Book Synopsis
The goal of a rehab business or any business is to make a profit. Understanding all the costs associated with rehabbing a home is essential. Select a real estate agent or agents that you can trust and that know the market in your area. Pick homes that will allow you to meet your profit goals. Do not undertake projects that are beyond your skills or financial capabilities.
Determine your anticipated direct rehab costs and associated costs. Once you have determined the projected selling price of the home, once it had been rehabbed, and all direct and associated rehab cost you can determine the maximum price you should pay for your rehab property to achieve your profit goal.
Have the property inspected by a professional home inspector prior to any purchase. Address all major issues. Consult a lawyer before signing any contracts. Start your rehab work once you have purchased the property. Complete all work in a timely manner. The longer your project takes, the lower are the profit expectations.
Decide if you want to list your property for sale at the start of the project or when the project has been completed. Accept offers that are in line with your profit goals. Have your lawyer review all sales contracts prior to signing. When a closing date is set, organize all your files and come prepared. Check with your real estate agent and lawyer to be sure you have everything needed for closing.