Property Rehab: Fixer-Upper and Construction Talk

As you build your Power Team you may want to have several questions that you ask each potential member. A home Inspector can provide you with peace of mind and insight to issues you may not see.

When doing a wholesale deal your Cash Buyer will do their own home inspection. However, if you are purchasing the home to do a Buy, Fix and Flip or a Buy and Hold Rental, you should invest the money in a home inspection by a qualified licensed home inspector.

There is not an exact script to interview your Home Inspectors, but here are several questions you can consider asking your Home Inspectors:

1. How long have you been in the home inspection business and how many inspections have you completed?

2. What does your inspection normally cover?

As you build your Power Team you may want to have several questions that you ask each potential member. Insurance is something you hope you never need, but you are sure glad you have it when you need it.

There is not an exact script to interview your Insurance Broker or Agents, but here are several questions you can consider asking your Insurance Agent:

1. What type of insurance coverage do you recommend to real estate investors?

2. What does this coverage normally cover?

3. What does this coverage normally exclude?

4. What are the premiums or rates for this insurance coverage?

5. How long is this rate good for?

6. Are there other policies I should consider over this one? If so, why?

7. Can you tell me about your experience as an insurance agent?

As you build your Power Team you may want to have several questions that you ask each potential member. We value having Buyers as part of our overall real estate power team. We have a few type of Buyers we will discuss. In Power Team # 9 I discussed the Buyer that want to buy, fix and resell, also called a BFF for Buy, Fix and Flip. In this posting we will discuss Cash Investors that want to purchase properties to hold as rental units. We can call these buyers our B&H for Buy and Holds or Landlord Buyers.

As you build your Power Team you may want to have several questions that you ask each potential member. We value having Buyers as part of our overall real estate team. We have a few type of Buyers we will discuss, however in this posting we will discuss Cash Investors that want to purchase Wholesale Deals.

These are Cash Investors or also stated as Cash Buyers that want to purchase deals using all cash. By cash we mean liquid cash, cash in the bank, cash in a stock brokerage account, or even cash in the Mattress! Remember a Buyer that is pre-approved by a bank to buy, is not a cash Buyer.

These wholesale buyers will want deals that might be completed using one of 3 strategies:

1. Bird Dog or Property Finder
2. Assignments
3. Double Closes

As you build your Power Team you may want to have several questions that you ask each potential member. In some states they use a Title Insurance Company to close deals while in some states they use an Attorney to close deals. Some states use both. Most of these questions would probably apply in any case.

There is not an exact script to interview your Title Insurance Companies, but here are several questions you can consider asking your Title Insurance Company:

1. What type of coverage or policies do you provide?

2. How long have you been in business at this location?

3. What days of the week and hours are you normally open?

4. Can you accomodate a closing at another location?

5. Do you have flexible hours if I need a closing scheduled early or late in the day?

Attached below is a summary directory for the Power Team Question Series #1 - # 20:

Power Team Question Series # 1: CPA - Certified Public Accountant
http://www.deangraziosi.com/real-estate-forums/property-rehab-fixer-uppe...

Power Team Question Series # 2: Property Managers
http://www.deangraziosi.com/real-estate-forums/property-rehab-fixer-uppe...

Power Team Question Series # 3: Realtors
http://www.deangraziosi.com/real-estate-forums/property-rehab-fixer-uppe...

Power Team Question Series # 4: Attorneys

As you build your Power Team you may want to have several questions that you ask each potential member. There is not an exact script to interview your Contractors, but here are several questions you can consider asking your Contractors:

1. What type of work/repairs do you normally do?

2. What type of work is your specialty?

3. What days of the week and hours are you normally available?

4. Can you provide an itemized quote for each job?

5. Do you have an hourly rate for smaller jobs?

6. Do you leave any excess materials purchased relating to my jobs or will you retain them for future jobs that I provide to you?

7. Do you require a deposit and could I pay that the day you start?

As you build your Power Team you may want to have several questions that you ask each potential member. In the case of a FSBO, you have to be a good interviewer. The better interviewer you are, the more information you will find out.

You almost want to be as good as Barbara Walters. She gets all the information while smiling but the person getting interviewed, needs a sweat towel by the time she is done with them! Therefore, you want to be your own Power Team Member when it comes to interviewing that FSBO!

There is not an exact script to interviewing a FSBO, but here are several questions you can consider asking a home owner that is selling a property - For Sale By Owner:

1. Why is the current owner selling?

2. Is the current owner motivated?

Here are a few great ideas to work on when you are rehabbing properties. Remember keep it simple to get the most bang for your buck.
Add the Perfect Touch with Paint. Paint will always clean up dirty walls and give a room a better image. Although dark colors can be stylish, go for lighter shades to brighten things up in warmer seasons. Smart color selections can make a small or cramped room appear dramatically larger. In the foyer, make a good first impression with similar tones mixed at different strengths.

Flooring

Lead-based paint is a major source of lead poisoning for children and can cause permanent damage to the brain and many other organs and causes reduced intelligence and behavioral problems. Lead can also cause abnormal fetal development in pregnant women. Consumers can be exposed to lead from paint. Also eating paint chips is one way young children can be exposed to lead poisoning. It is not the most common way that consumers, in general, are exposed to lead. Ingesting and inhaling lead dust that is created as lead-based paint chips, or peels from deteriorated surfaces can expose consumers to lead. Consumers can also generate lead dust by sanding lead-based paint or by scraping or heating lead-based paint. Consumers can have paint tested for lead.