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40k FlipsModule 8: Mindmap Conversion to Word Document
8TH COACHING CALL
new locks o $15 each o 2 doors
$30 MAJOR SYSTEMS = $10,950
o order dumpster $450 a 1 40 yd. dumpster
o Windows $2,000 20 windows $100 each
o Siding Keep and wash and paint $1 ft. labor
$1500 1500 sq. ft.
o Paint 5 gallon bucket Roll on $120 7 gallons sprayer $200
o Gutters $300 materials $800 labor
o Doors $500 10 doors $50
o Roof $4,000
o basic landscaping $1,000 $200 mulch $500 plants
1 | P a g e
2-3 days o $1,000 Plumber o $1,000 Electrical
DEMO LABOR
o $10-$15 a hr. o cheap workers o want them to know what’s going on
some minor construction experience o 2 guys
40 hrs. 5 days $12.50 an hour $1,000
o drywall phase Materials are very cheap A lot of labor Here 2 guys
12.50 an hour 40 hours 3 weeks
o $3,000o PAINT
LABOR 1500 sq. ft. $1500 $1 a ft. just for labor 2000-2500 sq. ft. $2500
o MATERIALS $15 - $25 per gallon
(2) 5 gallon buckets paint $90 for 5 gallon 5 gallon ceiling paint
$75 One Coat of Paint Kills Paint $250 total
SUMMARY o $1750
kitchen 15 cabinets
$100 $1500
2 | P a g e
Standard Oak Neutral Cabinet RTA cabinets
o "ready to assemble" cabinets King of Prussia, PA
countertops $50 per piece 4 pieces $200 - $250
o pre-made Big Box Supply Middle Of Road
backsplash 20 ft. $5 $100 - $200 4 x 4 tumbled marble
o $3.99 a sq. ft. flooring
400 sq. ft. o $1.25 o $500 flooring o vinyl stick tile o $1 - $1.20 a foot
big box stores Lowes, HD, Menards
appliances $2500 stainless steel set labor
o 1500 bathroom
half bath o $300
full bath o $1000
does not include the tub vanity lights
o $30 - $50 on clearance
Labor o $750
washer / dryer $500
3 | P a g e
o resell store wouldn't know they are used look for ads and specials
Flooring house carpet $1.5 a ft. 600 sq. ft.
o $1200 w/ tax laminate hardwood
o $1 a ft. o 600 sq. ft.
$700 w / tax LABOR
o 1500 property launch
$100 ethical bribe $600 Jason $1000
o total home bonus package $1,800 - $2,000
o Builders Risk Policies American Modern Ins
o $100 a month or less AFFINITY GROUP KANSAS CITY
o Pay Up front for Full year policy o theft o dwelling o burst pipes are not covered
shut the water off at the main concerned about water leaks
flush mount lights buy bulk $10 a light
ceiling fan $50 - $75 fan with lights
o SUMMARY $30,930 60/ 40 split
$14,000 LABOR $16,000 MATERIALS
MOLD AND WATER HOUSES ARE THE BEST HOUSES!!!! basement
4 | P a g e
75% of the time it’s a sump pump issue the dumb banks turn off electricity and turns off sump pump
MANAGING MULTIPLE REHAB PROJECTS TEAM
o Project Managers Chris Russ John
o Checking on Projects Planning
o finding contractors price break nights weekends craigslist
tons of calls lots of junk calls
provide resume 1 out of 10 is a decent fit even the 1 is not perfect weeks if not months
Sections general labor section under "JOBS" real estate services labor / move under "SERVICES" pay starts low
o $12 - $15 - $18 an hour John
found at a rehab he was finishing stuff for bank
Chris craigslist
Jeremy friend of friend been with us for a year
Randy craigslist http://akroncanton.craigslist.org/lab/3839080556.html hated chasing money
act ignorant and see what they tell me what do you charge always ask for a resume send me marks resumes
interview questions
5 | P a g e
GET FROM MARK? resume first shocked by how many guys actually have a resume
o a lot of guys have a resume experience
look for experience at least 2 years construction background
phone interview most important are they honest? will you take $10 an hour?? what are they willing to take before we meet I’m a small construction company looking for help I have a small project going on and I need some help have you ever done a rehab vs. a remodel?? references
meet me at this house we are working on what would you do in here? what kind of money are they used to using and spending? are they showing of? a lot of open ended questions? what are you used to being paid? too many ideas is bad news over time over budget too hard to get rid of
Key Statements always say you don't need work I’m looking to line people up I have projects coming online always say you don't need work don't tell someone you need them clean cut enough well spoken
o if they check out "let’s start tomorrow"
everyone gets paid on 1099 checks doesn't 1099 anyone GET FROM MARK
ads resumes interview questions add to members site
6 | P a g e
Rehab Price Guide.docx
NOTE
only difference between 4 weeks and 8 weeks and 12 weeks is the size of the house and the extent of the work
STEP 1: DEMO (Takes 1-2 weeks or less) DEMO securing the house
o new locks o new lock set
double $15 o turn and dead bolt o single
$10 o on all doors o easy access in and out o sledge hammer
bust the lock out o new lock set
securing the utilities o switch over gas and electric
utilities company wants the HUD 1 order dumpster
o one trailer load 20 yard
rarely use $300 - $350
30 yard 20-30k budget $400
40 yd. 30k - 40k budget $450
o includes drop off and pick up o typically for 2 weeks o some companies charge $5 - 10 Dollars a day
after 7 days o (2) 40 yd. dumpsters
40k+ o what happens when the dumpsters gone
haul away
7 | P a g e
yourself order another dumpster drop it off at a trash dump
o ESTES HAULING big company local to Cleveland / Akron call today have one tomorrow put it where you need it
o Landscaping trailers if less than 20yrds take to dump
demo everything o demo kitchen
remove all cabinets, countertops, appliances, walls etc. collapse cabinets crush cabinets
o saves space o demo baths
save tub and surround if possible reglaze it
saves labor comes with warranty
$150 to replace you are saving the labor costs
o remove all old fixtures, sinks, toilets, showers, walls, etc. basic white toilet
$100 vanities and sinks
$100- $500 o demo tile in bathroom
skim and smooth or cut drywall out replace or paneling
does it add character repaint usually take tile off without demo'ing the walls
then skim and patch the walls o take out all trash
order dumpster put all trash in garage
o baseboards keep trim and paint if possible
8 | P a g e
especially in older houses adds character
o PRO - PACKS 120 ft. of baseboard for $50 minimal cost for big impact
o all doors off doors habitat for humanity will take old doors and frames casing
o PRO - PACKS $25 for 100 ft. of it save what you can
o windows will stay at beginning until order comes in measure for ordering almost always we do
o roof almost always do
o siding usually keep old siding and paint almost never do
o garage doors 50/50 save them and use
o hardwood floors anything you save move to garage or POD
LABOR o $10-$15 a hr. o cheap workers o want them to know what’s going on o some minor construction experience
Make a list of what you are keeping o tear out everything else o have stuff to keep o what do we keep o windows
wood windows we throw away save if it has a lot of character save the sashes put in new rope and weights are they new vinyl
15 years or less we keep 40 x 60 equals 100 inches
9 | P a g e
$1 an inch new windows LANG EXTERIORS
Phone numbero 773-737-4500
ship anywhere we do measuring we send to them they proof
measurements orders
number of windows cost
order fax and email can be done in one day
they order and start 2-4 weeks to ship and arrive
if they are slow 1 week manufacturing
5 to 7 business days 1 week shipping
if they are busy 2 weeks $100 buy new
buy and ship we install
$200 or less bought and installed is a steal $50 a window to install for labor
if a window seal is broke create a new one they can be saved and put back together
cheaper to order a whole new window $100 to fix $100 buy new
not include install take 30 minutes per window $50 a window
$180 new window includes install double pane double hung $200 or less bought and installed is a steal sometimes quicker to repair
o siding
10 | P a g e
keep siding paint siding
aluminum siding from 70's scrape and paint
o save $10,000 new vinyl cheaper siding
$50 a sq. ft. medium siding
$80 a sq. ft. 80% of a house is siding rule of thumb measure the exterior and subtract 20%
o roof pressure wash the dark spots of a roof if you can see a lot of buckling price per square foot
$100 in materials $75 10ft x 10ft "a square"
o 3 bundles make up a sq. o $25 per bundle o $75 for shingles
at a supply house Menard's SPECIAL
$21 a bundle $63 a sq. for shingles $25 a sq. for felt
ice guard labor
$100 a sq. ft. 20 sq. ft. roof lower to medium sized
o $2000 o labor o $2000 materials o 4-5 grand
use 3 dimensional shingles roof top delivery get it if you can
38 Edgewood roof we are saving 15 to 20 years old
11 | P a g e
no leaks that we know of easier to take some back and replace individual shingles instead of
replacing the whole roof 3954 Homestead
Ranch 30 deep x 70 wide 2100 total
o divide by 100 o 21 squares o 100 a sq. in materials
o gutters power washed and painted no dents or holes not expensive buy basic white gutters all new gutters
1500 sq. ft. ranch o $500 - $1500
2500 sq. ft. colonial o $1500 - $2k
ladders scaffolding any handyman can buy gutters cut them and install them
o doors rarely save sometimes we save wood doors b/c they have more character 2284 bailey in Cuyahoga falls we saved the doors $50 apiece interior
white 6 panel pre-hung
Menards $39 Lowe's will price match $100 - $200 a piece
o Exterior stuff to save
extra materials sinks newer put back in
o new $100 cabinets can be painted
take out and paint and put back in
12 | P a g e
wood doors sand down and paint white
vents wipe down and spray paint save vents in rentals sometimes you can save new vents $9
cut grass basic landscaping so it doesn't look vacant anymore
Step 2: TEST AND REPAIR UTILITIES (takes 1-2 weeks or less) test all utilities
o water lines plumbing
get water on and then run the lines make sure the water is working check drains
o cheap for materials o work is an pain the butt
Copper has to be perfect its solid has to be soldered with gas and flames most expensive will add some value to your house worth it in a higher end home
PVC has some bend in it plastic anyone can learn to glue like a maze less expensive
o 1/2 to 3/4 of the cost of copper PEX
bendable PVC comes in loops of piping Crimper: Tool
water line ring on it
o comes in rolls o red blue o cold hot
13 | P a g e
drain line and more expensive o 3-4 inch
supply tie offs
o tie offs 1/2 inch o 1/2 inch
drain o 1/2 inch to 4 inch
water lines are less o 1/2 inch or 3/4 o comes out of tank
hire plumber $50 an hour or less is good $60 -$75 an hour
o more expensive side o electrical
testers you buy each outlets
check all breakers tripping not working need changed out?? label each breaker in panel
o which breakers are running each room and label once all breakers are on
o make sure all outlets are hot and they work o not working
go into the wall see if outlets is bad make sure wire coming into the wall is hot check for main break in wall
rarely happens check for wires that are not connected
in room in upstairs if there’s need to demo walls or try to jump on electrical
first and plumbing outlets
electrical panel $100 comes with a few breakers breakers
o to fill the box o cheapest breakers are $4o higher amp breakers are $8
14 | P a g e
o $100 for an additional 15 breakers o on 3/4 of our houses we put new panel in
Bad Brands o Federal Pacific
labor o LABOR install panel and breakers = $150o re-wire a whole house = $2,000 - $3,000 o HIRE AN ELECTRICIAN
$30 an hour low end
$50 an hour going rate
pay for their time and materials at cost $60 -$75 an hour
o high end Bruce Electrical and Plumbing
$4000 whole house
Step 3: PATCH, SKIM, MUD, TAPE - Takes 2-8 weeks could take 2 days or 8 weeks depending on the house and extent of the work
o putting everything back togethero patch work to walls and drywall
mostly about the walls patching and fixing walls repairs and replace drywall patch nail holes in walls repair any drywall from the demo / electrical and plumbing fixes want to do drywall
especially in the kitchen really old houses with plaster walls once you start taking down cabinets and nails
o starts to fall apart o its chunky
PATCH mostly time and labor materials are cheap
SKIM mud with a fat knife watch out for texturing cracks
o fix and skim patch
o do not want to do too much paneling
15 | P a g e
paint white paint a wall color prime it white sticks to shiny paneling
o in bathrooms always keep it white
o this can be frustrating step lots of patching and mud and tape 38 Edgewood
1 week drywall DRYWALL FINISHER!!!!
$500 for whole house texturing final drywall
Step 4: PAINT: DOORS, KITCHENS, BATHS (takes 1 - 2 weeks) NOTE
o start kitchens and baths o if electrical is all done you are ready to put it back together o paint the entire house first
you don't want to get paint on floors and cabinet s hard to work around guys who are painting some contractors like to paint the entire house in 2-3 days some guys don't mind working in one room while you are working on another most painters prefer to have the run of the house and paint alone
no distractions or other people to work around o doors are re-installed and painted
contractors can paint the doors and all the trim paint trim prior to install in the garage - easier / quicker
o PAINT o LABOR
1500 sq. ft. $1500 $1 a ft. just for labor
o MATERIALS 2000-2500 sq. ft. $2500
Step 5: INSTALL Putting Back Together
o door are installed o house is painted o plumbing and electrical is done
16 | P a g e
o get windows is before paint order windows getting them in
o vents o outlet covers replaced
fix outlets o kitchen and bath install
kitchens $100 a cabinet
basic oak RTA cabinets
standard sounds cheap Ready to assemble 30 in
more expensive houses 42' cabinets all the way to the ceiling cabinets and countertops
o RUSS tops bottoms
o counter tops material laminate formica $full kitchen
4 pieces $60 each $250 for full kitchen
o premade home depot Lowes
Corian less than $50 a sq. ft. fake granite
granite $50 - $80 a ft. special $40 a foot
o backsplash then backsplash
$4 - $8 4 inch tiles
17 | P a g e
by sq. ft. $4 - $8
o medium priced o sink cut out of countertops and installed
hook up plumbing make sure it works o flooring
ceramic tile $1.5 a ft. + 12 x 12 18 x 18 1.70
LOWES stick vinyl tiles
1 - $1.20 per ft. look for discounted tiles usually not as nice looking
o appliances go in last when it’s ready to stage in week 6 stainless steel scratch and dent craigslist
o baths new tub do this along with plumbing in week 2 do drywall in bathroom after tub in week 2
$300 more labor
what s behind the tub ?? OR save the tub - usually only in OHIO
tub and tile epoxy sand it down spray application or roll on
tub and tile resurfaced surround installed
$100- $300 flooring in first so you can set vanity and toilet
o 12 inch vinyl tile o $1 each
ceramic o $1.50 a - $3.50 a tile
vanity and toilet installed vanity - $50 - $250
toilet
18 | P a g e
$90 - $250 mirror
$20 - $100
STEP 6: FLOORING AND FINAL TOUCHES flooring
o do this last b/c you are walking on it carpet appliances pressure washing gutters
o replacing gutters o can do at any time depending on weather
roof o finish
landscaping o $1,000 total
$200 on plants $100- $150 on mulch plus labor
windows o depending on how fast they are shipped
MISC week final touches
STEP 7: PROPERTY LAUNCH staging vacuum pictures MLS prepare for property launch
o prepare marketing See Module 9
o property launch o Sunday 2-4
BOOK o contractor estimate books
search on Google iBook’s
o difference between "MEANS BOOK"o price we pay versus retail price
finding contractors o price break
19 | P a g e
o nights weekends o craigslist o tons of calls
lots of junk calls o provide resume
1 out of 10 is a decent fit even the 1 is not perfect
o weeks if not months pay starts low
o JOHN / CHRIS / found at a rehab he was finishing stuff for bank
o Chris craigslist
o Jeremy friend of friend
o randy craigslist
o act ignorant and see what they tell me o what do you charge o always ask for a resume
send me marks resumes o interview questions
GET FROM MARK? o resume first
experience phone interview will you take $10 an hour?? what are they willing to take before we meet
o then honesty o references o meet me at this house we are working on
always say you don't need work I’m looking to line people up I have projects coming online don't tell someone you need them clean cut enough well spoken
o if they check out let’s start tomorrow everyone gets paid on 1099
o checks doesn't 1099 anyone
20 | P a g e
most important are they honest
o GET FROM MARK ads resumes interview questions too many ideas is bad news over time over budget too many ideas too hard to get rid of
21 | P a g e