All Forum Posts by: Shawn Parsh

 Thank you for your input. We closed on the house a couple weeks ago and have started the rehab. I've been traveling a bunch so it has been a little slow so far, but I expect it will be done and back on the market in the next 30 days or so. 

Daniel,

I think you are on the right track by building a team that can advise you on the real estate business in general and on the specific market you want to invest. You need to do your own research on the areas you're interested in as well. See what's selling with what features in what areas. Also reach out to other investors in the area to gain their input. One way to do so is by joining the local real estate investment clubs.

As far as doing the work yourself, I did the same thing for years. What I have learned is that I make a lot more money when I focus on finding and negotiating the deals not doing the rehab labor. I can find quality people to do what rehab needs to be done, but finding the right properties, keeping a stream of investment options coming, and negotiating the deals is harder to train in my opinion.

My knowledge, and yours as well, helps me know what right looks like. Contractors cannot feed me a line of bull about what something is going to cost and how long it should take, because I have done the work myself for years. I use my experience to guide the contractors I hire and to ensure they are not costing me money. In the end it is your business and you have to decide how to run it. I just thought I would mention that just because you have the skill set to do the rehab labor doesn't necessarily mean you should be doing the work. 

Agustin,

Regardless of where you are going to invest you need a team of people around you to make your real estate investing business successful. To start a qualified realtor who knows your market well and has a proven track record. Qualified real estate attorney, an asset protection attorney, an insurance agent licensed in the market, contractors, and other investors are just some that come to mind. When you have a team around you they can help you decide on neighborhoods and types of properties that are in demand in your target market. 

Andrew,

From my perspective I would rather just obtain control of the properties and do the rehab without having a partner. I'm not a big fan of having partners on deals to start with, but having a partner who has investment properties that are in disrepair would be a warning sign to me. 

I agree with those that have commented that what sells better in one area will not in another. If you have a decent team around you they can advise on finishes. 

Samantha,

It sounds like you do a little staging which is what I have done for years. I would echo the comment that if you want to stage the whole house I would hire a company to do so for the reasons given. I would look at the cost and ask your team if the extra expense will be made up on a higher sales price or a quicker sale. You could always try it once and see how the numbers work out. For me, I have never staged the entire house. 

Easton,

If the property is occupied I would knock on the door. I have done it many times and it often separates me from the competition. 

Wyatt,

  I would echo many of the points made by the others. You need to build your team for your real estate investing business. You need a quality realtor that can advise you on current value and after repair value estimates. You need an insurance agent, a real estate attorney, an asset protection attorney, and varies contractors for starters. Lean on your team to make decisions, but know in the end it is you who has to make the decisions. 

Make sure you learn your market well. Track what properties are selling, with what features, how fast, and for how much. Also track what properties are renting for and what areas are in demand. Make sure you calculate the estimated rehab cost, and hold time. Only make repairs that make financial sense. I usually add something to a property that the buyer would not expect at the price point. For example, I often put in quartz countertops in the kitchen when properties at a similar price point do not have them. I find by doing so my properties move quicker. 

There is nothing wrong with doing most of the rehab yourself, I did a lot of them in the beginning, but know you will likely make more in the long run if you hire out the work. I learned a long time ago that I should spend my time finding and negotiating the deals not rehabbing the properties. In the end there are many ways to make money in real estate you just have to figure out what works for you as well as what you enjoy. Good luck. 

Mathew,

From my perspective you need to talk with local real estate investors and a quality realtor to determine what is needed as well as paint choice options. As a general rule we always use some kind of neutral color for houses we plan to sell, and have used a light gray many times with success. I would not replace the kitchen cabinets if they are in good shape, and would defer to a local real estate agent on whether to paint them. I can tell you we have painted cabinets that looked dated many times and it gave them a fresh clean look. If you only have one bathroom in the house I would not eliminate the tub. It might not matter for most buyers, but why eliminate any potential buyers who want a tub. 

Start building your real estate team, join if you haven't already a local real estate investing club, watch your market to see what is selling with what features, and track what properties and areas are in demand. Good luck.

AJ,

 That is a judgment call. You are correct that you will likely have to repaint them occasionally if you choose to paint them white now, but the place will look fresher in my opinion if you do. Personally, I would paint them.