Give the contractor a bonus if they finish early #80 – 101 Street Smart Cash Flow Accelerators

It’s Lou Brown. I’m back with another my 101 cash flow accelerators to help you be more successful in your real estate business. You know renovations, I’ve done so many of them. I used to do entire neighborhoods. I’m very familiar with turning things around and one of the things you gotta deal with who can help you make a lot of money is your contractor.

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Always have a budget for your renovation #79 – 101 Street Smart Cash Flow Accelerators

Hi, it’s Lou Brown. I’m back with another of my 101 cash flow generators, planning for you to make more money with less effort. This is a great one and it is always has a budget. You know, a lot of people jump into a renovation. They really don’t know what they’re gonna do or how they’re gonna do it. They just decide along the way, which is a really bad plan.

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Know your market and the type buyer you will have and renovate accordingly #78 – 101 Street Smart Cash Flow Accelerators

I’m back with another of my 101 cash flow generators where you can make more money and less effort in a single bound. We are sharing with you today number 78 of my cash flow generators and that is renovating the property for the buyer that you want.

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When in Doubt Get a Professional Opinion – 101 Street Smart Cash Flow Accelerators #77

Hi, it’s Lou Brown. I’m back with another of my hundred one cashflow accelerators. I want to help you to be successful in this great business called real estate and one of the things is very, very important that you identify when you don’t understand what it is that you’re doing. For example, you may think to yourself that you are supposed to do something, and I’ve seen too many times when people buy carpet, when they need to be buying drywall and they bring things to the project that’s untimely for where the step is in the project. So critical that you have deliveries related to the installation of those things. The reason is that contractors and their workers are often very sloppy. Careless, it’s your materials. They don’t care about those things. And secondly, theft that it’s easy to take something that’s right there on the job. I hate to tell you this, but some of the people working on the job might be the thieves or they might tell someone else, Hey, I know some stuff that’s on that job over there.

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Know All the Costs Before you Proceed with the Project – 101 Street Smart Cash Flow Accelerators #76

My name is Lou Brown. I’m here with another of my 101 cash flow accelerators. And in this one I want you to be aware of what your costs are when you’re doing renovations. I know that sounds simple but it’s really not. A lot of people really don’t understand what they’re going to spend when they go into a project often. Yeah. Actually, as an investor, I buy from wholesalers all the time and one of the things is they bring me projects that are failed projects. Why? Because the on knowing untrained investor came in, purchased the property, started the renovation, ran out of money, got taken advantage of by the contractor, didn’t know what to do, didn’t know how to do it, crashed and burned brings me the deal. I buy it for pennies on the dollar. I’m able to finish the renovation. It’s something you need to be very aware of, particularly if you’re just getting started in the business.

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Always Have a ‘Scope of Work’ for Each of the Trades – 101 Street Smart Cash Flow Accelerators #75

I’m Lou Brown and I’m back with another my 101 cash flow accelerators. Weird talking about renovations in this segment and one of the things that’s always very, very important is do your homework in advance of bringing in any contractors goes through the property yourself. Make a list of the items that need to be done room by room and trade by trade. Now trade by trade. So one of the things that I’ve created in my system call renovations is that separated what’s called scope of work by trade. So you should have a separate scope of work for plumbing, heating and air conditioning, electrical roofing, carpentry general and painting. So those six different trades typically done by different people, you’re giving them a different list of things to do. Now what I did is break it down room by room so that you’re actually walking through the room, walking through the project, determining by tip offs that I have on each one of the different rooms of things to look at.

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Tie Money Releases to Permit Inspections – 101 Street Smart Cash Flow Accelerators #74

I’m back with another of my 101 cashflow accelerators and we’re talking in this segment about renovations. I’ve made a fortune in the arena of renovations and I want to help you to do the same and I’ve learned an awful lot about how important the contract is. Listen, your contractor. Many times these folks are in desperation most of the time and they’re always angling for ways to get their money out of you before the work is done. I find it best to not be the owner, be the manager, so the hat that you should wear is that of a project manager and then you have the authority to release payments based on the contract when the actual sign-off occurs from the County. When they have the inspection done by the County, they’re the ones that need to organize that and set that up and be present for the inspection.

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Understand Who Will Get Permits, You or the Contractor – 101 Street Smart Cash Flow Accelerators #73

Back with another 101 cash flow accelerator and one of the things that can help you a lot is to save money when you are doing renovations. And one of the things that you have to get clear in your contract with your contractor, and I jokingly say con…tractor, it’s built right into their name, right, is that it gets you to get very good clear in the beginning who’s gonna do what under what circumstances, in what time frame.

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Always Get Recent References on the Contractors – 101 Street Smart Cash Flow Accelerators #72

I’m back with another of my hundred and one cash flow accelerators. And I wanted you to know that it’s so important when you are in the area of renovating property that you always get references on the contractors that you’re going to do business with. Now let me warn you and alert you that references sometimes are set ups as well. Do you think that the contractor is going to give you people that are going to give them a bad reference? No. They’re going to give you people that are gonna give them a good reference, like their momma, their brother-in-law, other people in their life. So what you’re looking for is references that are recent references that they had work done, say within the last few months. And you definitely want to interview those folks. You want to find out what’s going on in their world. You know, did the contractor live up to the budget that you entered into?

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Always Have a Contract With The Contractor – 101 Street Smart Cash Flow Accelerators #71

I’m back with another of my 101 cashflow accelerators where you can separate yourself from being just a landlord into a housing provider, an affordable housing provider. In fact, a certified affordable housing provider. One of the things that I teach you to do in this particular segment is to separate your documentation. So in other words, we’re entering into two different agreements. If we’re going to do a lease with the option to buy, we’ve got a lease, you’ve got what we call our standard rental agreement, and that covers the relationship that we have with them as an occupant of the property. Separately, they’re going to purchase another thing called an option to buy and that option to purchase is going to give them the right to purchase that property within a designated period of time with certain requirements within that, and as a result of them agreeing to that separate agreement, they now have that option to purchase the property.

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