controlling rehab costs

Five Steps in Creating a Renovation Scope of Work That Rocks

April 25, 2022 by Kyle Sennott Leave a Comment

A solid scope of work is a foundation of any successful fix-and-flip. It helps you accurately estimate your rehab budget. It anchors your relationship with your contractor by detailing the work to be completed and the payment schedule. If you are using a private lender and your loan is based on the after-repair value of the property, it provides the necessary information for the appraiser to appraise the property. Finally, it lays out the groundwork for the draw schedule – a document that outlines what needs to be accomplished for your private lender to release the construction funds.

How to Succeed with Hard Money Loans

July 6, 2020 by Kyle Sennott Leave a Comment

Hard money loans are specifically designed to meet the needs of real estate investors looking to purchase and rehab properties. Working with a hard money lender offers a viable alternative to paying for acquisition and renovations with your own cash – something that few potential investors can afford. Private money lending democratizes real estate investing, but to succeed with hard money you need to follow several fundamental principles. Here are seven best practices for maximizing your profits and building long-term wealth with hard money loans.

Managing Contractors: Four Principles for Success

May 4, 2020 by Kyle Sennott Leave a Comment

To be in real estate investing business, you need to have at least two major skills. First, you need to be a hustler. That means to be able to identify promising fix-and-flip opportunities and put them under contract at the right price. The second, and equally important skill, is being a project manager and having the tenacity to ensure that renovations are completed on time and within the budget. The key to this part is to know how to manage contractors so they meet your expectations. Managing contractors in a way that maximizes your profits and builds long-term relationships with good crews is our focus today.

Working With Rehab Contractors: What NOT to Do

May 18, 2017 by Kyle Sennott Leave a Comment

In the real estate rehab business you make your money when you buy. However, as a hard money lender, I cannot emphasize enough the importance of a well-planned and efficient renovation process. Your general contractor and crew can make you additional money or, at minimum, save you time and hassle. Alternatively, they can drain your profits and make your life a living hell. So how do you avoid being driven nuts managing them? For starters, try to avoid these six costly mistakes:

Time to Get Your Mind Right for Investing! (Part 1)

January 26, 2017 by Kyle Sennott Leave a Comment

Okay folks, it’s time for a checkup from the neck up as we begin a new year on the path to your DC real estate investment dreams. I am especially talking to you fix and flippers out there because this could be a great year for you. You have to get in the game if you want to score though. If you want to score big, then remember these five things that are going to be at the core of your DC real estate investment strategy.

The Four Pillars of Rehab Project Costs

October 18, 2016 by Kyle Sennott Leave a Comment

When buying an investment property using a hard money loan, you can’t simply think about the worth of the home. You have to consider other factors that can drive up the total project cost and make or break your investment. Here are the four pillars of the cost of a rehab project.

controlling rehab costs

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