This article is a continuation of our series on increasing your hard money rehab ROI. In the previous installment, we’ve discussed ways to strategically allocate your hard money rehab dollars to the areas that have the most impact on your sales price. Today, we will be tackling additional strategies. As a hard money lender, I’ve seen many of our experienced borrowers make their rehabs look more expensive than they actually are by getting the right materials and playing with modern design trends. Here are three best tricks of the trade to give you the bang for your rehab buck.
return on investment
The key to a successful rehab is to control your costs. That doesn’t mean, however, that you should use the cheapest materials. The trick is to think wisely and choose when to spend your rehab money and when to go with a budget option. As a hard money lender, I can testify that in our business it’s all about ROI. The goal is to create the most upscale look-and-feel for your property while keeping your costs down. Our most successful clients do so by concentrating their rehab money in strategic areas, using the right materials to get the most bang for the buck and by simply displaying good taste. Let’s unpack each of these recommendations.
As a private money lender, we work with a wide spectrum of clients: from those who are just starting out in the rehab business to borrowers with substantial experience and funds of their own. It’s self-explanatory why someone with only modest savings needs to work with a private mortgage lender. However, why would someone use them if their have enough cash of their own? The answer, my friends, is leverage. This article is a continuation of our series on hard money calculators, so if you need a refresher on the basics, please click here.