June
Are you a Rehab Rebel? I’m super excited about this latest project – my brother and I are rehabbing a house here in town, and we’re documenting the progress to show you what happens throughout the entire rehab. We’re going to take this run-down property and turn it into a fresh, welcoming and inviting house – all in 4 weeks! Keep an eye on the right side of this page to see the latest updates, videos and photos! In the mean time, give me your feedback on the questions I mention in the video that you just watched, above. I want to hear what you think about rehabbing! As a reminder, here are the questions:
So leave me your feedback here, and keep checking back for progress on our rehab project! 90 Days To Make 40K… BOA Adds Staff to Help Troubled Homeowners Bank of America has added 2,000 employees within the last two months – all in an effort to better handle borrowers who are having trouble paying their mortgages. That brings the total to 18,000 dedicated to “default management” for the second largest US home-lender. It represents a 60% increase since January 2009. Together, the default management team tackles 100,000 phone calls each day. The president of BOA’s home –loan and insurance unit, Barbara Desoer, said, “Given the depth of the nation’s recessionary impacts on homeowners, a considerable number of customers will transition from homeownership over the next two years. We must compassionately and responsibly help those customers who have exhausted all their options and can no longer afford to stay in their homes.” BOA handles one in every five home mortgages. They are stalling on foreclosures until homeowners have exhausted all other efforts to modify the loan terms or make other arrangements to resolve the loan, such as short sales or deed-in-lieus. What does this mean for you? It’s simple… more opportunities! |
Week 1 Day 1: The 1st Walk Through Week 2 Day 8: Demolition Week 2 Day 11: Framing Week 3 Day 15: Starting to put it all together Week 4 Day 22: Getting closer… on track & on budget Week 6 Day 39: 99% Done, On the Market! Part I Week 6 Day 39: 99% Done, On the Market! Part II Facebook Fans |
44 Responses
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2009 we did two REO rehabs and made a total net profit of $62000.
In 2010 we have completed 3 rehabs.
2 are listed as active, and
the 3rd we will be closing 6/23/10 for a gross profit of $69,000Details are as follows:
– Purchased short sale for $64,000
– Repair cost $32,000
– Total cash investment from private money $96,000
– Closing 6/23/10 for $165,000
– Net Profit will be around $59,000Note: SS only took us 3 weeks with Bank of Colorado.
Would love more info on rehabs….
June 18, 2010 at 6:19 pm
~Will~ -
Yes, As Long As I’m Not Swinging The Hammer!I Am/Was A Professional Carpenter.2.I Have Many Friends That I Have Done The Rehabbing For,But Now I Like Working Smarter Not Harder.{Still Love It Though,}3.My Time Is Better Spent Finding More Deals!4.How About A Blue Print For JV’S Or Partnering Say 50/50 On Apartments Like 20 Or More? Short Sales On Commercial Properties Are Coming Like The Next Wave.TIMING,TIMING,TIMING…
June 18, 2010 at 9:35 pm -
Josh,I’m The Homeless Guy Who Won The Mac Lab Top & The WII In Vages A Couple Of Years Back.BLESS YOU And GOOD LUCK On Your Rehab! [ It's Not That Hard ] Paul B.
June 18, 2010 at 9:42 pm -
1. haven’t completed any rehab and don’t have the to purchase one.
June 18, 2010 at 11:05 pm
2.0
3. Very interested in rehab.
4. very interested would like more information.
5. no -
Yes I’m interested, no I have not done any rehabs. No background in construction. Have a few people who would be interested in working with me on a rehab. No I would not pay big bucks, $199 would be my max. Living pay check to pay check as is with little to no time. I’m more of an organizor and research person, let my team do the bull work. Can you provide a hard money lender for first few deals?
June 19, 2010 at 12:51 pm -
Hi Josh & bro.Mark, whew, this waz a urging-thought to express both the candid approach of sharing possibilities of your Scope of “real-Estate,”Puzzle”!Like most, [not] interested in ‘books & tapes into the thousands of dollars!I am a Shriner/32*degree & trying to get a foot/hold of where it gives a person a fishing-net & he can feed Family & a portion for charity, all for yrs to come! I’ve done some “Rehabbing!It was not the mrkt to sell @ thee time! Yes, very interested, to pay my “Dues”!I would be [very] interested of the Blue-prints, to where the “Rubber” meets the road! Willing to front an investment,time,hardwork,airplane-tickets Plus, go to the locations & actually put some of my talents,for the actual increased value!Given a chance, I would prove-up to be a ‘worthy’ team-player! Do you return phone-calls of sincerity??[360]332-5122/ [360]332-1516!
June 19, 2010 at 5:16 pm -
Hi Josh,
June 19, 2010 at 6:41 pm
Yes I am interested.No I have no experience with rehabs,besides I barely know how to use a hammer.Let alone how the rehab would cost,leaving me to depend on the word of a contracter.
I am disabled and therefore on a fixed income,so I could not spend more than 200 dollars on the course,which I am very interested in if what you say can really work. -
Why are you doing rehabs? I thought you were making money with Short sale flips? Something changed in the market? Should I be looking at rehabs now? There are too many bad contractors out there that charge too much. You need a trusted source to work with. A lot can go wrong. Maybe this is the way to go at least you are in more control than the short sale.
June 19, 2010 at 6:54 pm -
I know a little about reos, short sales and rehabbing would be my favorite part of the business. I have worked residential construction for a few years now. Have done no rehab deals yet but really want to. Market is hot in my area. Would love the blue print and if I knew I could make 60k in 6 months, the education would be priceless to me. Just need a money partner…..
June 19, 2010 at 11:48 pm -
I love how you are sharing with others. I am a Rreal Estate agent/want-to-be Investor. I have helped enough investors buy foreclosures and then I would act as the Froject Manager on ‘Mini-Rehabs’ and when ever I find a good contractor that works good for me and charges a fair fee, well I learned that I can not ever not be there. Every time I thought I could trust hime, and I wasn’t there, he let me down. But my daughter is coming back to Atlanta, and we are going into business of Buying/Fixing & Flipping. Her first husband was an investor and she learned a lot from him. She can paint & stage and she is a tough Project Manager overseeing those guys. I will do the marketing since I am an agent but I’ll also video the projects.
June 20, 2010 at 6:36 pm
You’re in inspiration as a family that works together. God Bless you’ll -
Dear Josh,
June 21, 2010 at 7:28 pm
Yes my son and I have done a bunch of re-habs and usually made very good money, in Dec 09, Jan & Feb 10, we sold 3 houses we re-habbed and made 64K profit here in Cincinnati. I also lost money on a money pit re-hab, partly because I partnered with an inexperienced Realtor who wanted me to mentor him, he sold one of my 08 re-habs where I netted 25K profit. If he did not force his will on me, I had a buyer with great income who would have bought the property on a land contract, with over 25K down, we could have re-financed and not lost a penny. The lesson I learned was to never partner with someone who has much less experience than me, He was afraid to hold. We need to flip in a sub chapter S in an LLC, and Hold in a sub chapter K, in an LLC.. My inexperienced partner cost me a ton of money because of his STUPIDITY. What I don’t like about re-habs is tying up large amounts of cash, until they flip. Usually if the house is re-habbed professionally, the first or second looker buys the property. Right now I have paid cash for 3 houses and am remodeling all three, and the finished one has not sold as of yet. The lesson learned on that 3 bedrm brick ranch with basement, is ALWAYS INVEST IN 1.5 TO 2 BATHS OR MORE HOUSES.-
I have worked as in construction Project Management, as an housing inspector and did some rehab myself. I have someone who I can work with if you will provide the finances to do the rehab,
June 21, 2010 at 7:42 pm
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I am a seasoned rehabber, I’ve done more than I can count, some for other people, and many of my own; it’s how I started in the RE investing biz. What I’ve learned is, no matter what your skill is, if you are a serious investor and you are in the game to MAKE MONEY, then, YOU never, never, never swing any hammers yourself. Even if that’s what you love to do… if that’s the case, wait till you’ve made a ton of money, then go do that stuff for fun. Rehabbing is a study in team building. Build the right team, implement the right system and it’s a goldmine. I am personally more interested in doing quick flips right now, without having to buy and hold long enough to turn out a rehab. I would be interested to see what you guys have to say on the subject, because I know, good investors never stop learning. I would pay maybe $50 for a book, and possibly 300 to 500 for a course. I can’t say how much on “coaching” because I haven’t seen many coaching programs that were actually worth the money.
June 21, 2010 at 7:39 pm -
I am a seasoned investment property re-habber, having completed projects numerous project on Washington DC’s Capitol Hill (very hi-end),and about 40 total rehabs in Baltimore, MD (vast majority section 8 rentals. All of my experience has been working with investors and their properties. Now I am learning as much as I can to obtain my own investment properties.
June 21, 2010 at 8:46 pm -
Hi Josh:
Julio and I are in the middle of a Rehab, this one is a complete rehab, and so far is funn but little pricey ’cause our budget already double up. we will share the pictures with you in about 2 weeks, they are from day 1. yes we are going to make money, but dealing with crews is a little hard and our experience on this is short. We bought in 96 k and thinking on a resale of 180 k with 20k in repairs.
June 21, 2010 at 9:55 pm -
Sergio – I only wear overalls with no shirt around my house. When i rehab i dress up
June 21, 2010 at 9:59 pm -
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Nicholas – I love your comment about Never Never Never swinging a hammer. I have done over 25 major rehabs since 2004 and never never swung a hammer. I suck at it. I’m a numbers guy. I hire a great team including a project manager who runs the show. They get it done. I tell them if the project comes in on time and on budget i’ll give them a bonus or buy them beer. They love it.
June 21, 2010 at 10:02 pm-
Do you hire a project manger Josh or do you do it? Ive been burned in the past. i find I meet deadlines and get it done right when I mange them instead…but in the Spirit of remaking my business ( CONTEST!) I am delegating this sort of stuff now, Right???
June 21, 2010 at 10:51 pm
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Hey there Josh –
Love the video!! I would absolutely love to Rehab! That is what initially drew me into Real Estate investing and something my husband and I would love to tackle together. He could do it all himself but he wants to head up all the contractors….. since we aren’t getting any younger
Haven’t done any yet but put offers on aobut 5 homes since last summer….
June 21, 2010 at 10:04 pm
Still looking into doing rehabs on top of the short saless initiative. -
Hey Josh, I have done numerous rehabs over the years and still enjoy it. Lately, I have a contractor who does all of the work and funds the rehab work only to be paid when the house sells for his work plus a percentage of the profit for managing the project. I fund the purchase price of the house and have final say in what work will be done during the rehab.
June 21, 2010 at 10:26 pm -
Thanks for the questions, Josh, but I am one who is not at all interested in rehabbing. In fact, I had to leave when workers were replacing all the windows in my home–couldn’t stand to see my house in such disrepair. Sorry. However, I must admit everything looks wonderful now. I appreciate those who can and will rehab.
June 21, 2010 at 11:52 pm -
Been there, done that. I no longer fix & flip. Made money on the ones we did but I’d rather move quicker. I don’t like the contractors – they NEVER do what they say and never do it on time. They always find ways of adding to their prices. Wholesaling is the hot ticket for me.
June 22, 2010 at 12:13 am -
Hey Paul – How could i forget you man. You know i gave you a lifetime membership to our BUSINESS MASTERY coaching program for FREE! Not kidding. I was so inspired by your story. Hope all is well. You can call the office anytime at 440-545-2073 if you need anything.
June 22, 2010 at 2:01 am
-JC -
Hey Josh, you are the F*ck!N man!!! I always wanted to tell you that
I own two rental properties from using your SREC The Short Sales Success Blueprint! I couldve flipped but I decided to hold and pull equity for more projects.
Either way I know thats off subject
I just wanted to thank you!
June 22, 2010 at 2:37 am -
1. yes i am, I have done them in the past for another investor and thats what got me into real estate to make the big bucks like he did.
June 22, 2010 at 3:57 pm
2. yes I done tehm but they where for my old boss and he maid money off of them.
3. one reasone I might not be is lack of money to buy a house and fix it up.
4. yes that would be nice a step by step process to follow would be great.
5. how much, well you can take it diff ways, have a book, or membership site as well as some program that you put numbers in to see if it will make money for us, also this would be a great coaching program you could offer to your students, price tag 500-1k you could also partner up on deals with us to fund deals and do a split with the students -
Hi,
I don’t do rehabs for one reason. I can’t get hold of one Hard Money Lender who will fund my deals.
I’m sick and tired of BEGGING.
June 22, 2010 at 6:03 pm -
Yes I am interested in rehabbing
June 23, 2010 at 12:43 am
No I have never done a rehab
Plan to do rehabs later. Feel confident that I can succeed at rehabbing as I have experience working with architects, contractors, sub-contractors, and suppliers.
Yes, I would be interested in a planned blueprint especially figuring the costs.Don’t have any idea what you should charge. I do believe that whatever you create will be something that users will be able to understand and follow as all your training is clear and easy to understand. -
Yes I am very interested in rehabbing. Never done any. I’ve been watching videos and signed up for all the sites but don’t have any mentors in my area of Spfld, Ma. Looking for someone to show me the ropes, love getting my hands dirty and swinging a hammer, also love to learn more as I gain experience in rehabing. Money is tight but willing to sacrafice.
June 23, 2010 at 6:38 am -
My rehab experience is a bit backwards, but probably not uncommon. I purchased a home, lived in it, remodeled for myself, then moved, rented it, then sold it. I’ve done this twice. Both times I had no intentions to move, since I was planning on living there, I rehabbed to suite myself, but life (job)changed, so I moved.
There is a ton of money to be made in rehab, and it is part of my master plan to have that as an income stream.
I really do not know how to price things out, sould I start my own general contracting company, should I hire one, should I piece meal it out to contractors, how do I know I’m not getting ripped off, HOW CAN I AFFORD THIS NOW?
I would be happy to split deals with someone willing to partner.
Depending on what is included in the class, will change what you should charge for the course. A basic blueprint and pricing guide is excellent and might be a good and inexpensive start.
June 23, 2010 at 1:02 pm -
Great video. You are really straight forward and people will appreciate that.
Love your suggestion on how to handle contractors. I am an agent in Woodstock, GA and I have helped a l of investors buy and then I oversee contrators I have used. I think it is time I make a profit instead of 3% and then after my Broker gets his fee, I realize around 2.5% and on $100K that is not very much. So if you know of any money men in the Atlanta, GA area please give them my name and number. If I may I will leave my name and number and if that is not proper I understant.A Plus Choice Properies
June 23, 2010 at 11:30 pm
678-294-6548 -
I would say if you have only done 25 rehabs in the last five to six years you also still have a lot to learn. Its sounds like a lot to the average Joe, but seasoned rehabbers will do that amount in a year.
June 23, 2010 at 11:37 pm -
Q1:
Yea we are interested in rehabbing properties…Yes we are still working on it…Yes we are interested in learning more.Q2:Yes a FSBO,it’s currently giving us $300.00 mo. cash flow.
Q3:Working capital.
Q4:Yes we want a “blueprint”
Q5: $47.00 + 50% split profit on first deal
June 24, 2010 at 1:19 am -
I never hear how properties are purchased at such deep discounts. Are these needle in a haystack deals? Do you have to research and make 100 offers to get One Good Deal? I live in Los Angeles (South Bay) 0-7mi from the Ocean. The Lenders seem to hold out for top dollar even on the distressed properties. Short Sales get 2-4 Appraisals & BPO’s sometimes. Deep Discounts are usually for rare properties so damaged they cannot be financed traditionally. I have invested away from where I live, but needed to be around to manage projects, or lose profit/control if I hire someone. I would pay $500-$1k for REAL info that works in an Urban Area like L.A. I would welcome a Network of Profit minded individuals each bringing talents into Partnered Deals. Skin or Sweat in, Profit Sharing out. I enjoy your enthusiasm and content.
June 24, 2010 at 3:33 am -
1.) yes & no. I would need the wherewithal for the project so I am focusing on other strategies right now & that effects my interest. Later i would definitely be interested.
June 24, 2010 at 6:33 am
2.)No
3.)See above
4.)At a later time
5.)$500. – $1000. -
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Enjoy your rehab vidios. There is always something you can learn that will help. My biggest challenge has been we do not have a lot of bank owned in my area and what there are there are mutiple offers from so called investors that do not know how to use the ARV -65%-repairs. I do not use the extra -20% and am always way low!I enjoy rehabing and will keep on making offers, eventually one will stick!
June 24, 2010 at 1:58 pm -
1 & 2. I’ve done 20 rehabs, only 1 that I flipped. I made very little money on the deal so no, I’m not real interested in rehabbing as a way to make big money
3. Acquisition costs are low but rehabs require a large amount of material paid for at retail, large amounts of time on oversight of contractors and subs, retail buyers who can get financing, large carrying costs, cost overruns due to hidden problems or over improving. It’s a bigger headache to me than the less messy varieties of investing.
4. Kathy what’s-her-name has written the book on rehabbing to retail. I question what would be different in your blueprint
5. Do you even want me to answer this question?
I thought you guys were the short sale, don’t-get-your-hands-dirty investors and coaches. What has changed in the market that suddenly has you touting rehabbing? Homes that I see don’t require much work unless they are beaten up former rentals in really bad neighborhoods. Rehabbing should add value to reap the reward – I’m just not seeing how this will be a better strategy than wholesaling. Convince me!
June 24, 2010 at 2:12 pm -
I am willing to do it, last time I tried I did not have money for the closing costs, my credit is not worth and I did not know where to go next.
June 24, 2010 at 2:25 pm
Your blueprint will help me a lot to start my first deal.
Great job, guys, thanks. -
I love watching the progress of other people’s rehabs. I am afraid to tackle this by myself. I see many possibilities within my sweet spot – there are many homes around here that could use an update. I worry about creating the team needed for a successful rehab- after all, look at all the “disaster rehabs” on reality tv!
So.. while it is interesting, I don’t think this is the path for me to take now. I am gathering contacts around here, so when the opportunity arises I will have the team ready to go.On a fashion note- the polo shirt is a colorful change away from the black.
June 24, 2010 at 3:47 pm -
Rehabs are like restaurants. You have to be on top of them or you’ll loose control of the project and get stolen blind. So it is the labor intensity of it, and the learning curve, that keep most investors out. Your proposed manual? You haven’t answered the usp querry. What is radically different about it in the turn key, fix up manual arena?
June 24, 2010 at 5:26 pm -
rehabs scare me, but I know they can be a profitable source of income. I hope that any properties I get under contract won’t be too bad off, just minor needs. Look forward to to reading your stuff.
June 30, 2010 at 9:13 am
Gabriel
U.S. Note Investors
http://www.money4iou.com -
I think you should be wearing overalls with no shirt! LOL
1-Yes.
June 17, 2010 at 10:04 pm2- Yes, have done rehabs. I have a construction background.
3-Interested but I hate managing crews and subs and the time factor.