Having a reliable team and clear contracts are vital for successful real estate projects.
Challenging appraisals and negotiating effectively can lead to favorable outcomes in deals.
Investing in unconventional markets requires finding a niche and being creative.
Deep dives
Finding and managing contractors for real estate projects
The speaker discusses the importance of finding and managing contractors in real estate projects. They highlight the significance of having a team to handle the various aspects of a project and the challenges of scaling a business without relying on one person for all tasks. They emphasize the need for clear contracts, detailed scopes of work, and payment plans to ensure efficient project execution. The speaker shares their strategy for finding reliable contractors, including visiting job sites and examining the quality and timeliness of their work.
Utilizing the BRRRR strategy in real estate investing
The podcast episode features a successful deal using the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat). The guest purchased a mixed-use property and converted it into a triplex. They acquired the property off-market through an estate sale and financed the purchase and rehab with a bank loan. After completing the rehab and conversion, the property appraised significantly higher than the original purchase and rehab cost. This allowed the investor to refinance, pull out their investment, and hold the property for rental income.
Lessons learned: Perseverance and negotiation
The guest shares key lessons learned from the deal, emphasizing the importance of perseverance and negotiation. They recount the challenges faced during the project, including changing contractors and dealing with zoning and community meetings. They highlight the significance of challenging appraisals and negotiating effectively to ensure favorable outcomes. The guest's mindset of continually seeking knowledge and being open to working for free in order to gain valuable experience is also highlighted as a key factor in their success.
Tips for Managing Contractors
When managing contractors, it is important to have a detailed scope of work, finishes list, and payment plan in place. These documents help set expectations and prevent budget overruns. Additionally, establishing clear milestones and payment schedules creates accountability and eliminates the awkwardness of payment discussions. To ensure efficiency and timeliness, it can be helpful to track how quickly contractors provide estimates and complete necessary paperwork.
Finding Success in Challenging Markets
Investing in markets with slow appreciation and limited industry requires finding a niche. For example, consider leveraging the popularity of short-term rentals like Airbnb or focusing on attracting specific types of tenants. Location and market analysis are crucial to determine if there is demand for your investment strategy. When investing in unconventional markets, it is important to think creatively and look for opportunities that suit your individual goals.
Would your real estate business benefit from better rehab/construction knowledge or tactics? Well, that’s the focus of today’s show, where Andresashares her story of moving from Brazil to America and crushing it in the real estate space!
Andresa excels in an area many of us find extremely challenging: managing rehabs. In this episode, she pulls back the curtain and shares tips for how you can do the same. Andresa gives great advice for finding excellent contractors (and vetting them), the three things she puts in every contract, and how she makes sure she’s never ripped off.
You won’t want to miss her advice on finding the perfect team, determining the scope of work for your project, and learning your market. Andresa also shares a killer tip about challenging low appraisals she’s used successfully three separate times! Andresa is able to skillfully manage several rehab projects at a time while also running a side Airbnb business and gives great guidance on how you can do the same. Download this one now!
In This Episode We Cover:
How Andresa got into real estate
How she finds great contractors
The three things she puts in her contract
How she pays her contractors
Her advice for finding the perfect team
How she embraces what she’s good at
Why you should be humble enough to partner with others
