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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

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