He who knows job costs wins!

It seems so simple. Like such common sense. 

Yet in my experience 99% of the time when a deal goes south and we didn't make as much as we planned it's because we as investors or contractors did not do a good job counting the costs up front. Yep it's happened to me too many times.  

Wholesalers: are super optimistic or they would fail! It's a tough job. However, your optimism must not cloud your numbers. Realistic after repair values and realistic renovation numbers are the only way to structure the deal from first contact with the seller all the way to the assignment of the contract with the rehabber. 

Rehabbers: To win, know true cost of acquisition, renovation, and sale of the property! The profitability of the project is in the details from your initial inspection of the property, until your closing attorney hands you a check!  Track budget to actual as you go, don't approve changes until you have figured out what the changes will affect and if there is any way to mitigate it so it does not affect the bottom line. Laser sharp focus is the only way I succeed at this. When I get undisciplined and start laying tile or fixing drywall, playing with my new sprayer or what ever distracts me. The next thing you know the bottom line suffers. 

If you do the work you'll make more money?  No you won't. I'm a state licensed contractor and when I do the work on my own projects I don't make more money! 

As a wholesaler. When you are realistic and detailed in your evaluation of a property it will allow you to negotiate a better deal and assign the contract fast. Because it really is a good deal! 

As a Rehabber: Set up a detailed and realistic budget for your acquisition costs, renovation costs, and sales costs. You will also want a daily production schedule. Review the budget and schedule with laser focus every day! Be realistic and then do everything in your power to keep every job on schedule and on budget. 

Never stop learning!