Well, this is my last blog of what has been a really fun and educational experience. Talk about something being bittersweet. I’m going to miss being around my classmates and the instructors, Tim, and Jim. Fortunately, I was able to forge some great friendships and business contacts throughout the program, so I’ll be able to keep in touch with what is going on with folks from my class. A great thing Invest Success does is they have a Facebook group and upon completion of the course, everyone can keep in touch and continue to learn by asking questions in their forum. So, there’s always a place to reach out to current and past students, as well as the instructor’s if you have any real estate investing topics of conversation.
The classes we took this past month were “How to Fix Your Project” and “Exit Strategies.” Again, as in the previous month, we were able to do some property tours, walk around the homes, and have Tim Emery and Jim Edenfield walk us through the rehab potential of each property, and how to budget for the work that needed to be done. I’m repeating myself here from last month’s blog, but I feel it’s important to reiterate how valuable it is to have the knowledge of experienced investors when looking at properties. Whether it be a foundation issue, roof issue, or layout issue, they have the eyes and the brains to help you through it. This class truly is a value, what you learn will give you such dividends on the money that you invest in this course. And as usual, they let you come to your first class for free to see if it is a fit for you, so you have nothing to lose, and everything to gain!
How To Fix Your Project
One of the most important parts of flipping is finding the right contractor. This class went through step by step how to choose the right contractor for you, and how to manage them. For example, Tim was discussing choosing the cheapest contractor or the most expensive contractor. Both may be the incorrect decision, so don’t just rely on the pricing. Ask them for references of past jobs they’ve done, and photos of their completed work. Some questions to ask the references would be, are you happy with the work the contractor did? Was the job completed in a timely manner? Was the quote/estimate accurate to what the finished product was? Another important thing Tim mentioned was that a lot of contractors ask for 50% payment up front. Tim says avoid this as much as you can as this can delay the start of your project as the contractor has the money and can move on to other projects instead of starting yours. All great advice! The “Fix” class consisted of the following points:
- The importance of having your scope of work done before close
- Owner supply items
- Contractor selection
- Contractor expectations
- Contractor contracts
- Rehab Responsibilities
- Change orders
- Financial Tracking
- Contractor etiquette
Being in this class it was great to hear examples and stories of contractor selections gone right and wrong. Also, ways to keep the contractor and his/her subs happy throughout the project to ensure a successful and timely rehab. The other great thing is you get a real sense of what your budget will be and what to expect when it comes to adding contingencies to your budget.
OK, the job is done and it’s time to reap the rewards of your deal! Is this a fix & flip, buy & hold, BRRRR? Although this is a decision that is usually made before the actual purchase, this class focuses on how to market the property specifically for the exit strategy you choose. An example Tim gave was the time of year you plan on doing your project. Will it be complete for the summer buying season, or right before the holiday season in November? The time of year can greatly dictate what your exit strategy will be. If the project is ready for the summer rush, a flip exit may be the way to go, or the same property may be a better hold as an exit if it’s the holiday season. Each of these exits would most likely change the scope of work done to the property. If you’re flipping, you’re likely to have higher-end finishes such as appliances and countertops to help get top dollar, whereas with a hold to rent the property, you’re more likely to go with rental-grade finishes. This is definitely something to consider when you’re choosing your exit strategy. With this class, you get great templates for contracts, marketing materials, and ideas for getting the most return for your project. This class consisted of the following topics:
- Market trends
- Retail sale (For sale by owner/MLS listing/Realtors)
- Selecting the right sale price
- Staging: yes, or no?
- Curb appeal
- Renting the property (includes how to find the right rental rate)
- Rental agreements
- Finding good tenants
- Property managers
- Tax deductions and benefits
- Lease option/rent to own
- Alternative strategies
My favorite part about this class is the great marketing materials and templates you get from taking the Invest Success class. In general, you get a ton of templates that save you so much time and money if you were to do them on your own.
Save Time And Money With Invest Success
In conclusion, look into taking this class if you’re serious about investing in real estate. Invest Success will save you time and money in the long run, plus you’ll create a great network of like-minded individuals that can help you, and you help them to achieve your goals as investors. They are happy to have you sit in on a class to see if it’s a fit for you, so again, you have nothing to lose and everything to gain. If you’d like to reach out to me to discuss the class, I’m happy to do so. Just call our office at 303-835-4445 and ask for Howie.
You can find more information about Invest Success on their website, https://invest-success.com/