Different Strokes

One thing I have learned from the extensive reading I have done here on Bigger Pockets is that there is no right way to conduct business in the real estate world.  When I was trying to decide how to pursue real estate investing I found successful people and tried to learn how and why they do the things they do.  I quickly learned that there are a million ways to pursue just about any type of real estate investing.  I decided to start with rehabbing to raise capital and eventually get into rentals as well.  I quickly discovered that there are many ways to go about rehabbing and selling a property and they can all be successful if done correctly, however a few things were constant:

#1)  The purchase price is where most of the money is made in this market. 

#2)  Accurate estimates are critical to analyzing a deal.

 

The differences come into play with the management on the process of the rehab.  Some investors prefer to hire a general contractor and remain hands off for the bulk of the project.  They often do not have the time to manage their rehab projects and some feel their time is more valuable spent in other areas. 

 

Other investors choose to do the work themselves.  They are very handy and often times have a construction background.  This is great because they save big on labor costs (although there is a cost for their time).  This is a great method for those with the skills to rehab a property with minimal assistance. 

 

Another approach (the one my company uses) takes a hands on approach, while using contractors to complete the work.  Using this method allows the investor to stay involved in purchasing materials, hiring contractors, and managing the project while not physically doing the labor.  We prefer this method as we enjoy the ability to control the rehab and make decisions when necessary.  While this method may or not be the "best" it is the best for us.  I encourage all new investors to consider the different methods to investing real estate and figure out which method suits them.  I have seen people claim that they have found the best way to do business, but I believe they meant to say they found the best way for them.

 

Be sure to check out our website at www.kandvinvesting.com