How to learn Rehab and Design for your property

Question

I am looking into my first deals and I am struggling with understanding the rehab and design costs and actual tactics.

I understand that I do not have a background in construction and designing interiors, but surely there is a framework that I can apply to do this in a methodical way. How did you estimate costs and design your properties? Do you rely on your contractor for design? Do you hire a designer for the design?

Looking into SFH and Multi Families using the BRRRR Method.

Spence Kal · Answer

@Matthew Metros

David greens book on long distance real estate investing may be a good start, it’s available on the bigger pockets store as well as amazon.com and even libraries. It sounds like you need systems to manage people to do the work for you. Not necessarily systems to do the work, your contractors will have all those. The systems you need are what these books published by bigger pockets will provide you with in detail. Check out their bookstore https://store.biggerpockets.com

Spence Kal · Answer

Have you read J Scotts book on estimating rehab costs here https://store.biggerpockets.co...

Its totally worth the few dollars to have a resource like that. For design I really doubt any flippers use designers, unless they're in expensive markets, you can usually just look around at what the neighborhood is like and do something slightly better. What are the houses like in the areas you're looking to buy or would like to buy? What price range, finishes, what design elements make them stand out to you?

Matthew Metros · Answer

@Evan Polaski

Thank you so much! This is really helpful!

Evan Polaski · Answer

@Matthew Metros, if relationships are your strong suit, then use that to make some with local rehabbers.  You will likely find some that do not have the capital to scale as they wish, and bring construction management background to be your executive decision maker and partner in the deal.  You are sourcing deals, financing deals, and they are coming in and executing.  But more so, they have aligned interests to you, since they will share in the upside as your partner.

There are designers for every style you could want.  I would hire this out.  For example, my wife runs a design business and has been hired by several investors to do full designs for their projects.  She hands off material lists, kitchen layouts, where and how high to hang the mirror and light in a bathroom.  She does this locally only, but I am sure there are others like her all over the country for any market you are in.

Matthew Metros · Answer

@Spence Kal thank you for this! I appreciate the response.

Matthew Metros · Answer

@Spence Kal

I will not be doing the design and rehab by myself. Although, I do foresee myself educating myself on how to be knowledgeable, I know my strong suits are better spent trying to find deals, building relationships, and so on...

Do you have any resources I should start looking into now?

Spence Kal · Answer

@Matthew Metros

Construction managers usually work on large projects like commercial, they organize everything start to finish. Scheduling, manage specialized contractors like engineers architects and designers. Mostly ensuring everything is done on time and budget. They usually don’t work on small projects as they’re highly paid, but their systems certainly apply. If you’re managing your rehabs it would probably be best to have a list of go to interior designers for your projects if you don’t want to do the actual designing. General contracts don’t usually bring in designers in my experience. It sounds like you aren’t going to be doing the rehab and design yourself? so the best systems you have will be for screening contractors and designers to do the work for you

Matthew Metros · Answer

@Spence Kal

Thanks - Do they hand the design aspects as well?

Spence Kal · Answer

@Matthew Metros

Oh ok sorry I thought you were going in and doing the work yourself. Something like construction management systems then

Matthew Metros · Answer

@Spence Kal

I am trying to operationalize the rehab and design part as much as possible. I am trying to figure out the system or team that needs to be in place to make those executive decisions for me. Not trying to be lazy, but trying to be resourceful.

How to learn Rehab and Design for your property

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