Rehabbing for New Real Estate Investors – Winston Rowe & Associates
Learning how to rehab properties can provide you the best chance of developing a sustainable real estate business.
By: Winston Rowe and Associates
Inspect the Property
A thorough home inspection is important before the closing, and you should prepare notes on each room.
Hire A Contractor
A contractor can either make or break your rehab project, make sure to hire a licensed, insured and qualified professional with referrals or online reviews.
Create the Scope of Work
Creating an in-depth scope of work (SOW) document for your real estate rehab project is important as this establishes a clear and comprehensive project plan that your contractor can use to provide accurate bid proposals.
To create your SOW successfully, you should:
Go through your initial planning notes to list all renovations you intend to make, such as demolitions, floor installations and removals, etc.
Estimate the cost of all projects. Note that you may do away with optional ones if they exceed your budget.
Detail everything that you have to do for every single renovation or repair, down to the last faucet, fixture or piece of furniture.
Finalize your SOW based on the cost estimates of each project.
Acquire All Necessary Permits and Paperwork
As a real estate investor, you may need to obtain some permits from local authorities before you can start the renovation work on your investment property.
Some of the tasks that may require permits:
Working on a public sewer line.
Changing the plumbing.
Cutting down trees.
Failure to obtain a permit can lead to fines and penalties, and you may even be ordered to tear down the renovations you have already made.
For many people, the overall real estate rehab journey may appear overwhelming and intimidating, especially if they have no prior experience.
However, by breaking down the rehab process into different stages, you can make rehab real estate investing easier and more achievable.
This article was prepared by Winston Rowe & Associates a national consulting firm; they can be contacted at https://www.winstonrowe.com