The Home Investor Ten-Step
Renovation Program (cont)
"You are never
given a wish with-out also being given the power to make it come true.
You may have to work for it, however."
Richard Bach
Anyone can make money by renovating run-down homes and selling them
at a profit by following the Home Investor's ten-step program to
profits. In this edition of the Home Investor, we conclude the Home
Investor Ten Step Renovation Program.
Step Seven: Plans & Permits
Most renovation projects involve some work that requires building
permits to be obtained before work commences. Don't skip this step.
Working without permits can lead to problems when it comes to sell the
property.
It's a good idea to get to know your local building inspector as he/she
can give you a wealth of advice that will save you time correcting
problems down the road. Ask your inspector if you need permits for your
planned project.
Have an architect or developer draft plans to use in obtaining your
permits. Your building inspector will be able to advise you on how
detailed your plans need to be based upon your project. You might even
find you can draw up the required plans yourself (requirements vary by
building department).
Be sure all work complies with local and national building codes and
have the work inspected at intervals as required by your building
department.
If you don't already know an architect in your area, your Home Investor
Specialist should be able to suggest some names for you to evaluate.
Architects are especially useful in determining which walls in a
property can be safely removed and which will need reinforcing support
beams. (We recommend you never remove walls without first getting the
opinion of a professional engineer or architect).
Step Eight: Contracting Mini Projects
Each renovation project is unique but the overall project can
frequently be broken down into a series of mini-projects. Instead of
hiring a general contractor to oversee the entire project, you might
choose to evaluate a specialized contractor for each mini-project,
effectively taking on the role of general contractor. This allows you to
more easily take on some of the work yourself.
For example: lets say you buy a house that needs a new bathroom. You
might be experienced enough with a hammer and saw to frame the walls
yourself but you might want to hire a plasterer to apply the
plasterboard and skim coat the finish. You might be willing to lay tiles
yourself but hire a plumber to install the bathroom fittings to code.
By breaking you project into mini bite-sized chunks, you make it easier
to complete each section and you will have a greater sense of
accomplishment when one mini-project completes and another starts.
For larger projects, you may need to hire a contractor to work on
multiple mini-projects concurrently or sequentially to increase their
efficiency and lower your costs.
Whenever you consider hiring a contractor, obtain three references from
recently completed jobs (in the last three months) and contact these
people. Let them know you are looking at using the same contractor they
used and ask them if it would be possible to see the outcome of their
project. (A good contractor with happy clients will have no problem
coming up with three names).
When you are planning complex projects involving multiple contractors,
be sure you understand what steps must be complete before each
contractor can proceed to the next step (this includes getting the
necessary inspections). It may help to put together a project plan
showing each task, its estimated start and end date, and links to the
subsequent tasks. (The more technical readers might want to try
Microsoft Project to plan complex projects). This planning will help you
keep your contractors on schedule and allow you to reschedule contractor
components of the project if delays are incurred along the way (which is
almost inevitable).
Step Nine: Completing The Project & Finishing Touches
When the project is complete be sure to get final approval from the
building inspector.
Finishing touches will include interior and exterior design and
decoration. If you want to get the maximum price for your home, you can
hire the services of a local interior designer to help with the
finishing flourishes that help sell a home.
If you choose to do it yourself, try to follow The Home Investor
guidelines for preparing a home to sell (see www.USHomeInvestor.com).
You want to maximize the curb appeal of the home to attract buyers into
the home. TIP: If you are selling in the spring or summer, invest in
plenty of annual flowers for the front yard or window boxes. They are
inexpensive and lend an attractive touch to any home. Flowering hanging
baskets also add to the inviting feel of a front porch or entrance.
Step Ten: Selling The Home
Invest in a good sales and marketing team for the property to
maximize your return. There is a reason why professional builders use
professional salespeople to market and sell their homes for them!
Ask your Home Investor Specialist for help in selling your home for top
dollar. When you build a good relationship with your Specialist, they
will become an asset by finding new investment opportunities for you.
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