Renovation Gurus

Real Estate Investor Rehab and Residential Renovation and Remodeling

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Real Estate IQ – Residential Rehab Budget How-To

 

WHY RENOVATION GURUS?

“Just like a home, businesses also need a solid foundation in order to produce quality work. With honesty, consistency, affordability and integrity as the pillars of this company, we pride ourselves on offering clients superior renovation services. We are honored that you are considering us for handling your invaluable assets and will strive to uphold an unmatched level of work.”

– Renovation Gurus

 

 

Items That Are Easily Missed on a Rehab Bid – Part 2

Ron Carlson continues this two part series over items that are easily missed when a bid is being created. The majority of theses items are smaller but they can add up quickly.  A few items Ron talks about are the prep work that goes into a painting project, driveway repairs, sprinkler systems, etc. Listen in to hear the full list of items that are most commonly missed!

Watch the video here: https://flipnerd.com/show/rei-classrooms/items-easily-missed-rehab-bid-part-2/ 

 

FULL TRANSCRIPT:

Mike: Welcome back to the flipnerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Ron: Hey everybody, my name is Ron Carlson and I’m with Renovation Gurus, and I am a general contractor in the Dallas/Fort Worth area, and today I will be your host in the REI Classroom. I want to talk to you today about items that are easily missed on a rehab bid. This is part two of the one of two series of items that are easily missed.
Mike: This REI Classroom real estate lesson is sponsored by theinvestormachine.com, FlipNerd’s private investor coaching program and your blueprint to investing success.
Ron: So, continuing on from my prior discussion, items that are missed, trash and debris haul off. It is unbelievable how much trash and debris you’re going to have at a property. It’s one of those things that’s almost impossible to calculate, but rather, you’re just doing a small little paint job or you’re doing a full rehab, you have trash. Trash will be at the house. Calculate for it, and probably calculate extra for it, because you will have way more trash on a rehab than you could possibly think or imagine.
Landscaping, a lot of people miss, especially the major items when they’re doing, let’s say landscaping lights or the trim. Some people will put mulch on there, but then miss say, the landscaping trim bed or stones or rocks, bushes, things like that.
A lot of people will put to paint a property, but they forget that before you paint a property, you have to paint prep. So, a lot of times you need plastic. You need masking tape. You’re going to be taping off some of the wood, maybe taping off the trim, depending upon if you’re doing the doors and trim a different color. You have a lot of masking tape and a lot of plastic, and with the paint prep also comes the texture, the hole patches, that type of thing. That is an additional expense on top of actually painting the house itself.
Broken rafters, a lot of times, especially in Texas where we are, it looks like the property has foundation problems, and it might, but sometimes that causes broken rafters. Broken rafters typically look in a house as if it’s just need some sheetrock damage, or it looks like somebody might have fallen through the roof, something along those lines. But the rafters are actually broken. It’s a structural problem most of the time and very easily missed because the rafters are typically covered up by insulation inside of the attic.
Mailbox, whether it’s at the front of the house or it’s at the street corner, it seems that people walk past the mailbox, and it doesn’t even exist. It has no address on it. The mailbox is absent, but most houses need a mailbox.
Driveway repairs, you can pull into the driveway. Your car will be sitting on a bad driveway, and you don’t realize that it needs a driveway, whether concrete or asphalt or stone or whatever it is, but sometimes we just overpass the driveway because we’re so excited to look at the interior and exterior of the house.
On a final clean, a lot of contractors, when they do a final clean, they do a construction clean, and that does not include windows. If you want your windows clean, make sure that your contractor is bidding you up properly to clean both the inside and the exterior of the windows. Some contractors will only do interior or only do exterior, and you need to make sure that’s on your final bid.
Numbers on the driveway, numbers on the house, numbers on the mailbox, for some reason, the address is missed. Sometimes they cost $3, or $4, or $5 per number, and you know, depending on what you do, spray paint them or you get the numbers, they’re missed. And it’s one of those little things that you can add to your house that’s going to make it pop when the buyer walks up to the property.
Sprinkler systems, they’re always hidden in the garage. They’re always hidden in a closet. For some reason, we miss sprinkler systems completely, and you might want to look one, to see if a property has sprinkler systems, and two, get it tested.
Smoke alarms, every smoke alarm in the house, if it has a battery, you need to replace the battery, and we miss them. You need them in the rooms. You need them in the common area, and you need them in the hallway. If the hallway turns, you need another one.
And hardwired is the best way to go, but we always miss smoke alarms and then fire extinguisher. You should have at least one fire extinguisher if not two. Some cities require it in the garage and under the kitchen sink. Those are just a couple of items that are easily missed that you might want to budget for in your rehab.
My name is Ron Carlson. I’m with Renovation Gurus. You can reach us at 855-99-GURUS or email at admin@renovationgurus.com.
Mike: Are you looking to change your life through real estate investing? If you’re interested in either getting started or taking your business to the next level, please check out FlipNerd’s private program at theinvestormachine.com. This is the most robust real estate investor coaching, networking, and mastermind on the planet and designed for your success.
If you’re ready to roll up your sleeves, ready to take personal responsibility for your own success, and ready to dive into a world-class instructional coaching program that provides you step-by-step instruction to help you achieve financial freedom, then you should apply today. Spaces are limited and candidates are only considered after an application and interview process. Our 12-month investor program is unparalleled. Think you might be a fit? Learn more today at theinvestormachine.com.
Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect those of flipnerd.com or any of its partners, advertisers, or affiliates. Please consult professionals before making any investment or tax decisions as real estate investing can be risky.
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Please check out the FlipNerd family of real estate investing shows, where you can access hundreds of expert interviews, quick tips, and lessons from leaders across the real estate investing industry. They’re available at flipnerd.com/shows or simply search for FlipNerd in the iTunes store.

 

Making Sure Your Contractor Writes a Bid That Protects You

Ron Carlson explains how having a contractor write a bid correctly can protect you if things go south. By being detailed in the work that’s being done, there’s transparency for both parties.

Click below to watch the video and learn more about why the bid writing process is so important, especially if you run into issues with the contractor. By having everything detailed out in the bid, it’s clear of what’s owed by both parties.

 

Picture of a chalk board and Ron Carlson with a lesson on real estate investing with contractors

 

 

Tricks Contractors Use To Get Your Business – REI Classroom with Ron Carlson

REI Classroom lesson #480 features Renovation Guru’s founder Ron Carlson.  As Ron Carlson explains, there are some tricks that some contractors use in order to get your business. Ron shares what they are so that you can be aware when looking for your next contractor.

It’s important to protect yourself from contractors who may not be up front with you. They might tell you they’ve done jobs as big as yours (but haven’t) or underbid the job (and ask for more money later). There are numerous ways they can trick you and Ron shares them with us today.

  • The general contractor’s business model.
  • How many crews the contractor has?
  • How staffed is the general contractor?
  • How good is their communication with you?
  • How far away from the project are they located?

Ron Carlson discusses why this information should be important and what red flags should warn you in the beginning.

Watch the full lesson here: https://flipnerd.com/show/tricks-contractors-use-get-business/

 

Change Orders in a Rehab Job

Synopsis:

Ron Carlson talks to us today about the need for change orders in a rehab job, but how to do them the right way.

From making sure everything is on paper to having a buffer in your budget for changes, there are strategies to help changes so more smoothly and help the project stay on track.

Brought to you by Coaching Labs at FlipNerd.

 

How to Decide Your Exit Strategy in a Deal

Listen to our latest Podcast from Joe Fairless, Best Ever Real Estate Investing Advice show.

 

Synopsis:

There may be many ways to enter a deal, but what do you do once you sign? Are the terms you negotiated favorable enough to allow a creative exit? This episode is for you! Learn the number of ways to exit a deal like “wholetail”, wholesale, or retail, it will save you thousands!

Ron Carlson Real Estate Background:

– Owner & General Contractor at Renovation Gurus
– Began as a wholesaler and built up enough capital to start flipping houses
– Speaker at REI Groups around the country
– Rehabs 15 to 20 properties a month
– Done over 200 transactions
– Based in Dallas, Texas

 

Source: http://joefairless.com/podcast/jf796-how-to-decide-your-exit-strategy-in-a-deal-skillsetsunday/ 

Your Hard Money Company & Contractor Working Together

By having the general contractor work with you so that when an inspector comes to see if the work has been done from the draw schedule, it makes getting paid a lot easier and keeps the job on track.

REI Classroom Lesson #382 features Ron Carlson of Renovation Gurus.  In this lesson Ron discusses why it is important to find a general contractor who understands how to work with hard money loans.  This lesson will help you keep a good draw schedule on your loan and get paid easier – all of which will keep your home renovation project on time and on budget.

The full lesson can be viewed here: https://flipnerd.com/show/hard-money-company-contractor-working-together/ 

382

Be Careful of Contractors (Part 1)…

REI Classroom lesson #394 features Renovation Guru’s founder Ron Carlson.  In it, Ron discusses how to find and work with general contractors including:

  • The general contractor’s business model.
  • How many crews the contractor has?
  • How staffed is the general contractor?
  • How good is their communication with you?
  • How far away from the project are they located?

Ron Carlson discusses why this information should be important and what red flags should warn you in the beginning.

Watch the full lesson here: https://flipnerd.com/show/careful-contractors-part-1/

 

 

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How to Work with Contractors

Flipnerd.com Expert Interview #313 features Renovation Guru’s very own Ron Carlson.  Click here to see the complete interview.

This show features:
– How to find contractors
– Different types of contractors
– How to avoid common mistakes with hiring and paying contractors

If you rehab houses or maintain rental properties, you’re going to learn a lot in this episode…so don’t miss it!

ron-carlson-share

 

Highlights of this show:

  • Meet Ron Carlson, real estate investor and general contractor.
  • Learn tips and tricks on how to find a reliable contractor.
  • Hear Ron’s advice on how to know when a contractor is ‘going bad’, as well as how to properly pay contractors.
  • There’s a right and wrong way to work with contractors…learn the ins and outs.

Hard Money Lenders in Dallas / Fort Worth TX

In an earlier article we discussed what a Hard Money Loan is and how they work.  We received many requests for recommendations of Hard Money Lenders in the Dallas / Fort Worth area so we put together a list of companies in North Texas that finance hard money loans.

For a quick recap, hard money loans help match real estate investors with capital.  For this reason, they are sometimes referred to as bridge loans.  They are also sometimes given other names like:

  • Cash out Loan.
  • Rehab Loan.
  • Asset based loan.
  • Buy, Fix, and Sell Loan.

Hard Money loans are typically private loans from a private investor vs. a bank.  They are favored by real estate investors because obtaining hard money from a private investor can be faster and more flexible than more traditional methods.  Additionally, some homes do not meet conventional underwriting guidelines.

There are many different situations in which hard money is a great option if available to the real estate investor.  Most important is speed – many deals are made or lost based on time and having financing lined up.  Hard money is also a great option on distressed properties.

For more information on Hard Money Loan, please read the full article.

If you are looking for a Hard Money Lender in North Texas, please consider the following:

Bay Mountain Capital

www.baymountaincapital.com

(214) 280-1254

Contact: Noble Madu

Bay-Mountain-Capital---Hard-Money-Lender
Emerald Dolphin Enterprises

www.emeralddolphinenterprises.com

(817) 939-9436

Contact: Taylor Weakley

Emerald Dolphin Enterprises - Hard money lender
InvestMark Mortgage

www.imhardmoney.com

(214) 219-0360

Contact: Mike Hanna

 Invest-Mark-Mortgage---Hard-Money-Lenders
212 Loans

www.Loans212.com

(817) 965-5019

Contact: Luke Shivers

 Loans-212---Hard-Money-Lender
Longhorn Investments

www.LonghornInvestments.com

(903) 692-0742

Contact: Adam Williams

Longhorn-Investments---Hard-Money-Lender
Wildcat Lending

(972) 525-4777 ext. 2 and 3

www.wildcatlending.com

Contact: Jeremy Rehwald

WildCat-Lending---Hard-Money-Loans