT STRATEGY(HAVE ONE IN PLACE)
I read a lot of posts about people rehabbing properties and then being stuck for six months or so afterwards trying to sell the property. I have been a bird dog for a local investor for almost a year now and have learned many things from him. I just bought my first house. Anyway, the way he works a rehab project is before he buys the house he talks to his appraiser to find out how much the house will appraise for after the rehab. If the numbers work, he buys the property. Immediately following the purchase, he starts working on the house. Also, he lists the house for sale in the newspapers and puts a FSBO sign in the yard. Some people will look at the house pre reahab and say no way. While others can see through the repairs and see what the house will look like in the end. Every house I have helped him to buy, he has had sold before the rehab was completed.
I agree with that strategy, I've even had tenants approach me while fixing up a place to see if they can rent it before or when it is finished.
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I considered doing that with my 1st rehab. Did he find that people who expressed interest in a property while he was working on it wanted a say in the work he did?
I agree to a point. I think it is important to haul away the junk and also clean the place up before anyone sees it.
People can see through construction mess but can't seem to see through dirt and grime.
If you're guy is like me then he likely buys the ugly of the ugly.
GOOD LUCK
I like ugly...Ugly is always at a deep discount. I just bought my first one and she is UGLY.
Hey,
There are several problems with people viewing a house that is going through rehab:
1) Very, very few people can "see" what a house will look like when it is complete. They get turned off and do not bother looking again.
2) Someone viewing a house that is going through rehab is a SERIOUS liability. When they step on a nail, guess who is going to pay?
3) They end up wasting your time. I do NOT put any For Sale or For Rent signs up, until the house is finished, but people still drop by and want to look. I end up wasting 15 minutes of my time.
While I appreciate your comments I was simply stating a method that has been very profitable for us.
I agree about the liability factor. I never really looked at it that way but I guess that is why we have insurance on homes. As far as those that can't see what a house will look like, well, I will keep showing until I find one that can.
Waste of time.....Who Cares? I wasted about the same amount of time reading and typing in this thread than I would have showing my house. 15 minutes of my time is always worth a potential profit of 25 thousand or more.
i guess it boils down to personel taste.........km
i agree with Greg ..My first rehab was a pain because i waited till it was pretty much finished and then started showing... next time i'll show it during the rehab stage and do a better job marketing....
There are good and bad as I read all these posts. I have swayed to the "get it done then show it side". One of the main reasons was my cousin had a number of tools stolen while people came through... He had two milwaukee self feeding bits disappear (40.00 a pop and can fit in your pocket etc) I get nervous when a large family comes rolling through and you can't keep track of everyone. The other thing is people see all your tools in there and know it's going to be empty and an easy score. I don't know about you guys but just off the top off my head I know I got several thousand dollars in tools in my rehabs that are there. I should start taking digital pics of all the nail guns, saws etc and serial mumbers so if it ever happens my homeowners will cover it. That was the fisrt question I asked when I left all my tools in my first rehab was if my tools got stolen would they be covered. Now I've never had anything stolen but I never rahab bad areas of town either. Just something to think about.
Guess I am conditioned to being in bad neighborhoods, I never leave tools on the site when I leave. As far as watching them when they come through, been OK with that so far. Of course, I'm not the one usually doing the heavy rehabbing, I hire others for that.
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