Property Rehab: Fixer-Upper and Construction Talk

I have recently come across a few properties that have had additions and modifications made to them that were not up to code and did not have the required permits either. I have noticed that a lot more of the bank properties in my prospect area are sitting for long periods of time with these unreolved issues. In fact, many areas will require that within a specific timeframe that the issues are resolved and meet code.

Does anyone know where the money comes from on a no money down deal to complete construction and fix ups? Does it come from you the investor, the seller, or the new buyer? How does it work?

I just found another Buyer to add to my list.He lives in the Charlotte,NC. Metro where I do, He will pay Bird Dogging fee or do assignments,whichever, he doesnt care.He is a Cash Buyer.My question is what is the best way to find him deals?Since we are in the same area, what should I be doing that maybe he isnt to find the deals before he does?Any advice or could steer me in the right direction is highly appreciative.I am finally making some progress, thanks for any help.

Curtis

Protect Yourself From Shady Contractors

In any business you have honest people, and you have crooks. The real estate business has its fair share of crooks. You must learn how to protect yourself. In every sector of the real estate business you have people plotting to beat you out of your money. At times this may include the mortgage broker, the real estate attorney, the home inspector and, of course, the contractor!

When I use the word "contractor" I’m referring to general contractors, sub-contractors or any other person you hire to do work on your rehab project. This article will help you spend your money with contractors so you always maintain your leverage. I had to learn this important point the hard way.

Understand first of all that there IS a difference between price and value. Price is the amount you are asking for the property. Value is buyer perceived, and this perception of value is influenced by many factors such as location, features, condition, comparison to other purchase option, etc. By attending to details that can have a positive impact on the value, sellers can significantly increase their chance of attracting qualified buyers willing to pay the asking price.

Some tips to achieve a positive impact on value are:

1.Perceived size impacts value, even more so than actual square footage. Open floor plans make a room feel bigger than larger spaces with smaller rooms. Showing property that is furniture free, or at reduced clutter, helps to make the space feel bigger.

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
"A fresh coat of light pain on the interior walls can work wonders," says Kelly O'Ryan of Coldwell Banker in Lexington, Massachusetts. "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.
Focus on the Flooring

Does anyone have a form they are using to bid on work for contractors? I want to level the playing field. We have forms we use for commercial construction, but this will probably scare the residential guys away.

Does anyone have a solution to helping the privacy, security, and view of a nice home backed up to a business or apartments?

Thanks!

How To Prevent Yourself From Getting

Contractors are a reason that a lot of people are afraid to get into real estate investing. They hear horror stories from other investors or homeowners who got screwed by contractors and are shell shocked into believing that the only thing that is safe to do is to Wholesale or Lease Option.

To those who are afraid of the big bad contractor, beware of the investor who cries "wolf" because no matter what form of real estate investing you do, sooner or later you will need to hire a contractor.

Whether your doing full blown rehabs, subject to, agreement for deeds, buying apartment buildings, lease option or even wholesaling, you are going to need to use a contractor and you want to know a secret? They're not that hard to work with.

The return on investment of any renovation project is based on local market characteristics, the condition of the property, the real estate market when the property is sold and the quality of the work performed when rehabbed. Historically and on average, certain projects, such as the addition of a wood deck, kitchen and bathroom upgrades and window replacement, have shown the greatest ROI regardless of the property's location or the state of the residential property market.