Rehab

9 Replies

I am thinking about rehabbing properties, but I not sure what would be harder : wholesaling or rehabbing . I work fill time and seems that rehabbing and keeping an eye on the contractors might be a tough job .Any advise?

Draw balance between research and action. Spend some time under the Learn tab here and listen to the podcasts...ultimately you need to invest in alignment with your interests. Persoanlly, I rehab because I enjoy the difficulty and complexity of creating something from nothing...amongst other things in alignment with rehabbing. If you invest outside of your interests and abilities, you are destined to give up or fail. 

@Raj Parwani  They are both difficult, schedule-wise, with a full time job, let there be no mistake.  I personally find rehabbing to be a little more flexible.  I can text my rehabber when issues come up.  I can visit the site before or after work.  With wholesaling it is more important to be prompt, to answer calls, to visit lots of houses.  If your job is very flexible, then wholesaling may be easier for you. 

Why limit yourself to a single strategy?  If you plan to do any kind of marketing for this property, you'll find that you get sellers of all flavors, and the solution or exit strategy can be just as varied.

Not too long about, we had six seller appointments in one day.  Because we could offer anything and were flexible, we came out with six contracts.  I did a rehab on one, wholesaled another, listed 2 traditionally and listed 2 as short sales.

We closed them all... but not the way we thought.  One of the traditional listings canceled.  But after about 8 months called back.  When we went back out there, the neighborhood had seen a boom, and we ended up putting it under contract and wholesaling that one as well.

Why did we rehab one and end up wholesaling two?  Time, money, location, many reasons.  If you don't DECIDE on an exit strategy, market for motivated sellers, then take it case by case (and it helps if you can also offer to list the property), making money becomes so much easier.

Originally posted by @Brandon Sturgill :

"If you invest outside of your interests and abilities, you are destined to give up or fail."

 Great Quote

Both are going to be ridiculously difficult for someone with a full-time job and no current real estate experience.  So, unless you're willing to dedicate pretty much all of your non-full-time work time to learning and investing, I'd recommend not bothering at this point.

I know that sounds harsh, but better to not waste your time without a realistic understanding of the challenges...

If you haven't already done so, I recommend you start with downloading and reading "The Ultimate Beginners Guide to Investing in Real Estate" found here on the BP website. Take time to educate yourself in both methods and find someone that is already successfully doing flips and wholesaling and see if you can hang out with them on your off days. Volunteer to work for them or with them in exchange for their knowledge. Once you have gotten your feet wet through on the job training you will know how best to proceed. To your success

I do both.  I can say that wholesaling would be more time consuming, if you are only going to be doing one rehab at a time.  The reason is because when wholesaling you constantly have to be looking for property and making offers and then trying to find buyers.  It never ends.  You might have to look at 100 properties before you get one under contract.  That is not an exaggeration.  I've looked at close to 200 before, before I found one.  

When you are rehabbing, you will hire a GC who will look after the crew and keep them in line.  You don't want to breath down their necks and only have to check on them periodically.  Once or twice a week is enough.      

@Raj Parwani  

Welcome. Learn everything you can. If you don't have rehab experience find someone who does. Time to build the foundation below.

Check out the Start Here page http://www.biggerpockets.com/starthere

Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 90 past ones to catch up on.

Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.

Consider checking out HUD homes for small multi's owner occupied gets first crack.

You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good luck

Paul

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