Are You a Rehabber?

Here's a test to see if you've got what it takes to be a rehabber. Just be honest and rest assured nobody's going to rap you over the knuckles for your answers! - Are you a problem solver? - Do you relish a project...I mean one that can occupy your attention for more than a few days? - Do you understand that sometime you've got to make a mess in order to make things right? - Can you see value in things that may not be pretty now, but could be made so? - Do you know your own limitations and know how to pass on a little too much rehab? - Do you enjoy fixing things? - Can you negotiate and work with contractors? - Can you get used to making your money in tens-of-thousands instead of hundreds at a time? - If your general philosophy one of seeking ease, or are you a go-getter? Okay, that's enough. Here's some food for thought on these topics. - Are you a problem solver? Rehabbers are LOOKING for problems to solve. Now, not all problems have to be massive. Sometimes all a house needs is paint and carpet, but unless you do this routinely, and have the money and time to do it, it seems like a daunting task for most Americans. Not to a rehabber. The trick is spotting the problems we want to solve, which really isn't all that hard. - Do you relish a project...I mean one that can occupy your attention for more than a few days? Even if you hire a contractor for a turn-key rehab, you need to stay engaged in the project. Your contractor needs to know you are minding the clock and intend to hold him to his word and price. Nobody's more interested in your project than you...spread the wealth...make sure everyone involved knows how interested you are and it tends to make THEM interested. A rehabber doggedly stays with the project because he knows time is money! If you are the impatient type there are other types of real estate investment for you, like buying houses that are already rehabbed, or wholesaling. - Do you understand that sometime you've got to make a mess in order to make things right? A rehabber is okay with tearing up a wall to get at some bad plumbing, or rewiring a house because he's got the big picture in mind. He know somebody's going to live in his project eventually and knows when to make a mess, and when to patch and cover. - Can you see value in things that may not be pretty now, but could be made so? A rehabber can walk into a mess and see the diamond in the rough. A rehabber profits on most people's reaction of revulsion to an ugly property. A rehabber sees a beat up property and his mental calculator starts working "That's $250 for a dumpster, new HVAC ($2500), paint inside and out ($3000)..." A rehabber can get to a total (slowly or quickly with experience) that he or she thinks the rehab will cost instead of most people who will just let their emotions scare them out of big bucks. A rehabber knows where he or she is "safe" in a property. - Do you know your own limitations and know how to pass on a little too much rehab? A rehabber knows when to be Macho Man and when to be Chicken Little. A rehabber passes on HUGE RED FLAGS like cracked foundations and sagging roof lines...that is unless they know exactly how to fix them and what it'll cost. If they know that, it makes these houses huge opportunities. - Do you enjoy fixing things? Big cost items involved with a rehab like a new roof, plumbing or wiring don't bother a rehabber. A rehabber would have spotted these requirements and factored them in. Those items only scare away the weak of heart and give the rehabber a better deal! - Can you negotiate and work with contractors? A rehabber knows when he's being played for more money. The rehabbers learns quickly what it costs to get things done and is not afraid to make someone justify a price. If you are new to rehabbing you are probably paying more than someone who's been doing this awhile. That's okay. You are still making money! Keep talking to fellow rehabbers and you will learn as you go. Don't let a lack of knowledge in this area prevent you from making some great money. - Can you get used to making your money in tens-of-thousands instead of hundreds at a time? A rehabber isn't content to work for 40 hours for a few hundred dollars. The rehabber is okay waiting for a few weeks or months for a bigger payday. Rehabbing is a business. Just like any other business, money flow in and out. There will be time where your working account will be a little flat, and other times it's fat! Before you go on a spending spree in a fat time, look ahead at your projects and figure out what your outflow will be over the short term. A rehabber has to plan! - Is your general philosophy one of seeking ease, or are you a go-getter? Rehabbers usually aren't very laid-back people. They are Alpha personalities, not content to sit around waiting for things to happen. They are the ones making it happen. If you are reading this and are interested in rehabbing, you've taken the first step by educating yourself. Sometimes it's actually WISE to not jump in with both feet. I feel strongly in this fact: KNOWLEDGE ALWAY PRECEEDS THE MONEY! But, don't wait around for too much knowledge. Rehabbing IS one of those things that take knowledge of the basics to get started. BUT, for SOOOO many aspects of this work, it takes experience. It takes experience you can't get on the couch or in front of a computer. So, stick around and read about the basics then GET STARTED!