It was Easter Sunday. As the church service finished, my wife and our five kids excitedly piled into the car to enjoy a delicious Easter dinner and other festivities at my mother’s house. But when I pressed the button to start the engine, something unusual happened – a first for this particular vehicle – the engine would not start. The car would not move. It would not even crank.
Thankfully, a good Samaritan came along, and with a little patience and some jumper cables, we were able to get the car started. We made it to the dinner and had a lovely time with the family. But the next day, the question remained: what was wrong with the car?
I took it to the local dealership and shared the details of our experience with the service desk. I explained that although the car would now start with no problem, all kinds of blinking lights had begun to appear on the dashboard. Without even opening the hood, the dealership’s immediate solution was to replace the battery. They went on to recommend installing a new battery for $500.
That’s $500 for a new car battery. Seriously?
Thankfully, I know a little bit about cars. Enough to know that batteries are, for the most part, all the same. Yet this dealership was trying to charge me $500 for a product that AutoZone sells for $238. I should know - I had stopped by AutoZone for a preliminary check on the way to the dealership and they told me that the battery was okay!
I had not felt the sentiment of being taken advantage of in a long time, but this incident reminded me of what many real estate investors go through every day when dealing with contractors. The truth is that whether you are talking about car batteries, paint, roofing, or sheet rock - if you don't know what things really cost, you will end up paying more.
What are the true costs of rehabbing a property? How much should you spend per ton of air conditioning? What is the cost of painting a house with labor vs. without labor? Should you change the electrical panel? How important is it to know the basic cost elements of a real estate transaction? I believe it is of paramount importance.
That is why I'm personally inviting you to attend our live REIA Meetup (aka the Memphis Investors Group) event this month. There have been many changes since the pandemic, and some prices are very different than they used to be. That is why it is essential to get reacquainted with basics. Marketing is wonderful, as is finding a great deal, but mastering the basics on what things cost is a key ingredient to keep you from buying “$500 batteries.”
We will be talking about one the primary items most investors overspend on – ROOFING – and will share reputable, honest, and hard-working roofers that we personally use. We will also help you gain confidence when dealing with contractors by giving you ‘rule of thumb’ cost estimation benchmark to get them to finish on time and on budget. Finally, on the Saturday following the Thursday event, we will take you to the field to do live cost estimations on 2-3 properties.
No, there will no sales pitch, no coaching packages no turnkey providers. I'm a burnt stick that got pulled out of the fire. This is about building a community. You reap what you sow, and I want Memphis to be a great place to live, play and invest. You can see my BiggerPockets commitment here.
Please sign up and let us know if you're coming! Sign up through Meetup app. We will have food and breakout sessions prepared for you, along with sponsors and vendors that will help you go further in your real estate goals. Most importantly, you will have a great time getting reacquainted with old and new friends.
Lord willing (and if the car battery works), I'll see you this Thursday!
From the Shingles to the Slab, the true co$ts of rehab
