Fixing Up Properties

When you’re fixing a house you can lose $10,000.  It just happens you figure out each expense and you budget for everything to cost $20,000 and when you get done it cost $30,000 - oops.  Just be ready for it, there is nothing you can do about it other than have the cash handy.

It really helps to have a network of workers that are good at doing the different types of repairs you are going to need.

For example:

• Carpet


• Roofing


• Cleaning


• Tile


• Painting


• Replacing windows


• Plumbing


• Carpentry


• General handyman

Some people are better than others but no one is good at everything.  To start just try and get a low bidder then if they do a good job keep their number for the next job, if not then start looking for someone new again.  Eventually you will end up with a list of dependable people who can get the work done for a reasonable price.

Paint, carpet, and cleaning are the biggest returns on your money.  Many times you can find a house at a good discount that just needs these 3 things. With some good workers it is easy to paint in 2 or 3 days and carpet in 1 day, then a day for cleaning and you can have the property back up on the market.

If you start replacing foundations and roofs then you can be looking at months and a lot of money.  My best deals have been when I worked 2 or 3 days and made $30,000.  That’s $10,000 per day. When I start working 3, 4, 5 months a few times I have made $50,000 but by the day that’s only about $300 per day, which is no where near $10,000.