Comments on: 12 Improvements That Didn’t Pay: Learn From These Rehab Mistakes http://www.biggerpockets.com/renewsblog/2009/11/29/12-improvements-that-didnt-pay-learn-rehab-mistake/ Learn, Network, Invest Sun, 12 Feb 2012 02:59:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jayhttp://www.biggerpockets.com/renewsblog/2009/11/29/12-improvements-that-didnt-pay-learn-rehab-mistake/#comment-81729 Jay Fri, 07 May 2010 21:41:31 +0000 http://www.biggerpockets.com/renewsblog/?p=9007#comment-81729 I remember once I decided to finish our first floor. I had some ideas on my mind. I figured out it would cost around $7000. Well, it costed me more, something close to $12000. In my case, the extra cost wasn't due to fancy material. The reason was I didn't consider all the details. Jay I remember once I decided to finish our first floor. I had some ideas on my mind. I figured out it would cost around $7000. Well, it costed me more, something close to $12000. In my case, the extra cost wasn’t due to fancy material. The reason was I didn’t consider all the details.
Jay

]]> By: Nicholashttp://www.biggerpockets.com/renewsblog/2009/11/29/12-improvements-that-didnt-pay-learn-rehab-mistake/#comment-77218 Nicholas Thu, 14 Jan 2010 04:18:39 +0000 http://www.biggerpockets.com/renewsblog/?p=9007#comment-77218 If you are selling the house, wouldn't these improvements increase your selling price? Why does the appraiser's opinion matter when you are pricing your house for sale? If you are selling the house, wouldn’t these improvements increase your selling price? Why does the appraiser’s opinion matter when you are pricing your house for sale?

]]> By: Dusanhttp://www.biggerpockets.com/renewsblog/2009/11/29/12-improvements-that-didnt-pay-learn-rehab-mistake/#comment-75907 Dusan Wed, 02 Dec 2009 12:38:20 +0000 http://www.biggerpockets.com/renewsblog/?p=9007#comment-75907 As an appraiser, I come across a lot of people with similar stories. None of them thought of asking an appraiser if the improvements they were considering were worth doing, considering the neighborhood the house was in. Or a real estate agent familiar with the neighborhood. I've always wondered why. As an appraiser, I come across a lot of people with similar stories. None of them thought of asking an appraiser if the improvements they were considering were worth doing, considering the neighborhood the house was in. Or a real estate agent familiar with the neighborhood. I’ve always wondered why.

]]> By: Linda C.http://www.biggerpockets.com/renewsblog/2009/11/29/12-improvements-that-didnt-pay-learn-rehab-mistake/#comment-75832 Linda C. Mon, 30 Nov 2009 21:07:09 +0000 http://www.biggerpockets.com/renewsblog/?p=9007#comment-75832 Thank you for sharing your mistakes with the rest of us. Learning from our mistakes is one of the most powerful teaching tools available. Thank you for sharing your mistakes with the rest of us. Learning from our mistakes is one of the most powerful teaching tools available.

]]> By: Justin Piercehttp://www.biggerpockets.com/renewsblog/2009/11/29/12-improvements-that-didnt-pay-learn-rehab-mistake/#comment-75823 Justin Pierce Mon, 30 Nov 2009 17:27:33 +0000 http://www.biggerpockets.com/renewsblog/?p=9007#comment-75823 Thanks Liz,No, I'm sure I'll make similar mistakes again. I just hope the next time it will be less expensive. That's the thing with this business, if you go too far in any direction it will be very costly. Underimproving can be expensive too.Thanks so much for ready and taking the time to comment.Justin Thanks Liz,

No, I’m sure I’ll make similar mistakes again. I just hope the next time it will be less expensive. That’s the thing with this business, if you go too far in any direction it will be very costly. Underimproving can be expensive too.

Thanks so much for ready and taking the time to comment.

Justin

]]> By: Justin Piercehttp://www.biggerpockets.com/renewsblog/2009/11/29/12-improvements-that-didnt-pay-learn-rehab-mistake/#comment-75822 Justin Pierce Mon, 30 Nov 2009 17:21:14 +0000 http://www.biggerpockets.com/renewsblog/?p=9007#comment-75822 Kevin,Appraisers aren't oracles. With the new appraisal rules you may get an appraiser who lives hours away. If you ask 10 appraisers you'll get 10 answers, especially since every question you ask will have 100 shades and variables. Look at the articles I've posted on my bigger pockets profile about appraisals. Even the large builders with massive research departments can't figure out appraisers. There would be nothing to this business if it were as easy as asking an appraiser. I’m not saying don’t do it. You may get some really valuable info especially if you’re new at this, but make sure you have other sources of information.Yes, I made money. I like doing that. But, I would have made more money by just selling the place without improvements. I'm not crying crock tears here but I do think there's a lesson to be learned, maybe two. I don't think you want to get in the habit of shrugging off money in this business. If you're expecting to loose money then it's time to hang it up.Thanks for reading and thanks for taking the time to comment.Justin Kevin,

Appraisers aren’t oracles. With the new appraisal rules you may get an appraiser who lives hours away. If you ask 10 appraisers you’ll get 10 answers, especially since every question you ask will have 100 shades and variables. Look at the articles I’ve posted on my bigger pockets profile about appraisals. Even the large builders with massive research departments can’t figure out appraisers. There would be nothing to this business if it were as easy as asking an appraiser. I’m not saying don’t do it. You may get some really valuable info especially if you’re new at this, but make sure you have other sources of information.

Yes, I made money. I like doing that. But, I would have made more money by just selling the place without improvements. I’m not crying crock tears here but I do think there’s a lesson to be learned, maybe two. I don’t think you want to get in the habit of shrugging off money in this business. If you’re expecting to loose money then it’s time to hang it up.

Thanks for reading and thanks for taking the time to comment.

Justin

]]> By: Liz Voss with San Antonio Real Estatehttp://www.biggerpockets.com/renewsblog/2009/11/29/12-improvements-that-didnt-pay-learn-rehab-mistake/#comment-75821 Liz Voss with San Antonio Real Estate Mon, 30 Nov 2009 16:49:49 +0000 http://www.biggerpockets.com/renewsblog/?p=9007#comment-75821 Justin, at least your still alive to talk about it. So many investors jump into something without doing their homework and don't survive. Sometimes we learn best from tough learned lessons...you probably won't be making that mistake again. Justin, at least your still alive to talk about it. So many investors jump into something without doing their homework and don’t survive. Sometimes we learn best from tough learned lessons…you probably won’t be making that mistake again.

]]> By: Kevinhttp://www.biggerpockets.com/renewsblog/2009/11/29/12-improvements-that-didnt-pay-learn-rehab-mistake/#comment-75815 Kevin Mon, 30 Nov 2009 14:54:08 +0000 http://www.biggerpockets.com/renewsblog/?p=9007#comment-75815 Why not start with the appraiser as a consultant on what will and what won't add value. As far as value for certain things alot of times these values maybe grouped under a general adjustment of quality or condition. How did all this affect the sale price and closing the deal. And most important if you made money in this market you were a major winner for the most part when most sales are a loss. Why not start with the appraiser as a consultant on what will and what won’t add value. As far as value for certain things alot of times these values maybe grouped under a general adjustment of quality or condition. How did all this affect the sale price and closing the deal. And most important if you made money in this market you were a major winner for the most part when most sales are a loss.

]]> By: Joshua Dorkinhttp://www.biggerpockets.com/renewsblog/2009/11/29/12-improvements-that-didnt-pay-learn-rehab-mistake/#comment-75812 Joshua Dorkin Mon, 30 Nov 2009 14:43:29 +0000 http://www.biggerpockets.com/renewsblog/?p=9007#comment-75812 Nice pics Justin . . . you really did a bang-up job on the rehab . . . I would have thanked you for the extra goodies, if that means anything! ;-) Nice pics Justin . . . you really did a bang-up job on the rehab . . . I would have thanked you for the extra goodies, if that means anything! ;-)

]]> By: Justin Piercehttp://www.biggerpockets.com/renewsblog/2009/11/29/12-improvements-that-didnt-pay-learn-rehab-mistake/#comment-75810 Justin Pierce Mon, 30 Nov 2009 13:36:45 +0000 http://www.biggerpockets.com/renewsblog/?p=9007#comment-75810 All,If you visit my profile to see more pics of this project they are in the photo galleries section entitled "Before and After Fairfax Project." I'll try to get some more posted. I'm really bad at keeping up on this stuff. I have a bunch of stuff I need to post on here and on my website.My profile again: http://www.biggerpockets.com/users/investinrealtorJustin All,

If you visit my profile to see more pics of this project they are in the photo galleries section entitled “Before and After Fairfax Project.” I’ll try to get some more posted. I’m really bad at keeping up on this stuff. I have a bunch of stuff I need to post on here and on my website.

My profile again: http://www.biggerpockets.com/users/investinrealtor

Justin

]]> By: Justin Piercehttp://www.biggerpockets.com/renewsblog/2009/11/29/12-improvements-that-didnt-pay-learn-rehab-mistake/#comment-75809 Justin Pierce Mon, 30 Nov 2009 13:11:32 +0000 http://www.biggerpockets.com/renewsblog/?p=9007#comment-75809 Scarlett,You can see some before and after pics on my Bigger Pockets profile http://www.biggerpockets.com/users/investinrealtor and I'll also get them up on my website.Matt,I wouldn't call this home high end. In Fairfax county its abouit midgrade. That was part of my mistake. Even though I've been in this area for almost 15 years I still sometimes let my small-town way of thinking over power me. Of course that small-town way of thinking has also saved me a few times, give and take... I guess.Thanks, everybody, for all of your comments. Thanks for reading. Happy investing.Justin Scarlett,

You can see some before and after pics on my Bigger Pockets profile http://www.biggerpockets.com/users/investinrealtor and I’ll also get them up on my website.

Matt,

I wouldn’t call this home high end. In Fairfax county its abouit midgrade. That was part of my mistake. Even though I’ve been in this area for almost 15 years I still sometimes let my small-town way of thinking over power me. Of course that small-town way of thinking has also saved me a few times, give and take… I guess.

Thanks, everybody, for all of your comments. Thanks for reading. Happy investing.

Justin

]]> By: Winston Westbrookhttp://www.biggerpockets.com/renewsblog/2009/11/29/12-improvements-that-didnt-pay-learn-rehab-mistake/#comment-75796 Winston Westbrook Sun, 29 Nov 2009 22:27:43 +0000 http://www.biggerpockets.com/renewsblog/?p=9007#comment-75796 Thanks for posting this up Justin. I am never fixing a house up ever again, lol. Well maybe just a little. Thanks for posting this up Justin. I am never fixing a house up ever again, lol. Well maybe just a little.

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