What are some of the most important lessons you have learned after doing your first deal?
This could include you either BUYING your first investment property or BUILDING your first investment property.
Any feedback would be helpful.. thanks!
I made a BAD mistake wanting to get tile laid "cheap". The guy that I hired put me off over a month. Then he laid maybe 50sf and then walked. I then hired a professional, paid a fair price, and got it rent ready. Trying to save a few hundred cost me well over a grand. Now I only hire PROFESSIONALS that are licensed and insured. Since then, no problems! The last house I purchased that needed flooring was done timely and professionally. It was ready to show as promised-not weeks later.
Awesome advice!.. Sometimes being a penny pincher is a good thing.. sometimes it's not. I will keep this in mind over the years
So many lessons....
Perform diligence on your partners the same way you would a deal
Especially look for any previous lawsuits.
Run your own numbers
Most people in the course of your business have interests in direct conflict with your own, even your realtor.
Get multiple bids
You'll be surprised as to the huge range of bids you might get.
Get W9s before work begins
After you've paid the contractor, good luck getting them to respond to your request for a W9, especially if the relationship didn't end well.
Have solid contracts that protect your interests
Especially when it comes to recovering legal fees when you are the prevailing party.
Have a solid schedule, and keep the pressure on
The first one is likely to take way longer than anticipated. Have a handle on what the contractor is doing and when.
Don't forget notice of intended sale
Or you might just not be able to sell.
It's going to cost way more than you thought, and take way longer.
Build Murphy's Law into the budget
Many things will definitely go wrong.
When letting tenants re-new their lease, always look at craigslist for comps on pricing. I was happy with some tenants and didn't raise the rent for 3 years and never bothered to look at comps. After 3 years, I found myself $500 under market value and lost out on a lot of previous rent. After they moved out I raised the rent from $1450/month to $1950/month.
@Adam Christopher what were the specifications of the apartment.. like how many bed's and baths and such?
Originally posted by @Josef Gashaj :
Adam Christopher what were the specifications of the apartment.. like how many bed's and baths and such?
4 bed/2 bath single family home. It's a college rental about 1/2 mile from a major state university with 33,000 students.
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