All Forum Posts by: Eliott Elias

You do not have to be extremely specific when it comes to estimating your rehab costs during initial due diligence. I would have conversations with investors, contractors, and realtors in your area on what they are seeing rehab wise. Once you get acquainted you will have a general idea of what things cost, new AC=$8,000 Roof=$5,000 Foundation=$10,000. These numbers should be a over estimates and give you an idea if the deal is worth looking at. 

Both are important. In my experience a reliable contractor has been harder to find. You can test out agents, and it won't cost you. The only way you 100% know if the contractor is worth anything is hiring them for work, the bad ones will cost you big money. 

You're going to want to make sure zoning and HOA allows for it. If they do, make sure there is enough space on the land. There are set back requirements, drainage requirements etc... The code of ordinances is going to be your best friend

As entrepreneurs we want to be in control of everything, it is important to identify what your strengths and weaknesses are and delegate accordingly. Identify what your goals are and the daily tasks that help you reach those goals, then identify what you need to do yourself and what you need to outsource. A book I recommend is 'The Perfect Week Formula'

I would advocate for getting your license. It opens up the door to so many more income producing opportunities. Not a necessity but definitely in your favor to do so starting out. 

Take advantage of your findings to negotiate further. In regards to avoiding these issues, it's pretty up in the air. You can expect issues like this on older homes, make sure you ask specifically about plumbing, electrical, foundation, and roof before pursuing a property. If it's not in the sellers disclosure and not to the agents knowledge then it's rolling dice 

Proceed with caution. The real estate industry is 24/7 and you have to really be on the top of your game. I work full time as well and part time as an agent. The tough question I had to ask myself is how am I going to stay ahead considering all these agents are putting in work 14 hours a day when I can't? It's possible, just set realistic expectations.

Door knocking, building relationships with Realtors, brokers. Flippers are making numbers work, even with this inflated market. 

 The real value in the book on estimating rehab costs is understanding the bones and components that go into buying property. It gives insight on what you should be looking for as an investor that can make or break the deal. 

Throw yourself in the fire, make offers, get them accepted, get them rejected, put pressure on yourself to be forced to learn. Build relationships with realtors, brokers, lenders local RE investors and be a sponge.