What Online Real Estate Courses Should Teach You about Handling Renovations

Handling the renovations on homes you buy and flip can be a tough job. An important lesson you can learn from online real estate courses is how to get it done

without going broke.

Some online real estate courses get you all hyped up and send you out with a final battle cry: “So, are you ready to flip?” But the best ones actually teach you how to handle what might be the toughest part – the rehab.

Buying the homes – no problem. It’s easy enough to learn how to spot the good ones. Selling the homes – too, no big deal once you learn the steps to ensure you can sell fast. In the middle lies the potential for profit or massive losses.

See, one absolute when it comes to the world of flipping is that renovations will be needed. You have to realize that getting a house for such a great price will have a catch, and that catch is that the house is going to need repairs. Sounds simple enough until you do the math and realize you could end up in the red if you’re not smart about it. Running the renovation project is harder than it looks.

Ain’t Nobody Got Time for That

Let’s take a look at your schedule. Do you have the time to oversee the renovation project? There are budgets to be figured out, scheduling how long the project will take, hiring both skilled and unskilled workers to do the work, materials to be bought, walk-throughs that are required, and then there’s the whole job of making sure the folks you hire do the work on time and on budget.

OTJ Training? No, Thanks!

Handling a renovation is not a skill you really want to learn on the job. Without any experience in the world of rehab you are more than likely going to under-budget yourself. When you run out of money, you can stop the rehab; but what exactly are you going to do with a house that is half done? Nobody wants to rent a house that’s a work in progress. Selling it again may be an option but if your attempt at renovation stopped after the walls had been ripped out and the electrical system is only partially completed you could be selling the house for less than what you originally purchased it.

Two Weeks, Two Weeks

Renovation projects also involve dealing with the various trades who each play a role in getting the house back up to snuff. What happens if they show up bright and early the first day and then the only thing that is present for days or weeks after are their tools? Do you have the gumption to pursue them and insist on them getting back to work? Don’t there are those out there who may take advantage of your naivety when it comes to the cost of laying tile, installing a new roof, or replacing windows? You might want to re-watch “The Money Pit” this weekend.

Does the mere thought of these what-ifs elevate your stress to the level of seeing red? Want to avoid the stress, stay on budget, and have a beautifully renovated home ready to be sold in a reasonable amount of time?

Then you need a Renovation Manager. It’s not hard to find one you can trust. Check out some General Contractors in your area. Ask for references. Go see the work they have already finished. Then talk with them about what you are looking for to help your future flips run smoothly.

When you find someone who has the experience in doing renovations you gain the benefits that come with experience. They have written out budgets, are knowledgeable about material cost, can negotiate prices, and know how to get everyone hired to do quality work and do that work on time.

ABOUT THE AUTHOR

Josh Cantwell of Strategic Real Estate Coach teaches online real estate courses built for the real world of property flipping. If you want to make the real BIG money, you have to get comfortable with renovating properties (or getting someone else to do it for you.) Tune in to this free podcast to discover the 6 simple steps to EVERY renovation.

http://www.strategicrealestatecoach.com/simplifying-rehab-process-real-estate-investing-made-easy-podcast/