Description
Book SynopsisTHE HOUSE-FLIPPING HOW-TO THAT TURNS EVERYDAY PEOPLE INTO ENTREPRENEURS Everyone likes the idea of turning the ugliest house on the block to the best house on the block and making a profit. Until now a system has not been shared on how to successfully complete this task on time and budget without getting your hands dirty.
Table of ContentsIntroduction: The Decision 1
An Overview of the Seven-Stage Rehab System Described in This Book 3
Part I Getting the Rehab 5
1 How to Make a Profit On Your First Deal 7
Master Rehabbing Now 7
Our Biggest Obstacle 8
My Story 9
The Opportunity 12
Think Like an Investor—Not a Contractor 12
2 Never Lift a Paintbrush: Why Doing It Yourself Is the Biggest Mistake Most Rehab Investors Make 15
Where Most Investors Fail 15
The Story of How to Do Everything Wrong 15
Think Like a Business Owner, Not a Consumer 17
Value Your Time by Outsourcing MWA Activities 19
Defining a Residential Redeveloper 19
3 Finding Properties to Rehab, Professionals to Work with, and Opportunities to Explore via Network Marketing 21
The Power of Networking 22
Working with Other Investors 23
Becoming an Effective Networker 29
Perfecting the Process 31
4 Use a Stamp to Find Properties to Rehab: Direct Mail Marketing 37
Direct Mail Simplified in Three Parts 37
Send Your Mailings Consistently 38
Step 1 to a Successful Direct Mail Campaign: Determine Your Budget and Plan 39
Step 2: Identify Your Target Market and Obtain Your Lists 39
Step 3: Set Up Your Multi-Letter, Drip Marketing Campaign 44
Step 4: Set Up Your Inbound System 48
Step 5: Fulfilling Your Campaigns 49
Step 6: Track Your Mailings and Stay Organized 49
5 Finding Properties to Rehab: Online Marketing Secrets 53
Developing a Company Website 53
Create an Online Presence 57
Social Media and Online Communities 62
Craigslist Marketing 64
6 The Three-Step Rehab Deal Evaluation Process 69
Step 1: Phone Analysis 69
Step 2: Desktop Analysis 73
Step 3: In-Person Analysis 80
7 Financing Rehabs: How to Leverage Systems and Other People’s Money (OPM) to Fund Your Deals 83
Funding Deals with Private Money 84
How to Find Private Moneylenders 87
Funding Deals with Hard Money 89
Seller/Owner Financing 92
Subject-To Financing 93
Self-Directed Retirement Accounts 95
Wraparound Mortgages 96
8 Writing and Making Offers 99
Know Your Offer 99
Master the Art of Successful Negotiations 100
Determining the Seller’s Needs 101
The Property Walkthrough 104
Present a Strong Offer 104
Handle Objections Effectively 105
The Purchase and Sale Agreement 106
9 Estimating Repairs on Properties 119
The Goal of Your Property Walkthrough 120
Our System: The Repair Estimate Sheet 120
Exterior 122
Interior 129
Quick Tips to Look for That Add Value to a Residential Home 138
Common Mistakes When Estimating Repairs 139
Part II Managing the Rehab 141
10 Stage 1: Take Pictures, Measure Everything, and Decide What Needs to Be Done 143
Prepare for Your Rehab 144
Property Walkthrough 145
11 Stage 2: Your Most Important Job—Creating a Detailed Scope of Work 147
How to Develop a Scope of Work 148
SOW Kitchen Example 149
SOW Bathroom Example 153
The SOW Layout 158
Create Your Bid Package 160
Do Your Comparables Match Your After-Repair Value? Double-Check Your SOW 162
12 Stage 3: A System for Hiring the Perfect Contractor 163
Contractor Credibility Packet 163
Finding Quality Contractors 164
13 Stage 4: The Six Critical Documents: Must-Haves for Your Rehab 175
Verify Contractor License and Insurance 175
The Six Critical Documents to Provide and Execute 175
The Timeline and Order of Executing the Six Critical Documents 182
How to Get Painless Permits: Why You Will Love the Building Department 183
14 Stage 5: Managing the Rehab: Getting the Work Done On Time and On Budget 187
Contractor Kickoff Meeting and Communication 187
Rehab Milestones That Help You Stay Organized 188
15 Stage 6: Contract Closeout and Final Payment 191
Final Certificate of Occupancy 191
Final Punch List 192
Final Lien Waiver Executed 192
Final Payment to Contractor 192
16 Stage 7: Final Touches and Home Staging: The Secret to Getting Your House under Contract and Sold 193
Get the House Professionally Cleaned 193
The Art of Staging 194
The Power of Professional Pictures 196
Your Final Walkthrough with Your Buyer Hat On to Prepare for Sale 197
The Three Buying Criteria of Every Potential Buyer 198
PartT III Selling the Rehab 201
17 The Selling System 203
Preselling Your Rehab 203
Marketing Your Property Online 205
Building a Buyers List 206
Listing Your Property 209
Working with Agents 210
How Much Does It Cost? 212
Having an Open House 212
18 Common Selling Mistakes 217
Mistake 1—Leaving the Property Unsecured 218
Mistake 2—Skimping on Landscaping 219
Mistake 3—Failing to Maintain the Property 220
Mistake 4—Forgetting About Outdoor and Landscape Lighting 221
Mistake 5—Failing to Incorporate Sizzle Features 222
19 Postgame Analysis: How to Make Even More Money On Your Next Rehab 225
Postgame Analysis 225
Post-Rehab Accounting 228
Three Major Areas of Accounting for a Rehab 230
Financial Closeout System 232
A Step-by-Step Review of Accounting for a Rehab 235
Part IV Owning and Growing a Business of Rehabs 241
20 How to Fire Yourself: What Every Entrepreneur Must Learn 243
The Training Process 243
Building a Team 244
Outsourcing and Automating 245
21 A Roadmap to Keeping and Growing Your Wealth 247
Entity Structure 247
Money Allocation Strategies for Your Rehab Profits 248
Investment and Retirement Strategies 249
Conclusion The Secret to Sustainable Success: Living and Giving with Passionate Purpose 259
Your Impact as a Real Estate Investor 260
Paying It Forward 260
Follow Your Why 261
Index 263
