I made a Ton of Money Flipping House’s – Oh Yeah?

” Gold I tell you there’s Gold in them thar Hills!” Yes there is excitement in the air and much like the days of the Hollywood westerns a call to action. Gold? Well, maybe and maybe not. Certainly there is a profit to be made for the well prepared Real Estate Fixer Buyer. Is this You? Or will you just be one of the countless stories of failure.

Real estate investments in Fixer’s Flips and Rehabs be it Short Sales and or Foreclosures or in the Derelict/Abandoned homes  market can be very lucrative, If you know what you are doing.

It is that IF that separates the Men from the Boys so to speak. Even with the most experienced of us all there are mistakes made and money lost. But there are many things you can do to help eliminate those losses are at least lessen there effects on your bottom line.

Taking a seminar and listening to the rags to riches stories is one of the sure fire ways to quickly lose your shirt. They may be very motivating and fun to listen to but they are no recipe for success. While education is all good and well you can be over educated as well.

One simple plan that can set you on the right path is to look at investing in Real Estate as a Team Sport. Who would you pick to be on your team, assuming that you have done all of the preliminary work such as financing etc.

The Workers :

1. You ( will or can you do the work)
2. Contractor ( Save your self some headache early on a hire a Licensed Contractor for those jobs that you yourself are not capable of doing )
3. Special Contractors ( Roofer, Electrician, Plumber, HVAC, etc.) You do not have to have these people on the pay roll or at your beck and call but you should at least have done the leg work to check out the quality of work they can do and to compare their prices.
4. Real Estate Agent. ( Did you know that a good real estate agent can make you or break you in the Fixer and Flips market?)

Choosing the right Contractors and Real Estate Agent have many parallels. Your entire team should understand your goals. No member of the team including you should put their needs ahead of the others. A good team understands their place and the places of the other members.

So you have assembled your team and you’re ready to go! What then is a 365 Real Estate Investor? Given that there are only 365 days ( more or less ) in a year a budget needs to be set to meet your goals.

• How much money do you want to make per year after all expenses are paid?
• How much profit is there per project?
• How many projects will it take to reach my goal?

Experience is of course the best teacher. Start small and do not get carried away on that first project. Take on one that even if you fail will not take you down don’t let Greed get in front of the learning curve or your common sense. Build upon your successes for they are the foundation for a bright and profitable future in the world of Fixers and Flips.

Search  Portland Oregon Homes For Sale Right Here

Let Your Next Home find You !   Portland Oregon Info

” A Real Estate Transaction with Herb is one YOU will Profit from “

Why Buy a Portland Oregon Home Now

As much as we would all love to believe in the ability to read the future I suspect that most of us do not have that uncanny ability. If we did then there would be no point in the lottery. So how is it that we make our present decisions for future purchases. Often times it is based on the Media, friends, family, gut feelings and the almighty did it on a whim.

When it comes to major purchases like automobiles and homes, the process most often takes into consideration ones ability to make the payments. Certainly when it comes to buying a new car the emotion of getting into something new plays a big role. Most of us need transportation but we also would like something for our ego’s. Perception is often reality. What are others perception of you should you be driving that old clunker or the new shiny sports model that is all the rave.

Home purchasing is another matter all together. Media certainly plays a big emotional part as well as the ability to make the payment. Ego as well comes into play as we all would want to show others how successful we are. I own a House vs I Rent. So when is it the right time to buy?

Should you buy in a Buyer’s market ( as many people say it is now ) or in a Seller’s market ( as we clearly have been in over the last several years )? I submit to you that the right time to buy a home is NOW. If you are capable of financing you should be owning. Look at real estate from a historical perspective. Do real estate prices go up and down? Yes they do in some areas of the country. It is often a product of wild price escalations in a short period of time. Something akin to 25% or more increase per year. This kind of price increase has no hope of being sustained.

Price ranges in Portland Oregon have had a steady increase of somewhere between 6 % to 9 %. This has been since statistical information on the Portland Oregon Housing Market has been kept. When looking at a snapshot in time the steady increase of property values in Portland have remained constant. Given the fact that prices continue there slow methodical rise, waiting to purchase a home only erodes your buying power.

A home selling for $200,000 today with a 9% a year increase could be worth $218,000 at the end of the year. Is your income increasing at that rate? If not then you will have to buy a lesser home. A few years ago many 2 bedroom homes in Portland could be purchased for less than $150,000. Try to find a listing for one now.

Let_Your_Next_Home_in_Portland_Or._Find_You

Why is This the Time to Buy Real Estate

Yesterday I posted an article about the real estate market in Portland Oregon . I expressed my oppinion that it was A_Good_Time_TO_Buy_Real_Estate . A reader challenges that oppinion with a resounding ” are you kidding me ” referrencing an article of the rise in foreclosure rates in Portland and around the country.

It is a good question and one that deserves a good answer. Throughout the entire history of mankind, there has never been a moment where man has bitten off more than he could chew. In todays fast paced society and an eagerness of most everyone to have instant gratification to there life styles, prudent purchases are often over looked. It is quite easy to get caught up in the ” everyone is doing it ” menatlity. That does not mean that it shows fiscal responsibility.

In short there is nothing that can be done to those who have walked to the end of the plank only to see it sawed off behind them.

The percentage of those that have done so is a substantial amount. However the larger percentage of consumers have not and there should be no reason at all for anyone who wants to purchase a home to delay that purchase. Interest rates are still very low, Tammy_Wittren_of_Northwest_Mortgage  a mortgage Broker/Banker specializes in loans taylor made to the Portland Market would be happy to update you with the current rates.

The reasons to purchase now and why this is a great time to buy are for the following reasons :

• The past two years real estate across most of the country has been depressed and in some cases a major decline.
• Real Estate is now begining to show a comeback and a rise in prices in many locations
• For those Sellers who have had there home on the market for a while without an offer , they may be willing to look at strong buyer more than there asking price.
• With the market improving real estate sales prices will soon begin to go up.
• Seeings how the real estate market in Portland has not been affected as the rest of the country, the rise in prices here will most likely be more severe than other parts of the nation.

So just like the stock market the time to buy is when it is at its lowest or close to its lowest. Not after it has already made the turn and you have missed out. For those that have been in the real estate market in the Portland Oregon area for any time can testify to. Once the market begins that upward surge it can make leaps and bounds in the tens of thousands very quickly. Unlike reductions that are done in smaller amounts and reluctanly by sellers.

Is this the right time to buy? The answer is a resounding YES! For as you have seen in my previous post the last 12 months ending in April showed an appreciation rate above 11% in Portland. Using that number only and not any additional percentage that might happen should the market take off again, 11% a year on a $300,000 home is $33,000. Or $16,500 for 6 months or $8,250 for 3 months. So every 90 days you wait you are in effect losing $8,250 worth of buying power.

Let_Your_Next_Home_Find_You  

How is Your Real Estate Market Portland Oregon Remains Strong

For the last two years many of my friends in the real estate business did not have much to shout about. Prices were down and inventory was up. For many of my colleagues life was pretty bleak. Recently however signs of improvement have begun to show up in these long depressed markets. A strong Real Estate Market is not only good for agents it is good for the country.

One of the major index’s to this country’s economy is the housing industry. A healthy Real Estate industry points to a healthy economy and consumer confidence. People who feel secure tend to “put down roots” with the purchase of a home. 

Portland Oregon for the past two years has remained virtually unscathed feeling little of the effects of the rest of the country. Although not totally oblivious of the rest of the country’s real estate woes , for the most part our market has continued to grow with only a small curtailment.

The_Portland_Oregon_Metro_Real_Estate_Market_Report_for_April.  shows a dampened trend. Yet the market still is a good market and well priced homes are selling relatively fast with and average market time of 44 to 46 days for many areas. It would be hard to define this as a Buyer’s market yet there are many good buys for the discerning eye. As the market improves in the rest of the country the trend is that Portland Oregon will follow its lead. This may be the perfect time for the first time home buyer or investor in Portland to make their move.

Portland_Or_Real_Estate_Broker_Web_Site  

How Can IPA Cure the Expired Listing Blues

In the beginning the courtship was short but Sweet. Each and every question was answered  swift and confidently. After a while I stopped looking for excuses or flaws. In fact I could not wait for the punch line.

I was almost to the point of begging ” Please List MY House ” ! Then finally the sweet bliss of the signing of the forms. The firm handshake and that wonderful eye contact that was made at the conclusion.

The memory lingers like the fragrance of wild Honey on a Summers day even though it had been well past 6 months since that first night. What a wonderful night that had been. The anticipation of  first time buyers  viewing my home, a quick sale, the feedback and followup that had been promised.

I suppose it made some sense, that of no activity would make feedback difficult if not outright impossible. Yet as the days began to turn in to weeks I found that more often than not it was I who had to initiate the conversation. I thought it was a Seller’s Market, but then I hear it’s a Buyer’s Market. I don’t know for sure I just want to sell my home.

Indeed as weeks turned to months I could sense the reluctance to take my call. The hurried conversation. I tried to keep up beat sometimes closing my eyes to recapture those early moments of our conversation on the night I signed the Listing Contract.

Is this YOU? Has your listing expired ( gone full term without a sale )? Feeling neglected? Unsure of what to do or who to turn to next in your quest to sell your home in Portland Oregon? How was it you found your agent to begin with? Who should you choose now?

Google me. Just log on to Google and type in Herb Hamilton Broker.

Then Call Herb and Start Packing ! As a Broker with RE/MAX Preferred Inc. Realtors I can show you what went wrong and where to go. I have over 19 years of experience Selling Homes.  Most of which have been right here in the Portland Metropolitan area.

Herb Hamilton is a Real Estate Broker with RE/MAX Preferred Inc. Realtors working in Portland Oregon

                  Home Buyers and Investors Buy A Home or Buy an Investment in Portland Oregon !

                              ” A Real Estate Transaction with Herb is one YOU will Profit from “

http://www.portlandrealproperty.com/ or http://www.hotpdxhome.com/  A Web Site for the consumer full of Local Content as well as Portland Oregon real estate mls Home searches . You’ll also find Portland area school information as well. New Content and Photo’s are constantly being added.

http://www.househuntportland.com/  A Web Site for the home buyer of Portland Oregon Real Estate. Receive updated real estate listings daily or hourly 24/7. Sent by email on a street map with a Photo a Description and an Address.

http://www.portlandflips.com/ An Investors Web Site. Spend your time analyzing the results that will be sped your way within minutes of becoming active in the local RMLS.If your an Investor and You Want Portland Oregon Real Estate Investment Properties then this is your site.

http://www.portlandrealproperty.com/rosecityblog  My Portland Real Property web site Blog. Full of articles reflecting real estate issues, event and more in Portland Oregon and beyond.

http://www.portlandonline.com/ City of Portland On-line. From Parks to Jobs find out about our beautiful City of Roses on Portland Oregon’s Web Site.

Portland_Maps Enter a Portland Oregon address and get a ton of information on the home including maps zoning Sewer etc. Aerial maps included.

Portland_Or._Mt._Tabor_Neighborhood  One of Portland Oregon’s Premier Tree Lined Street Neighborhoods built Around the extinct Mt. Tabor Volcano.

Portland_Or._Laurelhurst_Neighborhood  Crown Jewel of Portland’s eastside, Laurelhurst Park and Neighborhood lies between Mt. Tabor and the Willamette River.

http://www.rebuildingcenter.org/ Link to Portland Oregon’s Nonprofit center for used building materials. If you need parts for that old house come to the Rebuilding center in North Portland’s Mississippi District.

http://www.rejuvenation.com/ Rejuvenation is Portland Oregon’s unique Period Authentic home for full reproduction fixtures and Architectural trim. Salvaged building materials are found here as well.

http://www.hippohardware.com/ Hippo Hardware is another very unique Store located in inner SE Portland Oregon with every kind of conceivable part for you old home. Truly an interesting experience.

http://www.ccb.state.or.us/ State of Oregon’s Contractors and Construction Board. Find out what new laws effect the construction industry. Check on Contractors Licenses and History.

http://www.oregon.gov/REA/index.shtml State of Oregon’s Real Estate Agency.

Oregon’s_Real_Estate_Agency_Pamphlet Learn about Agency . What are a Buyer’s Agent’s responsibilities, what are a Sellers Agent’s Responsibilities. Dual Agency.

Portland Oregon Real Estate Market is Exploding Again!

Over the past few weeks I have been working with a few Buyer’s needing to purchase before the end of May. These Buyers came to me through my House Hunters web site House_Hunt_Portland  a web site specifically designed for Buyers to find a home using there own search criteria.  

For the very Proactive Buyer you can request the results to be sent to you within in 20 minutes. What this means is if a real estate agent lists a home for sale and enters it into the MLS , you will receive it within 20 minutes providing the listing matches your search criteria.  Results sent to you will be on a street map showing the location of the home in the neighborhood . Results will include Photos of the property, a description, and the homes address so that you can drive by first before calling Herb.

Many of the Buyer’s………… UPDATE ! Durying the writing of this article I recieved a Phone call from one of the buyers that I have been working with. This buyer is of course signed up on  House Hunt Portland. They are also on the 20 minute notification plan.

We had been out looking at property today from yesterdays searches. I told them that I would recommend that they have me change the search frequency from daily to every 20 minutes. After all we had seen three homes today that they were interested in but all three had more than  two offers on them already in only a 24 hr period.

So like I said while I was writing this ( I began 2 days ago ) they called and said that House Hunt had just emailed them a new listing. The Photo’s looked great and was in an area they were really interested in. It was 7:00 pm when the call came in. Fortunately the Seller was not at home. By 8:30 pm we had seen the home and had written an offer on my Lap Top and Printed and scanned it back in after signatures. I noticed that the Listing agent had received and read the offer that I emailed him just shortly before 10:00 pm.

The following morning the Listing agent called me to congratulate us on having the offer accpeted by the Seller. He also wanted to commend me for our quick work. He did not expect anyone to have seen the listing til the next day. In fact he had schedueled a showing of the property the following day. Thanks to House Hunt Portland my clients have beaten every one to the draw, even the Listing agent.

Herb Hamilton is a Real Estate Broker with RE/MAX Preferred Inc. Realtors working in Portland Oregon

                  Home Buyers and Investors Buy A Home or Buy an Investment in Portland Oregon !

                              ” A Real Estate Transaction with Herb is one YOU will Profit from “

http://www.portlandrealproperty.com/ or http://www.hotpdxhome.com/  A Web Site for the consumer full of Local Content as well as Portland Oregon real estate mls Home searches . You’ll also find Portland area school information as well. New Content and Photo’s are constantly being added.

http://www.househuntportland.com/  A Web Site for the home buyer of Portland Oregon Real Estate. Receive updated real estate listings daily or hourly 24/7. Sent by email on a street map with a Photo a Description and an Address.

http://www.portlandflips.com/ An Investors Web Site. Spend your time analyzing the results that will be sped your way within minutes of becoming active in the local RMLS.If your an Investor and You Want Portland Oregon Real Estate Investment Properties then this is your site.

http://www.portlandonline.com/ City of Portland On-line. From Parks to Jobs find out about our beautiful City of Roses on Portland Oregon’s Web Site.

Portland_Maps Enter a Portland Oregon address and get a ton of information on the home including maps zoning Sewer etc. Aerial maps included.

Portland_Or._Mt._Tabor_Neighborhood  One of Portland Oregon’s Premier Tree Lined Street Neighborhoods built Around the extinct Mt. Tabor Volcano.

Portland_Or._Laurelhurst_Neighborhood  Crown Jewel of Portland’s eastside, Laurelhurst Park and Neighborhood lies between Mt. Tabor and the Willamette River.

http://www.rebuildingcenter.org/ Link to Portland Oregon’s Nonprofit center for used building materials. If you need parts for that old house come to the Rebuilding center in North Portland’s Mississippi District.

http://www.rejuvenation.com/ Rejuvenation is Portland Oregon’s unique Period Authentic home for full reproduction fixtures and Architectural trim. Salvaged building materials are found here as well.

http://www.hippohardware.com/ Hippo Hardware is another very unique Store located in inner SE Portland Oregon with every kind of conceivable part for you old home. Truly an interesting experience.

http://www.ccb.state.or.us/ State of Oregon’s Contractors and Construction Board. Find out what new laws effect the construction industry. Check on Contractors Licenses and History.

http://www.oregon.gov/REA/index.shtml State of Oregon’s Real Estate Agency.

Oregon’s_Real_Estate_Agency_Pamphlet Learn about Agency . What are a Buyer’s Agent’s responsibilities, what are a Sellers Agent’s Responsibilities. Dual Agency.

Hot Fixer Market in Portland are You Ready

A little less than a month ago I was sitting in front of an Investor who had called me about putting his Rental Property on the Market. I had done all my homework and felt that the property a 1907 Fixer located in the Alberta Arts District of Portland Oregon should sell fairly quickly at the listed price of $259,000.

The prior three weeks leading up to this point in time had been spent in research for value. The property is somewhat nonconforming in a good way. Providing comps was the tough part. The Seller was to give notice to the tenants so that we could begin with a vacant property.

The key to selling Fixers is accessibility for Buyers. They frequently have very tight schedules and will like to see on the spur of the moment.

So as I sat there in front of the Seller I was totally surprised by the fact that no one in the last three weeks had begun the process of giving notice to the tenants. On top of it the Seller was now leaving to go out of town and would be gone for four or five days.

Setbacks like this are an inconvenience, and unfortunately just part of the business. I began the marketing by putting into the MLS and an add on Craig’s list. Within a few hours the phone began to ring from prospective buyers and real estate agents.

I set up the first showings for eight days later. It was all complicated as the tenants did not speak English and I was left to wait until the Seller returned home.

The first showings did not go all that well. I arrived about 15 minutes early to discover the tenants who were supposedly going to open the doors, were not at home. A quick call to the Seller and the twenty some buyers and agents were all left to wait as the Seller made his way to the property from a small community near by.

When he arrived finally he discovered that the tenants had changed the lock and he was not able to provide access. Disappointed several of the buyers and agents began to leave when the tenant showed up and gave access.

A rocky start to say the least. As the buyers began to filter through I had that one on one heart to heart talk with the seller about access. He quickly said that he would produce a set of keys for me as I had previously asked for admitting that he had thought that it would not be necessary even though I had previously warned him.

The first round produced nothing. Over the next few days I began to field calls and set another showing appointment for 4 days later. This time armed with the keys the showings went off without a hitch.

Some two hours later the call came in from a Buyers agent and her client. They had written an offer of approximately $20,000 shy of full price. I gathered up the paper work and made my way towards the office. I had just barely left her side when the phone rang again. It was another Buyers agent and there Buyer had written a full price offer. All cash to close in 15 days after inspections.

Feeling much better now and armed with two offers I made my way towards the office. Once again the phone began to ring. It was Chris one of my long term clients who I had told about the property right after I had listed it. Chris had been busy but wondered if I could meet him at the property within the hour to show him. I told him that I had 2 offers in hand all ready. He said that he still wanted to see the house. I called my sellers and they said that they would not be available until the following morning.

Chris loved the property and after walking outside asked how much it was listed for. I told him the listing price was $259,000. You have 2 offers in hand already he asked. Yes I do.

I will offer $269,000 cash a 10 day closing no inspections no contingencies. Fine I said and began the paperwork. The following morning the Sellers reviewed all of the offers and quickly accepted Chris’s offer.

The Property Closed 3 days ago. I asked Chris what compelled him to write an offer $10,000 above full price. He said that he new there were other offers and that in five years he probably would not remember the difference between $259,000 and $269,000. But he would instantly be angry if he lost a great property over a lousy $10,000 bucks.

When the Fixer Market Heats Up Will You be Ready ?

Herb Hamilton is a Real Estate Broker with RE/MAX Preferred Inc. Realtors working in Portland Oregon

                               ” A Real Estate Transaction with Herb is one YOU will Profit from “

http://www.hot-portland-oregon-real-estate.com/ or http://www.hotpdxhome.com/  A Web Site full of local Portland Oregon information and real estate searches for homes.

http://www.househuntportland.com/  A Web Site for the home buyer. Receive updated real estate listings daily or hourly 24/7. Sent by email on a street map with a Photo a Description and an Address.

http://www.portlandflips.com/ An Investors Web Site. Spend your time analyzing the results that will be sped your way within minutes of becoming active in the local RMLS.

Fixer Buyers and the Rookies Mistake

One of the hardest things to convey to the rookie fixer buyer is that the Seller is not stupid. Assuming the Seller and or the Agent is Stupid is one of the most common rookie mistakes there is.

Here is what I mean. I will use an example of a property I currently have on the market. The Seller called me knowing that I specialize in selling Fixers and Flips. He knew that his property needed a great deal of repair and could be easily classified as a Fixer property. The property that he owns was in poor condition when he bought it. The price was so right that in this up and coming neighborhood he new that all he had to do is just hang in there for a few years.

Those few years have passed and it is time to cash in on his investment. Not wanting to jump to quickly and leave money on the table, he asked that I do an analysis of the property. A quick walk through was all I needed to give him what he needed to know.

There would not be much to gain by doing a modest fix up if anything. He was not interested in spending the type of money that a full blown rehab would cost. The Decision to sell as a fixer was made and the price was set. A sales Price of about $250,000 was chosen allowing the Seller to maximize his position and yet allowthe full blown rehabber an opportunity to make some money as well.

The Property was put on the market and appointments were made. Several Rehabbers went through and strong interest was shown by three parties. Two well seasoned professionals and a pair of Rookie Buyers.

The Seasoned professionals asked if there had been any offers submitted. Having none at the time they excused themselves to meet with there individual Agents. After a short conversation both agents approached and let me know that they would be writing offers later that evening.

The Rookie Buyers  after doing an abreviated walk through of the property, and not really spending any time looking at the positive aspects or the property made a rush to judgement. Before you know it out of their mouths came the words ” Wow this place needs at least a $100,000 of work, is the seller willing to negotiate on their price?”

Having over 18 years of expierience in working with Fixer Buyers and having done several Fixers myself, it never ceases to amaze me what will come out of peoples mouths. The only thing that this accomplishes is that it notifies me how little you know. Yes I had done the analysis and I know that if I was doing the project the price tag would be close to $40,000. I also know that most Rehabbers would budget $60,000 to $65,000 . A  $100,000 estimate on this project is just a typical Rookie mistake and will not gain you favor or credibility.

None the less later that evening I recieved 3 offers. First from one of the Seasoned pros. for a little above full price, the second from the other Seasoned Pro at substantially above full price. The Rookies offer was more than $50,000 below full price.

If you truly want to work on Fixers, then align your self with a professional and learn the ropes. The Seasoned Pros are making money and you can to if you learn to stop making Rookie mistakes.

“Fixers, Flips, and Rehabs” Part 3a Doing the Project the Begining

In last weeks post we covered Finding the Right Project https://portlandflips.wordpress.com/2007/02/19/fixers-flips-and-rehabs-part-2-finding-the-right-project/ . This week we will cover the beginning steps necessary in Doing the Project.

Over the years I have personaly worked on many Projects of my own. I have also worked with a great number of rehabbers as a consultant to thier projects like Gary’s 1950’s_RANCH located in the Fabulous OVERLOOK  neighborhood of Portland Oregon. Or Isa’s SWEET_VICTORIAN close to Historic PENINSULA_PARK in North Portland with it’s award winning Rose Gardens and Community Swimming Pool. The one thing that has remained consistent with these great Rehabbers is that they have a game plan for Doing the Project.

One of the most successful strategies for doing your project starts before you take possession of the home. It starts with an analysis of the Home inspection Report that you should have done during the purchase phase. You may have had ( if not you should have given strong consideration to ) additional inspections such as :

• Full Home Inspection by a Licensed Home Inspector ( license required in Oregon )
• A Sewer Line Scope
• An Oil Tank discovery and DEQ test if one was found
• Roof, Electrical, Plumbing, Foundation or Structural inspections if needed

After a full review of all of your inspections you should immediately begin to call all of the Professional Contractors and or Sub-Contractors you may need to do the work you are not qualified to do. Make sure they are Licensed and Bonded and have good references or are in good standing with the OREGON_STATE_CONTRACTORS_BOARD  . Be sure to check out all the great information the board has on their site covering Permits and rehabbing homes etc. Now that you have identified the work that you don’t want to do yourself, it is time to ask for bids and availability of those workers ( contractors etc. ) who you have chosen to do the work.

Once the Closing has taken place it is now time to do your first in earnest walk through. Be sure to take along your Realtor. The Realtor who helped you purchase or you intend to work with on the resale of the project will be invaluable to you. Realtor’s have Great insight as to what the Buyer’s are looking for in today’s market. It will help you so as not to make a mistake ( usually caused by Ego -or I can do it myself attitude ) that you may be sorry for later. I have seen so many of these type of mistakes. I do get tired of hearing “Where were you when I needed you ? ”  I was right here all the time.

Back to the walk through. Be sure to take a flashlight, Measuring tape, Tape Recorder if it helps you remember, Digital camera and the trusty yellow note pad with plenty of pencils. The walk through not only reinforces what you had seen before when you were in the purchase phase. But it also is a chance to look at some of the solutions to those existing problems that your mind may have been working on while waiting to close. In any room that you intend to modify ( add a bathroom or staircase etc. etc. ) you will want to measure and draw a diagram of that room and any adjacent rooms that it may effect. In other rooms where you might just be doing cosmetic work like Patching walls and or painting etc. identify those rooms with a name. Like the Front bedroom or bedroom number 1, anything that will help you and your crew to stay on track. Heaven forbid your workers begin putting in a staircase to a room that only needed painting.

After you have completed the walk through and have created the drawings with the long list of work to be done. It is time to go back home and work out a scheduled work list. It is best not to take on to many areas at one time. Be sure to schedule work around any Contractors so as not to step on each others toes. It is important to remain consistent in your work. Do not finish one room at a time ! It is better to tackle all of the major work, wall moving, bathroom building, structural work, sheet-rock work etc. before you move on to the next level. It is just to easy to damage a finished room while walking through it with tools and or materials. Be sure your schedule has a time to start  and finish work and an expected date of completion for individual projects as well as the entire project.

The final portion is to double check prices on materials and or fixtures. You should have a partial list made up from the intial walk through made in the purchase phase that helped you calculate the cost of rehab to the project. List all cost of materials etc project by project. Example, kitchen would include any cabinets, fixtures, flooring, etc etc. 

Next week in  Fixers Flips and Rehabs Part 3b Doing the Project the Begining, we will cover the actual construction work.

” A real estate transaction with Herb is one You will Profit from ! “

Townhomes are not my Beef but Poor Quality is !!!

What a beautiful day. The tunes are playing and I am driving through a neighborhood that I had not been through in a while.  As I came around the corner my eyes began to focus on what appeared to be a new Town-home development. Now don’t get ahead of me. I don’t dislike town-homes or row-houses. In fact as a Real Estate Broker working in the Portland Oregon metro area I know their value. They can be the perfect answer for the first time Buyer looking to get into something they can afford or a great alternative for those who may not want to chase a lawnmower around any longer.

But here is my Beef. Over the years I have made an effort to affiliate myself with people who have high quality building standards. Most of my clients are Rehabbers and Builders. For those not in the know a rehabber is someone who buys homes, usually fixers, to Remodel, Renovate, or Rehab. In the early days of my career when their seemed to be an unending supply of cheap fixers and rehab buyers were around every corner. I decided tomake some choices about who I would work with. The following guidelines have served me and my clients well. I chose to work with people who create beauty and value. By doing so they create the future Comps that they will need to support future sales. If they were to do poorer quality work they would be working against themselves by creating a group of Comps of lower sales prices .

This brings us back to the topic at hand and my beef. Town-homes of questionable taste. You can spot them even from a distance. The poorer quality really shows up though once your’e inside. It truly is a shame. Working with builders and rehabbers I know what the bottom line costs are on these projects. I also know the costs associated with doing enough to get by or going the extra mile. It is just not that much difference in money.

So why not go the extra mile ? Well it might be the builder or rehabber just doesn’t have the skills to create better quality. Or it might be that they don’t really believe in themselves or the market. I believe however that it might be something else. Two of the builders I work with, Peter and Richard although competitors, they both share a common philosiphy. They both want to be proud of their legacy . The other day Richard shared with me his vision and hope for his future. Well into his retirement years and sitting in front of a Cozy Fireplace he envisions his grandson rushing into the room full of excitement. His grandson bursting with enthusiasm had seen an older but beautifull home that day. After enjoying this future conversation with his grandson Richard would lean back in his Rocker in front of the fireplace and say ” Yep I built that one in 07 “. 

It is all of our responsibilities to create and insist on homes of lasting value and greater standards of quality construction. Homes that can stand up as a testament to who we are  as a people.