an azreia sub-groupfiles.meetup.com/11067002/5 24 2016 rehabbing... · * 2008 - 2011 flipped...

Tucson Real Estate Investor Networking Club

REHABBING

May 24, 2016

BY CRAIG BARTON

AN AZREIA SUB-GROUP

CRAIG BARTON

* 2004 - 2006 Manufactured Homes (land home packages) * 2007 First Wholesale deal and my first Flip * 2008 Educated on subject to, lease options, owner carry * 2008 - 2011 flipped REO’s took properties with owner carry * 2011 to present work all marketing strategies.

Real Estate Investor

REHABBING

INITIAL WALKTHROUGH

• Vision of a beautiful Home •  Time Estimation • Contractors to use

What should we bring?

•  Flashlight •  Crow Bar •  Paper and pencil

•  Digital Camera •  Repair estimator sheet •  Lock Box •  Copy of keys

What should I be thinking about?

Who is Your Buyer?

Repairs, layout

and Flow

Pictures (all angles)

Think about

handling objections

before buyer sees the home.

ABS

(always be selling)

what is going to sell this house?

What Sells a Home?

* Neighborhood * Layout, Room count, Kitchen, * Master * Condition (sizzle features) * Feel * Price

VIDEO

https://youtu.be/Yc4Ni-RmlQI

REHABBING TIPS

•  Small Houses (2 bedrooms or less) •  Small Master Bedroom (stay 12x12 or bigger) •  Busy Street •  Bad Location/ War Zone •  Bad layout, low ceiling •  No carport or garage •  Bad lot layout •  Commercial or mixed use area •  Junkie neighbors (Clampets) •  Bad renovation

Tough Issues:

Contractors and Bidding

“ A good boss makes

men rea l i ze they

have more abil i ty

than they think they

h a v e , s o t h e

consistently better

w o r k t h a n t h e y

thought they could ”

- Charles Wilson

SCOPE OF WORK

Scope of Work is to a rehab

like a screenplay is to a movie.

SCOPE OF WORK

•  Detailed description of work needed (Most important step)

•  Should create a visual of a finished house •  Allows for less arguments or

discrepancies with contractors

•  Controls the job on paper (colors, materials, appliances, etc.)

HIRING CONTRACTORS

Websites or job sites (angle’s list, bidcleark, bluebook,

Home advisor)

Supply houses (Home Depot,

Lowes)

REIA’s

Referrals Building department

What do we look for?

· What do they sub out? · Are they financially stable? · What jobs are they working on now? · Previous clients or jobs completed, references

· Experience (at least 3 years) · What tools do they own? · Are they licensed? · How many employees do they have?

Introduce your Company

•  We are a Redevelopment company affiliated with investors in Tucson

•  We outline the project from start to finish and pay on time

•  We are in this business for the long haul

Six Critical Documents

· Permits · Materials · Insurance · Subcontractors · Work Schedule · Completion schedule 3 General Responsibilities

#1 Independent Contractor Agreement


#2 SCOPE

OF WORK


#3 Payment Schedule

Bench marks for payments


* 1 million in liability insurance

* Proof of liability / worker’s comp

* Your company named as additionally insured

#4 Insurance Indemnification Agreement


#5

Filled out before the project starts


Never make a final payment

before work is completed.

#6 Final unconditional waiver and lien

Additional Documents

* Change order form * Final Inspection check list * Builder’s risk & Vacant Dwelling Insurance

“Motivation is what gets you started. Habit is what keeps you going.”

THANK YOU

-- Jim Ryun

BidOnHomeNow.com ASecureInvestor.com FlipWithCraig.com 1EZBuyer.com 1EZSeller.com

Thank you

CRAIG BARTON