![]() ![]() These details help build trust and establish your reputation as a trusted real estate rehabber. If possible, include how you handled previous projects (e.g., pay schedules, scope of work, etc.). This includes background about yourself, your goals (would they be able to work with you in the future again?), the kind of relationship they can expect from working with you, and what you’re looking for in a contractor. The first step is to create a professional document that helps market yourself to potential contractors. You can find contractors via your investor network, websites, job boards, your local building department, supply houses, or local real estate associations. You must take your time in picking the contractor you’ll share your real estate rehab deal with. Your contractor will either make your rehab project easy or hard. If you sell higher than the going rate, buyers will shy away from your property. Your final scope of work is what you will present to prospective contractors that will, in turn, bid on.ĭo not forget to compare your home value after renovations with those available in the neighborhood. Remember to always budget for unanticipated problems. Also, look at possible material you can reuse instead of buying new.įinalize your scope of work based on the cost estimation of each project. Remember, you can do away with optional ones, in case it goes beyond your budget.ĭetail everything that needs to be done for every single repair or renovation, down to the last fixture, faucet, or furniture. ![]() To budget more efficiently, prioritize each renovation as Need, Want, or Optional.Įstimate the cost of each project. Go through your planning notes and list all renovations needed (e.g demolitions, removals, floor installations, etc). This is where you detail the extent of the project for your contractors to see every major or minor renovation. Your scope of work relies heavily on your pre-rehab planning. This will save you time since you won’t have to meet them each time they need to access the property. This will help share your vision with your contractors.īonus tip: It’s never a bad idea for a fix and flip investor to have a lockbox and spare key on the property for whenever contractors visit. This time, itemize the repairs and improvements you would like to see, down to the last square meter. When done, create a sketch of the property. Should you install carpets or flooring? How about the color and style? Take note of improvements that up the value of the property. The improvements that help sell the house: Is there a particular room that needs more sunlight? Maybe installing a bigger window, or perhaps a skylight, would help. Take a flashlight with you for those dark corners and rooms. Your photos can also give you before-and-after shots of the house to show your clients. Take photos of problematic areas and accurately measure the repairs needed. These will help you gather a more detailed assessment of the property. Repairs needed: During your on-site visit, take with you a camera, graph paper, and measuring tools. When creating a plan, there are two things you need to determine: You first need to carefully assess the property to ensure all aspects of the real estate construction process are on course. Kicking off your rehabbing project entails more than a cursory look at the renovations needed and hiring a contractor. Stage the property and host an open house. Get started by applying for the necessary permits.Ĭomplete another walk through and make the final payments for the job. Organize your critical documents and prepare for the rehab process. Walk through the property to get a better idea of the work that will need to be done.Ĭreate a scope of work outlining the specifics of the rehab project. It will require preparation and hard work, but by following these steps you can help ensure your rehab property is a success: ![]() Luckily, learning how to complete a real estate rehab is not as complicated as it may seem. How To Rehab Real Estate Properties in 8 Steps
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