Matt Sneyd
801-243-7006
Matt@MuveRE.com
www.MuveRE.com
Using General Contractors
3 Tips for Newbie Investors
- Frees up your time
- Better use toward RGA (Revenue Generating Activities)
- Allows you to work ON your biz, instead of IN your biz
- Same work, less time, less investment
- Must do 5-10 rehabs on your own before hiring
- Need to know what a good price is
- Always show them a few of your homes so expectations are set correctly
- Less time writing checks
- Less time at home depot
- Less complex SoW
- Can easily ramp up your business 2x, 3x, 4x
- Less Stress, More Sleep
& What I do Different as Vet
Due Diligence Checklist
Big Lesson # 1
Always scope the sewer line
Big Lesson # 2
Always scope the sewer line!
Credit
Big Lesson # 3
Learn how to use your credit to your advantage
Always measure the house
Big Lesson # 4
Always do a meth test
- Good Credit vs Bad Credit
- Credit allows you to fund your rehab, hold costs and overhead for 30 or more days
- Go out and get as many credit cards as possible
Business Credit
- Once you have been in business for a few years you can get credit cards in your business name
- Ween off your personal credit to free it up for use in long term hold properties
Newbie
Scope of Work
(SoW)
Determining ARV
- This is what General Contractors do
- Detailed overview of entire home
- Better estimation of costs up front
- Better planning so you aren't buying things at the 11th hour
- Make mistakes less often
- Everyone on the job has clear & concise expectations
- Creates a timeline for everyone to follow
- Allows you to fairly charge penalties or give bonuses
- Gives you an inventory of everything you will need up front
- Should include details
- # of items per room, color, pictures
How to properly value a home
Examples
Other Peoples Money (OPM)
- Must have MLS access
- Actives, Solds, Under Contracts
- Same property type, no style
- GLA (Gross Living Area)
- Total Sq Ft (+/- 10%-15%)
- # of Bed/Bath
- # of days back (180)
- Area (1 mile)
- DRIVE THEM EVERY TIME
- Do it when you buy & sell
Home Depot Bonus
- Discounts at Pro Desk (10%-30%)
- Ask for the Bid Room Discount
- Only for larger purchases
- Order delivered to property for $75
- Saves time, cuts # of trips to home depot
- Time=money
- No worrying if contractors are buying thing for themselves
- Less call from/to Home Depot
- The more OPM you find the more deals you will do
- Traditional lenders don't move fast enough
- Talk, Talk, Talk
- Checking, Saving, CD's only pay 1%-3%
- People that know you well or friends of someone that knows you well
- Structure your lending model so that you are motivated to buy homes
- You get money every time you buy a house
- Built on your BLT - Believability, Likeability, Trust,
- Reputation and Investment history help tremendously
- Treat your Soft Money Lenders well
- Check out our Private Lending Guide @
www.MuveRE.com/Private-Lenders
Veteran