REHABBING: How to Start

To start you need to find discounted property to fix up, please check out articles on wholesaling or buying.

When buying distressed property to rehab and then to resell for a profit you better have your numbers right. Here is what you need to know:

1. What is the area value of similar homes in great condition?
2. Do a market analysis, which a realtor can help you with.
3. What will the property appraise for after the repairs?
4. When calculating do not take your best guess on this!

Some of the things you need to consider when rehabbing and reselling homes.

1. The size of the home
2. How many bedrooms
3. How many baths
4. The layout of the house and property
5. Stay away from bad neighborhoods
6. Only go after areas with a high owner occupant ratio, stay away from rental areas
7. Be careful of no garage
8. How does the property drainage look
9. Does the home have central air
10. How high are the property taxes
11. What are the schools like
12. What does the kitchen look like is it modern or old

You can sell in any market just make sure you have the best house on the block.

Get everything ready.

Contractors

1. Line up contractors to do your rehab projects.
2. Interview them and get references.
3. Have them sign a contractor agreement before the project starts.
4. Have penalties if they are late on finishing the project.
5. Over estimate repairs and make sure you negotiate price with contractors.
6. Ask around at the REIA Club, who are the best contractors to use.

Set Up Shop

1. Get a phone line for business or use VOIP phone (Internet phone).
2. Set up LLC (Check out our legal section)
3. Get a fax
4. Get a good fax, copier and printer.
5. Signs to sell and buy homes (Bandit).
6. Website to add legitimacy.

Financing

1. Find hard moneylenders.
2. Look for private lenders to help with purchase and rehab.
3. Can use banks but not recommended.

Education

1. Make sure you know what you are doing.
2. Study rehab courses and keep studying.
3. See if someone in your area can help you by giving advice, or visit our forum for help.
4. Keep coming back to our website to learn and ask questions.