Lack of practical constructi?on knowledge hindering real estate investing plans!

Rehabbing & House Flipping
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Lack of practical constructi?on knowledge hindering real estate investing plans!

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Philadelphia, PA · Member since 2012 · 6 posts · 4 votes

Investors: How can I learn basic construction?

A little bit about myself: I work in commercial real estate for the federal government, doing portfolio management (office properties). I'm also an MBA student at night at Villanova University studying real estate and finance concentrations. So... I have a strong grasp of many aspects of real estate and investing. Additionally, I own one single family rental property (3BR house in South Philly) that I kind of stumbled into.

So my long term life goal is to build wealth through real estate by pretty much any means necessary (while being highly ethical). Ideally, I would like to do rehabs and then rent them out. What my challenge is, is that I have limited practical knowledge of construction. I was working with Habitat for Humanity, which was helpful, until I got sidelined by a sports injury. I will be having surgery in a couple months, at which point, manual labor will once again be feasible.

I realize that basic construction is far from rocket science, but I did not grow up in a very handy household and I think that as a result of that, I am intimidated by carpentry, plumbing, electric, etc. I realize I can contract for all of that, and am comfortable getting multiple bids from contractors, but I am intimidated dealing with them only in the sense that I don't have enough hands on knowledge to fact check what they tell me. Also, I'm a little concerned about buying rehab worthy properties but not picking up on major issues that could blow my rehab budget.

Any ideas how to develop this skill set? I think it would be easier if I didn't have a 9-5, but then again if I didn't have a 9-5, everything else would be more challenging.

Thanks!!!!

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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y

Once upon a time reading a book and hands on experience were about the only teachers for this sort of thing. These days, you have lots of other opportunities to learn:

1) Books - still a great choice. Browse through the books at the Home Depot and pick out a fairly thick, general one and just read it. If you really want to see details, buy a code book. Those can be tough to read, but have a lot of details about how to do things. After going though that general one, but some specifically around plumbing and electrical.

2) The internet - there are many sites that discuss various projects. Any time I'm about to do something I've not done, or haven't done recently, I just start searching. Even stuff I've done multiple times I can sometimes find hints and short cuts.

3) YouTube - I'm always amazed at the amount of useful stuff on here, in addition to all the cat videos.

4) Home Depot University - At least around here Home Depot puts on short classes on various topics. They're usually free, fairly short, and on weekends and at night.

5) Volunteer for Habitat for Humanity or similar organizations - A good way to get some hands on experience and help someone in the process.

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  • Prashant P.
    Real Estate Investor · Philadelphia, PA · Member since 2010 · 283 posts · 81 votes
    13y

    One idea would be to partner with someone that has some knowledge of construction or find a good general contractor.

    0Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    Once upon a time reading a book and hands on experience were about the only teachers for this sort of thing. These days, you have lots of other opportunities to learn:

    1) Books - still a great choice. Browse through the books at the Home Depot and pick out a fairly thick, general one and just read it. If you really want to see details, buy a code book. Those can be tough to read, but have a lot of details about how to do things. After going though that general one, but some specifically around plumbing and electrical.

    2) The internet - there are many sites that discuss various projects. Any time I'm about to do something I've not done, or haven't done recently, I just start searching. Even stuff I've done multiple times I can sometimes find hints and short cuts.

    3) YouTube - I'm always amazed at the amount of useful stuff on here, in addition to all the cat videos.

    4) Home Depot University - At least around here Home Depot puts on short classes on various topics. They're usually free, fairly short, and on weekends and at night.

    5) Volunteer for Habitat for Humanity or similar organizations - A good way to get some hands on experience and help someone in the process.

    3Reply
  • Account Closed
    OP
    Philadelphia, PA · Member since 2012 · 6 posts · 4 votes
    13y

    Thanks so much for the helpful suggestions. I really appreciate it. Good avenues to explore.

    0Reply
  • Scott W.
    Real Estate Investor · chicago, IL · Member since 2012 · 1k+ posts · 231 votes
    13y

    go to your library & get the "dummies" books. home improvement for dummies...home maintenance for dummies.

    start with these and your knowledge will grow tremendously. get these books 1st - they are simply the best for a newb, trust me.

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    13y

    Jon gave some great starting places. I'd say stay with your goal.

    There are sites on the internet, google construction framing and you should find a diagram of each piece of a home. You need to know, IMO, every piece of suctural and trim elements used in home construction, from the ridge cap to the vapor barier layed under the foundation. My two reasons:

    One, selling a home and walking through someone may make a comment, besides "what's that" it could relate to a small crack in the drywall. You can then explain using the proper terms that you inspected the piers directlt below that doorway and they were on solid footings, that you checked the plub of each door jam and that the door frame was level and from that would assume the header was solid and the resulting crack was not due to any structural deficiency but could be from the expamsion and contraction of materials! Issue dropped!

    Secondly, if you get a contractor or handyguy in to do repairs and you can't expalin what you expect or tell them to double the header flush with the studs, they might assume you don't know diddly and then you're in trouble if they choose to do you in.

    I actually rehabed houses myself, I enjoyed it, building something, some guys build boats I built houses, not always as profitable as first thought, but much of it wasn't about the money, I often added too much. I kept one house for over ten years and never rented it, just played at improving it, anyway.....the practicle side of rehabs comes down to skill, not so much knowledge.

    If you don't have the skill, you'll need to practice to acquire it. I never really acquired the skill of copping by hand, I learned to hire that out if it was needed. You'll need to know your limitations or your projects will get expensive. Carftsmanship can be learned but it is also an art, some have it and others can't cut a straight line. (BTW, cutting a straight line is harder than you think! Just how straight is that cut? (LOL)

    If you can't catch on to the doing you can at least supervise those who can, to do that you'll need to study construction elements, codes and accepted practices. Lots to learn. Partner with someone who really knows thier stuff, they will probably let you help.

    Glad to hear you worked with HfH, I was on the Board of Directors of our local affiliate and pounded nails as well! That's a good opportunity to get to know building inspectors and follow them on those projects, they are usually trying to help too. Good luck

    0Reply
  • Rob K.
    Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
    13y
    Originally posted by Jon Holdman:
    3) YouTube - I'm always amazed at the amount of useful stuff on here, in addition to all the cat videos.

    I leraned everything about PEX plumbing and how to build a website on Wordpress from watching youtube videos. It is amazing how much information is there.

    While I haven't watched any cat videos, I enjoy the skateboarding mishaps and street fight videos on there. With my new smart TV, watching these videos on the big screen is enjoyable.

    0Reply
  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    13y

    I know where you're coming from -- four years ago I stumbled into this business barely able to change a light bulb. Four years later, I've rehabbed 40+ houses and can still barely change a light bulb.

    While construction knowledge is definitely helpful in this business, it's not a requirement to get started. You'll definitely have to do more due diligence on your contractors and stay more on top of things if you don't have any construction background, but after a couple projects you'll start to learn that side of the business.

    Look at it this way, Warren Buffett owns businesses ranging from insurance to food to shoes to diamonds to paint supply to jets to furniture to railroads, etc...do you think he's an expert in all those things? Of course not -- he's just good at surrounding himself with those who are...

    Podcast Guest on Show #2024
    2Reply
  • Account Closed
    OP
    Philadelphia, PA · Member since 2012 · 6 posts · 4 votes
    13y

    Well put.

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    13y

    Yes, but hiring the best for rehabs will give you a slim margin, take your time, learn, try it, get help where needed....

    0Reply
  • Steven Del Prete
    Contractor · Brick, NJ · Member since 2011 · 86 posts · 12 votes
    13y

    J Scott makes a good point. While you don't need to be able to do everything yourself, you should have any understanding of how things go together and such as some contractors will try to take advantage of you or you will miss things that need to be done. There will be things you can't see from walking through like some bad wires or rotten framing behind walls, ect. But you will need to be able to tell if your getting screwed or not.

    0Reply
  • Rich Weese
    Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    13y

    Hi Eric,
    you don't need to be a realtor to invest in real estate and you don't need to be a general contractor to understand construction. However, you will certainly feel more confident with a real estate knowledge and some knowledge of construction. This will help you to not get fleeced by those that are trying to fleece you. There are many threads and posts on bigger pockets that will address construction and I know I posted one that would take the builder from day one through completion of the home. You might want to find that and read through it also. Rich

    0Reply
  • Jeff S.
    Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    13y

    Eric Zahniser you should start off with cosmetic fixers and find a really good inspector. Follow him around. Buying it right and making it look good will go a long ways compared to getting into something you aren't ready to tackle. You know the saying, learn to...

    1Reply
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