Consultation

 

When you choose one of the services of the Rehabber’s Superstore we will provide you with free consultation on the acquisition of one of our wholesale properties, guidance on obtaining a rehab construction loan, and contacts for a host of proven construction services. You get to take advantage of our experience and network.

Most novice real estate investors lose money on their first, second, even third real estate deal because they do not have full knowledge of the business. It is true that you can make a lot of money. It is also true that if you don’t understand this business you can lose a lot of money. If you don’t quickly learn from your mistakes you will soon be looking for another line of work. We will help you greatly increase your chance of making money on your first rehab project. We will show you how to avoid the rookie mistakes that many investors make. Let me share with you a few of these:

  

Follow The System:

 

When rehabbing a home there is a systematic way of doing things efficiently and cost effectively. Applying drywall before finishing all your plumbing work is not smart. I have seen this happen far more times then one could imagine. This causes serious problems for the plumber. But wait, there's the electrician, as well. When the plumber has to cut through the drywall to fix the cracked pipe, he will certainly charge you more money to do this. And then, you write out a bigger check to the dry wall guy for work you could have avoided. The cost you may incur from this mistake is somewhere between $500. And $1000. Next time you decide to renovate a home I suggest you work the system like this:

 

	Demolition/Hauling		A/C
	Framing		Plumbing
	Roof		Drywall
	Windows/Doors		Paint
	Electric		Trim work

 

Of course each project requires a little different mix of subcontractor help.

  

Inspections:

 

Failing to call in an inspection is a serious mistake. This will cause several problems. If you apply drywall before calling in a framing inspection, you will certainly fail the inspection. A failed inspection is just the start -- for your neglect you can expect to pay a red tag fee. A red tag fee can range from $30 to over a hundred. This will depend on the inspector. The red tag fee must be paid before you call in any other inspection. If you fail to pay the red tag fee and continue doing work on the property the inspector can place a Stop Work Order.

 

If the inspector places one of these signs on your property your chances of rehabbing the house on budget and on time is over. Now you will have to go to the Building Permits And Construction Service department and plead your case. Simply put, if you fail to call in an inspection you will pay the consequences.

 

Smart investors understand the inspection process. For instance, before you can call in for a framing inspection, rough-in electrical, plumbing, and A/C must have been inspected and passed. Then you can call for framing. To get a better understanding of the inspection process, call your local building permits and construction services department.

 

Working Without Engineering Designs & Permits:

 

Some investors try to get by without pulling permits on their rehab project. If the property only needs minor cosmetic work done then pulling a permit may not be necessary. But, you better be sure!  When the property needs major work start with an engineer who will provide you with "approvable" plans. Secondly, pull permits. Having engineering designs and permits on the job will help the job move smoothly.

 If you try to get away with not pulling permits and get caught by the city inspectors this is going to hold up the project 4 to 8 weeks. The city will put a Stop work Order on the job until you respond with engineering designs and the proper permits. It will take you at least 2 to 4 weeks to have an engineer design your plans. Prepare to wait another 2 to 3 weeks while the city takes their own sweet time reviewing your plans. Before you know it you have wasted 4 to 6 weeks before you get back to work again. All because you decided to cut corners by going without engineering designs and permits.

I suggest you work with an engineer to design your plans, stamp and seal them, then submit them to the city for review and permitting. Working without designs may appear to save you money. But that is short sighted. When it catches up with you, you will lose money.

 

It’s your decision!

 

These examples are only a few of the many mistakes that a novice investor can make. But, when you work with the Rehabber’s Superstore, your chance of making money on your first rehab project is greatly improved.