The Real Estate Preacher Podcast

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The truth and nothing but the truth! I’m sharing 12 myth-busters for real estate rehabbing including anyone can do this and it works in any market regardless if the market is up or down (if done right -of course). I touched on this topic in Episode 3 but want to dive deeper for your benefit because this stops many from being successful…

Show Notes

1 “Flipping” houses is legal and ethical

• Don’t let anyone tell you otherwise
• Solves motivated seller problems
• Care for neglected repairs
• Improves the neighborhood
• Transforms lives

2 It’s A Good Thing for All

• For the seller
• For the buyer
• For you
• For the neighborhood

3 Works in any market

• Done right works in up or down markets
• Right approach works anywhere

4 Your make money when you buy, not when you sell

• Most people think you make your money when you sell and hears why
• Word of caution with this mindset
• Instead focus on… 70% ARV Rule (deep dive on this rule… later episode
• Profit driver is discount from FMV

5 Buy at intrinsic value of the investment

• Replacement cost, different than current value
• See each opportunity for what it realistically can be
• The value of the skill of how to visualize an ugly duckling into a prince
• Be objective
• Stay true to your numbers and formulas

6 Rehabbing is not a gamble

• Risks with every property
• Know your market & property
• Speed
• Singles – not swing for the fence

7 Keep it simple

• Especially on your first one
• Multiple simple ones better than one complex

8 Know your worst case scenarios

• Murphy’s law – be prepared
• Don’t be negative but consider the worst
• Know what to expect, react quickly

9 Know your exit strategy

• Buy, rehab, sell – the first is great but then what?
• Know what you’re going to do before you buy
• What to sell for, when and how

10 Rehabbing houses is a people business

• Your reputation is far more valuable than any one deal
• The relationships you build, build solid ones, reap the rewards
• Plant seeds, nurture, harvest…. The Word says…

11 Anyone can do this

• With the right approach
• With the right guidance (e.g., mentor or coach)
• With the right team

12 Have the Right People on Your Team

• Right information
• Right realtors
• Contractors
• Mentors
• Begin prospecting for your team now and always