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Replacing Roofs for Rehabbers PDF Print E-mail
Written by Paul Esajian   
Monday, 01 March 2010 19:03

Roofing tips for Rehabbers to Get the Most Value For Money


When we retail properties we must understand & evaluate the psyche of our end user. Remember our end user is our client, consumer, & customer all in one. When investors rehab & sell residential housing we must think like our end user. First of all we only want the best for our clients, so the functional integrity of the roof is imperative. Secondly all consumers, which refers to the individuals or households that purchase our rehabs that we put out to the marketplace, need to be sold with selling features. A new roof is a great selling feature for any consumer.

Finally, in order to sustain a long term business and build a solid reputation you need to be confident that all your customers are satisfied with the product you deliver to them. By selling a rehabbed house that needs a roof replaced within a year you will not build a strong customer base. The decision to replace the roof needs to be fully understood before you buy the property. If you buy a property that needs a new roof but it is not in your rehab budget, you will be better off not buying the property. In your decision of replacing the roof or not, you must ask yourself, ìWill it deter me from selling the property if I do not replace the roof?î If the answer is yes then the decision is simple, replace the roof!

Pay now or pay later, if a roof looks questionable to the naked eye I will usually replace the roof. If you do not replace the roof on your investment property that looks like it's at the end of its useful life then you will most likely get negotiated down on the offers from your end buyers that view your finished product. Although itís obvious to replace a roof that leaks, it takes more foresight to replace a roof that may, by mere appearance, deter eventual offers. This is where ones knowledge base & hands on experience come into play.

I look at it as paying now to incur the cost of replacing the roof in order to have an additional selling feature to help my property distinguish it from the rest of the inventory. By doing this I save significantly on holding cost and days on market. Remember, I typically get full price offers within the first two weeks of my initial listing. This is procured by making these important decisions in the rehab that add to a long list of selling features and distinguishing points once my property is For Sale.

The outline below is a cheat sheet to the essential points on this decision for Replacing Roofs

1. When do I replace a roof?
* When cupped & curled shingles are blatantly visible
* When more than three layers of shingles are present
* Over 20 yrs old, useful life is coming to an end
* Obvious leaking &/or holes in existing roof

2. Most common problems in the decision to replace a roof
* Flashing around chimney causes most ìunknownî leaks
* Eaves, valleys, & dormers are high probability spots for water penetration
* Gutters draining directly to foundation
* Improper or no displacing of water run off
* Shoddy roll over job, instead of implementing a full rip & reply

3. Design Points when you replace roofs
* Make sure to contrast the roofing shingles to the body of your house
* Architectural shingles will hide imperfections in a roof line in comparison to three tab shingles which have no texture to the design.

4. Liabilities of doing work when replacing roofs
* Highest risk in using non-insured workers on a roof, there is to much liability with putting unlicensed & uninsured workers on a roof that you own.
* Again, even if a roof is functional but it looks old & ugly this will deter eventual offers of your investment property. This will be the most common argument to a retail buyer if the roof looks to be at the end of its useful life

Paul Esajian,star of 'Flip This House' and  Co-Founder of FortuneBuilders Inc. is one of nation’s premier young real estate investors and speakers. As an expert in Rehabbing Systems & firm believer in what Creative Real Estate can achieve, Paul shares his wealth of knowledge any chance he gets.  Paul is currently running a multi-million dollar real estate investment office and filming a national TV show.  As a national speaker he is totally committed to helping other investors obtain financial freedom by teaching them his systems designed for buying, fixing and selling homes.  Paul’s systems are some of the most advanced in the industry and his students around the country are making FORTUNES by replicating them!



Last Updated on Monday, 01 March 2010 19:06
 
How To Stage Your Property to Sell Part II PDF Print E-mail
Written by Paul Esajian   
Thursday, 25 February 2010 22:13

Home Staging Tips for Investors Guaranteed to Make Your Property Stand Out From the Rest


If you consider Home Staging as an extra, a nonessential, you are poorly mistaken. Putting the final touches on your rehab with staging is an essential step in the sales process for all Real Estate Investors.

While consulting a peer last week, I was surprised to hear that he did not think staging was an essential part of the rehab process. I asked him, how long his last rehab was on the market for and you know what he said? He answered back with a sense of pride, it was on for 85 days, a month less than the average days on market. I could tell that this gentleman was not a student from our school of thought. Any full rehab should be under contract in less than 14 days after it is completed and staged.

We often have rehabs under contract in less than a week. One of the reasons why is because we make sure it is staged perfectly before we let our first prospects walk through. I informed the gentleman of this and he was very attentive to the rest of our conversation.

Below are more staging tips that will get you started on selling your rehab for the maximum price in the minimum amount of time.

What positives will you enhance and what negatives are you going to limit exposure too? A good example of limiting a negative would be, if you did not replace a bathtub, make sure you put a shower curtain up and then enhance the other features in the bathroom. Place nice soaps and candles on the new vanity.

Pick a wall hanging and coordinate the colors of the towels and the bath mat. Now that you have an idea what you want to accomplish with your staging, sit down and write a list of what you need for each room. You need to put together a shopping list, be as specific as possible; you don't want to waste time shopping. Don't forget extra light bulbs and air fresheners.

Home Staging Tip: Furnishing.

For your average Rehab, you do not need to fill the house with furniture. You only need to paint the picture and have your buyer imagine their own furniture. If you get a buyer that walks through and points out where they would put their couch and their TV, then you will get an offer; they are sold. It is easy to place a small dining room table in the dining room. Be sure to set the table so it is the focal point of the dining room. Nevertheless, if you are selling a high end property it may be advantageous to rent larger pieces of furniture.
Home Staging Tip #6: Accessorize.

The majority of your staging will consist of accessorizing. I typically use a lot of candles and mirrors when staging a home. You can decorate the kitchen with many accessories that will stimulate your buyer to mentally move into the house. I use towels and a floor mat to bring in color. I like to have yummy smelling candles lit or a pot of coffee to awaken their sense of smell. When having an open house you can always put some cookies in the oven. The smell is wonderful and your buyers will be able to snack on them as they walk thru.

It is always a great idea to have bottles of water and juice boxes cold in the refrigerator. The longer the prospective buyer is in the home, the more likely they are to put an offer in. Another simple idea is to put a vase of fresh flowers on a small table in the master bedroom.

Home Staging Tip: Review.

After you put your finishing touches on the property, take a step back and examine. Keep an eye out for clutter. Make sure you have highlighted the key rooms. Take your final pictures and start walking buyers thru.

The Home Staging Tips above are a great place to start!

Paul Esajian,star of 'Flip This House' and  Co-Founder of FortuneBuilders Inc. is one of nation’s premier young real estate investors and speakers. As an expert in Rehabbing Systems & firm believer in what Creative Real Estate can achieve, Paul shares his wealth of knowledge any chance he gets.  Paul is currently running a multi-million dollar real estate investment office and filming a national TV show.  As a national speaker he is totally committed to helping other investors obtain financial freedom by teaching them his systems designed for buying, fixing and selling homes.  Paul’s systems are some of the most advanced in the industry and his students around the country are making FORTUNES by replicating them!




 

Last Updated on Monday, 01 March 2010 19:06
 
Home Staging Tips to Get Your Property Sold Fast PDF Print E-mail
Written by Paul Esajian   
Thursday, 25 February 2010 22:04

Home Staging Tips that Every Rehabber Needs to Know to Get Maximum Profits


After the last trim is painted and the appliances are installed, you have one more crucial step that will ensure you a quick sale, STAGING.

For those who are not familiar with STAGING, Staging is the process of creating an emotional experience that leads sellers to make buying decisions much quicker and easier. Staging is a pivotal element in your real estate investing business that does not take much effort, but yields in immense benefits. Bottom line - Staging sells your property faster, which allows you to see your profits sooner.

Staging is simple; you want the buyer walking thru the house to envision themselves living there. You want them to visualize where they would put their furniture, where they will have dinner, and enjoy a movie. Staging does not have to be complicated. You can have a lot of fun and showcase your style. Here are few tips to help stage your rehab:

Make sure your rehabbed house is clean from all debris, inside and out. You want the house cleaner than if your mother-in-law was coming over for Thanksgiving dinner. Make sure you don't forget the window sills and little nooks and crannies, dry wall dust gets everywhere. Be meticulous in the kitchen and baths. You should feel comfortable eating your next meal off the floor.

Home Staging Tip #2: Bring a friend or family member.

This person needs to not have an emotional connection to the house. You want an unbiased eye to help highlight the positives and distract from any negatives.

Home Staging Tip #3: Pick a Staging Point.

Go to each major room in the house (i.e. Kitchen, Bathrooms, Living room) and select an attractive part of the room to highlight. An example in the living room would be a fireplace. Simply put a mirror or painting on the mantel with some candles and a few logs in the fireplace and you just staged! It's simple as that. Now your buyer is able to visualize enjoying a roaring fire on a chilly winter night in their new house!

Take advantage of these staging tips before putting your flip house on the market. Your goal is to enhance the WOW factor a buyer gets as they preview the property. This will maximize your time.

TIP #1 CLEAN, Make sure your contractor cleans up after themselves every night to ensure time isn't wasted when you are ready to clean.

TIP #2 Also talk to your friend or family member that you are going to involve. Tell them what your objective is, as they will be more helpful if they know your goal.

TIP #3, you can save a lot of time by picking the features in advance that you want to highlight. If you are unsure of your own style, donít be afraid to ask a store clerk or friend for help. You can accomplish half the work of staging before your project is finished. Stick to a tight time line and don't waste a minute. Every wasted minute is narrowing your profits.

Paul Esajian,star of 'Flip This House' and  Co-Founder of FortuneBuilders Inc. is one of nation’s premier young real estate investors and speakers. As an expert in Rehabbing Systems & firm believer in what Creative Real Estate can achieve, Paul shares his wealth of knowledge any chance he gets.  Paul is currently running a multi-million dollar real estate investment office and filming a national TV show.  As a national speaker he is totally committed to helping other investors obtain financial freedom by teaching them his systems designed for buying, fixing and selling homes.  Paul’s systems are some of the most advanced in the industry and his students around the country are making FORTUNES by replicating them!

 

 

 




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