House By The Lake!!!

[Moises R Cosme]

11 Scenic Ave Webster, MA

1. $106,000 acquisition price
2. $45,000 renovation budget
3. $245,000 estimated resale price
4. Potential profit: $80,000

How we sourced it: cold calling pre foreclosures

Things we did right: 1. We found the Seller & got them on board, 2. This was a short sale, so we referred the Seller to a Broker that has experience with short sales, 3. We worked with the Broker on fulfilling any requests for the property (the Seller lived in Florida and the property was vacant, so we did some of the running around for the Seller & the Broker)

Things we did wrong: 1. We missed two betterment liens when we went through our initial purchase diligence, the real estate negotiator caught them and the bank paid them BUT this transaction revealed a flaw in our diligence process. Solution: one of the partners will review the diligence sheets thoroughly & spot check them, particularly as it pertains to outstanding bills with the town/city. 2. We missed that the property was cut over to city water instead of well water, in fairness the clerk at the city told us that the property was on well BUT we should have been more adamant about it. We knew the water was on the city line because one of the betterment liens we missed was there to cover the cost of the upgrade from well to city water. Solution: use common sense & prepare for clerk errors.

Order of Operations:

1. Clean out
2. Demolition
3. Plumbing rough
4. Electric rough
5. Heating
6. Flooring
7. Sheet rock/blueboard (after rough is approved)
8. Plaster
9. Paint
10. Kitchen installation
11. Finish work/Exterior deck work

Things to keep in mind if you have NOT done a project yet:

1. Do NOT start your demolition until you obtain your permit
2. Some towns require that you have a dumpster permit as well (Webster requires a dumpster permit)
3. Have your measurements for the kitchen cabinets, the sink and your bathroom sink BEFORE you have your plumber or electrician come out

1. The electrician will need to know: size & placement of your refrigerator, size and placement of your dishwasher and the dimensions of your cabinets, placement of your washer and dryer
2. The plumber will need to know: size & placement of your refrigerator, size and placement of your dishwasher, size and placement of your kitchen sink(s), size and placement of your tub, size and placement of your bathroom vanity

1. For demolition purposes it is important that you have a conversation with your plumber and ask them exactly what they will need removed in order to have the access they will need to complete their work

2. ALWAYS have your plumbing work completed first, plumbers require the most space

3. ALWAYS get your trades done first, getting these done first will allow you to effectively manage your renovation budget. IF you have a big cost overrun on any of your trade work, it is simple to adjust the balance of your work by downgrading finishes or removing ‘nice to have’ items.

How did our mistakes affect our project so far? Had we had the water on, on the first work day for our plumber it is very likely that the rough would have been completed the same day. We have built in slack in our project schedule, but it is never good to miss an opportunity to get ahead on a project.