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The Real Estate Rehab Investing Bible

A Proven Profit System for Finding, Funding, Fixing, and Flipping Houses … Without Lifting a Paintbrush

Paul Esajian

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Introduction

The Decision

Real estate is the best thing that ever happened to me.

We face constant decisions as we grow up and learn how to allocate our time. One thing was very clear when the moment came for me to decide what I wanted to do with my life: real estate would play an integral role in my future. Everyone I knew or read about in the real estate industry seemed to have the opportunities that I desired.

I certainly knew what I did not want to do. My inner voice made it crystal clear that I would not be happy working nine to five in an office, trying to climb my way up the corporate ladder, with other people telling me when to work and what to do. I wanted to work with my friends and family and have fun on the path to my personal and financial goals—and I felt that I could create this reality. This is what initially interested me in investing in real estate—specifically rehabbing real estate as a residential redeveloper. I knew I wanted to focus my time, energy, and resources on what I wanted to do.

This book will not offer a get-rich-quick scheme; however, you will get rich if you're willing to put in the work, planning, time, energy, and resources to accomplish your goals. While I cannot make you work harder, I am going to share the techniques and systems that I use in my own business, which will allow you to work much smarter. I will show you that you can make money on your first rehab deal if you follow my system and put in the work. Experience and commitment to following this system will dramatically reduce the time it takes to become successful and make profits on each and every rehab deal.

According to CNN Money, the average working American earns approximately $50,000 a year. You, on the other hand, can take the knowledge, systems, and education provided in this book to make at least half—if not more than—the average annual income on your next rehab deal. The concept is simple and outlined throughout the book as follows:

  1. Find = Identify and analyze distressed property in Chapters 3, 4, 5, and 6.
  2. Fund = Leverage money and write offers to acquire the property in Chapters 7 and 8.
  3. Fix = Execute my seven-stage rehab system in Chapters 9 through 16.
  4. Flip = Implement a sales process and account for every dollar of profit, as shown in Chapters 17, 18, and 19.

This book is about more than just making money. I have found rehabbing to be one of the most fulfilling things that I can do with my time to have a social impact. Breathing life into vacant, dilapidated homes can improve an entire neighborhood's look and feel. Hiring local contractors, spending money on materials and renovating properties doesn't just stimulate job growth; it also has an immediate impact on the local economy. Rehabbing properties has a significant social impact on our communities and homeowners across North America.

As a residential redeveloper, it's important to understand your role in your community. Your actions can impact the entire area. Pulling and paying for permits with the city or county and placing a once-distressed property back on the local municipalities' tax roll generates revenue in the form of property taxes. Listing your finished rehab with a real estate agent, selling with a stager, closing with an attorney or escrow agent and financing a loan, creates jobs for everyone involved. Of course, there is the satisfaction you will receive by providing a beautiful house to someone who will make it a home. All in all, mastering the craft of rehabbing real estate by perfecting residential redevelopment is an asset and tool that has a beneficial impact on both you and your community.

I am fortunate to be a mentor, coach, partner, and friend in an amazing real estate education company through FortuneBuilders, Inc. My partners and I have devoted our life's work to documenting, improving, sharing, and coaching all of the real estate principals and systems I will share throughout this book. Through our active residential redevelopment company, CT Homes, LLC, we execute and share the strategies and systems on a daily basis that I will be teaching. My partners and I started teaching and sharing these tools in order to make our first local market more efficient so we could do more deals with more investors. Teaching our competition allowed us to develop an amazing network of confident investors; as a result, we all did more deals and helped each other build our businesses. FortuneBuilders, Inc. has taken this approach on a global scale and has the largest committed investor community. Throughout the book, you will hear some stories about this amazing community that is successfully improving houses and neighborhoods across North America.

Now is the time to make a positive impact on your community, master the rehab craft, create wealth, and improve your financial future. When you make your first $25,000 profit on a rehab, you will see the power this system has to change your life and the lives of those around you.

So let's get started!

An Overview of the Seven-Stage Rehab System Described in This Book

As you move through this book, I will get into the specifics of all seven stages of a rehab. Here is a brief overview of my system and how it differs from other real estate rehab books and gurus.

Stage 1 is all about gathering information pertaining to a particular property. You must perform your due diligence by taking pictures inside and out, measuring everything, and identifying all the work and improvements that need to be made. Basically, this means that you take as much time as you need at the house on your first visit after owning or controlling it. Determine what it will take to turn that house into the most desirable property in the neighborhood.

Stage 2 involves reviewing all of your notes, the list of improvements that need to be made, and pictures of the house. You'll use these items to put together a detailed scope of work, a document where you'll write out every improvement, work needed, finish material and item number with price that your licensed and insured contractor will install and execute once they start work on the property. The scope of work is your written manifesto of exactly what you want done to the property.

Stage 3 consists of developing a contractor and job-bidding system to identify qualified, licensed, and insured contractors. Just as we take time to find the right property before we make an offer and close, we have to perform the same extensive marketing and analysis process to find the right contractor who will complement our system—which in turn will make you successful on the rehab. It's critical to remember that 50 percent of your rehab's success is determined by the quality of the team and, specifically, the contractors you hire to get the job done.

Stage 4 introduces and explains how to execute the paperwork that will keep you on time and on budget with your contractor. The following six critical documents are essential to your success as a rehabber and can protect you from any complications and liability that may arise:

  1. Independent contractor agreement: This document is specifically designed to provide clear communication between you and your contractor. You have to articulate and explain why there is a penalty for failing to meet a deadline. It should spell out why they have to add you as an additional insured on their insurance policy with minimums to keep you safe.
  2. Final scope of work: The final scope of work outlines, in writing, exactly what needs to be done to the property.
  3. Contractor payment schedule: The payment schedule ties payments to specific benchmarks and milestones to incentivize continued and ongoing work until the house is complete.
  4. Insurance indemnification form: This is a stand-alone statement re-iterating the insurance needed by the contractor.
  5. W-9 form: This form will permit you to properly 1099 each contractor at the end of the year for his tax responsibility.
  6. Unconditional lien waiver: The unconditional lien waiver is to be signed upon completion of the work and before you hand over the final check!

Stage 5 is the rehab itself. Wow, look at how much work we have already done in stages 1 through 4 and we have not even yet pulled the first shingle off our property! Truthfully, our success at the end of a rehab is directly correlated to our preparation and successful implementation of our rehab system. You need to avoid mistakes before they happen—and this system will help you do precisely that.

Stage 6 and Stage 7 have everything to do with buttoning up your paperwork while simultaneously implementing an impressive selling system and marketing blitz. Now that the rehab itself is complete, you must conduct the contract closeout and prepare to market and stage the property for sale. These are the final steps you need to take before you receive your first check. After all, if you finish a rehab and can't get it sold, you can't expect to make profit! Stick with me, follow my systems, and leverage the knowledge I will share with you and you will be well on your way to your first check.

Part I
Getting the Rehab

Before we can implement our Seven Stage Rehab System, we need to market and find properties that need renovation. Once we find a rehab property, we have to do a proper deal evaluation to determine whether it's a good deal. After we determine it's a good deal, then we have to finance or pay for the rehab property. Throughout all these steps we will need to have the knowledge and confidence to estimate repairs and write a proper purchase and sale contract to control and close on the deal. Part I and the following nine chapters prepare us for all these steps, provide a system to implement, and most importantly will give you the confidence you need to move forward with writing an offer on your first or next rehab deal.

Chapter 1
How to Make a Profit On Your First Deal

You may think that you need to have a lot of money to break into the real estate industry—but that couldn't be further from the truth. Neither prior knowledge nor a bank account full of cash is a requirement. Yes, you can take advantage of more opportunities if you have both experience and money. However, we all have to start somewhere. In the words of one of my coaches, “Every master was once a disaster.” No one knows what they're doing right at the beginning. But we all start somewhere.

Master Rehabbing Now

One student of mine, a professional football coach named Scott Squires, was overworked and traveling nonstop. Although he enjoyed his job, it did not provide him with the personal or financial freedom that he desired. He wanted to spend more time with his three kids. Scott took the first step to having that kind of life by participating in our real estate coaching program. He had absolutely no real estate experience, but he started following the principles laid out in this book. His first deal in Southern California was a HUD home that he purchased for $350,000. He ended up spending $13,000+ in rehab costs and sold the property for $415,000. He bought, rehabbed, and sold the property within 84 days and made a profit of $49,000—which allowed him to spend more time with his family and leave his day job. If you want to hear Scott walk you through his first deal, you can listen to his story here: www.fortunebuilders.com/video-case-studies/scott-squires.

A mere two years later, Scott sent me a text message telling me about his latest deal at the time: using my rehab system, Scott made a profit of $216,000 on one deal! By following the same rehab system I share in this book, Scott no longer travels for work—and he is able to spend as much time with his family as he wants.

You're likely wondering at this point if my system can truly apply to your situation—perhaps even convincing yourself that this just won't work. You may be thinking that Scott is an isolated scenario—real estate success can occur anywhere and to anyone. Imagine instead the success you will enjoy once you commit to your own goals. If you apply the principals, knowledge, and enroll coaches and mentors to successfully move forward, you will experience the results you desire.

How does a full-time radio DJ and a high school science teacher with no real estate experience make money on their first rehab in Richmond, Virginia? Jeff and Joanna Anderson got their first deal from a marketing campaign I will share in this book. They financed the purchase price of $80,000 with a hard-moneylender (which you'll learn about in Chapter 7, “Financing Rehabs”). After spending $61,000 on the rehab, they sold the property above their asking price for $215,000. That is a $45,400 profit—on their very first project. Check out Jeff & Joanna Andersons first rehab profit here http://www.fortunebuilders.com/deals/jeff-anderson/.

If you enjoy learning, self-improvement, and making large amounts of money, then you have come to the right place. Again—I am not offering a get-rich-quick scheme. It takes hard work, commitment, and a positive attitude. More importantly, it requires you to take action now. So let's get you started on making your first real estate rehab profit!

Our Biggest Obstacle

To make progress, you must take advantage of the knowledge I share throughout the next 22 chapters. It is entirely up to you to start achieving your personal and financial goals.

The biggest obstacle you will likely face is fear. People are afraid to fail, to be unprepared, that it'll be too difficult, that they won't have enough money. Some people even fear success. These are all legitimate concerns; but the way you handle this fear will dictate your future as a residential redeveloper.

Work finally begins when the fear of doing nothing exceeds the fear of doing it badly.

Alain de Bottom

Most people see fear as a stop sign—but really, it's a pay attention sign. That twinge of worry in the pit of your stomach is a signal to pay attention to what you don't know, what you need to know, and what you are already familiar with. Think about an opportunity that you knew you wanted to take, but didn't. What held you back? How will that be different this time around?

Once you change your perception of fear, you will notice countless opportunities. More importantly, you'll spend your time and energy more productively. Instead of avoiding fear, you should welcome fear with open arms. When you identify fear, then you have just identified what you need to learn and gather more information to move forward with confidence.

You don't have to know all the answers; you just need to have access and be willing to approach those who do. Henry Ford was not the best mechanic, nor did he know every detail about building a car. However, he had no equal when it came to recruiting the smartest and most talented individuals. The people you surround yourself with are integral to your success as an investor.

My Story

Whenever I sit down for a lecture, read a book, or take advice from someone, I always ask myself: Why should I be listening to this individual and what credentials do they have that make them an expert? Since you're likely wondering the same about me, let me share some statistics regarding my experience in the real estate industry.

Over the last decade, I have managed over 1,000 residential real estate transactions. I have spent over $35 million—from renovation materials to contractor fees for single-family homes—in states from Connecticut to California and everywhere in between. I currently manage and operate an eight-figure investment portfolio for my partners and me through real estate.

I know what it takes to begin at ground zero. I started with no money and zero real estate or construction knowledge, yet was able to create successful real estate transactions and a thriving real estate business.

When I graduated college, I had a degree in Agricultural Economics—earning what many may consider a degree in farming. Then I went through an entire year without a job. I initially took a job as a bar back and after a ton of hard work, finally became a bartender. The only things I ever flipped before houses were cocktails and dreams!

There were a few things that allowed me to bridge the chasm between bartending and rehabbing:

  1. Step One: Embrace every learning experience that presents itself and read material relevant to your goal.
  2. Step Two: Enlist the help of coaches, mentors, and professionals.
  3. Step Three: Do not allow failure to impede on your inevitable success. And yes—you will fail. However, the sooner you embrace that failure, the sooner you can overcome it. If you fail with knowledgeable mentors and coaches supporting you, you'll find it much easier to pick yourself up and keep moving forward. Too many believe that a single mistake will lead to their demise. But allowing yourself the liberty to make minor mistakes only moves you closer to achieving your goals. Some of my best students did not let the fear of failure keep them from their goal of making money as a new real estate investor.

My First Rehab

The first rehab property I purchased was on Mead Street in New Haven, Connecticut—and I remember it like it was yesterday. We purchased it on a Saturday morning foreclosure auction. My partner and best friend since junior high, Than, and I dispatched to different auctions that morning with our last bit of money scrapped together into a bank check that we needed to take part in the bidding process. I ended the day without success winning any bids—and then got a call from Than, telling me he won the bid for Mead Street for $75,000. I then asked what seemed to be the next logical question: “Where are we going to get the money to close on the property in 30 days?” I guess he gave me his best shot at a logical answer: “I don't know.”

This was our first lesson in using leverage to get our real estate business going. We employed a very technical fundraising application called dialing for dollars—that is, we literally called every number in our cell phones to raise the money needed to close on this property. What we were not able to borrow from friends and family we borrowed against our credit cards, increased our credit amounts, and got cash advances. This approach may not work for everyone; but it was all we had, and we wanted that deal.

Once we closed, we estimated a rehab budget for the property and set out to find and work with contractors to get the job done and put us in a position to sell the finished house. We probably made every mistake a rehab investor could make. We did not use a scope of work; we did not use contracts with all of our contractors; and we certainly did not develop an organized, well-thought-out payment schedule that would motivate our contractors to complete the house on time and within budget. However, we were lucky enough to sell the house for more then we estimated—and enjoyed a net gain of $27,000.

I have to ask myself when I look back, “How on earth did we make money on that deal?!” Neglecting to have a true system in place can get you in trouble—and it usually does. In the business of rehabbing, you can make a lot of money—and you can lose a lot of money. The difference between the two lies in following a proven path, implementing a system that others have used successfully, and enrolling other people to support and help you achieve results. This will give you the confidence of accomplishing a known outcome each and every time.

Before our first rehab on Mead Street, Than and I started with the idea of buying multifamily rentals. I thought we would kick our feet up, collect rent, and call it a day. So the first properties I bought as an investor were rentals. I was immediately made aware of the problems landlords encounter on a daily basis. In short, being a landlord was not fun when you are not good at it. More importantly, I was on a path to get rich slowly, if at all.

I was constantly chasing tenants for rent and had made the mistake of buying buildings that had years of deferred maintenance. This approach forced my partner and I to reevaluate our business model. How could we make large sums of money in a three- to six-month period of time? Unlike rentals, rehabbing did not create monthly cash flow. However, when you completed a rehab job and sold it, the profit potential was 30 times that of a monthly rent check. This is why it is so important for you as a real estate investor to do the business niches in order. Start by making money rehabbing, then move those profits into long-term, passive income rentals.

In 2004, we enlisted the help of a couple crews and completed multiple rehabs and wholesale deals. By our third year, we set out to complete 100 deals a year. At this stage, we had built systems, hired team members, enrolled coaches and trainers and we wanted to really test our model. After three short years, we surpassed our goal and completed 104 deals, with the majority of them being rehabs.

When I got into real estate, I was learning a discipline that I could use to make money anywhere and at any time. But more importantly, it served as a vehicle for the lifestyle I wanted to live—in California, closer to my family, by the ocean, and able to wear flip-flops during the week. We call this lifestyle by design. Thus, in 2009, my company and I moved from New Haven, Connecticut, to San Diego, California. I now live in a beach community, wear flip-flops whenever I want, and can walk from one of my houses to work, the ocean, or my offices in just a few blocks. Lifestyle by design!

Your Turn

Write a paragraph of what your lifestyle would look like if you had 100 percent control over where you lived, with whom you worked, when you worked, what you wear to work, and so on. This vision exercise will get you excited about moving forward with the goals you have for yourself and the results they can produce.

The Opportunity

Have you ever been driving or walking somewhere and noticed a property that needed some love? You know—the one with a front lawn taller than your waist or that needs an exterior paint job and siding more than you need a haircut.

Our first myth to dispel is that you can make a profit on any house. You can only make a profit on the right house—the one that needs work, has a problem to be solved, and has an owner who is motivated for you to create a win-win to buy it. When you find the right house, you can then implement the seven-stage rehab system without lifting a paintbrush.

In every market—up or down, buyers or sellers—there is always someone telling you that now is not a good time to invest in real estate. Ask yourself the following three questions when you hear that advice:

  1. Does this person make 10 times more than I do financially?
  2. Does this person have the lifestyle and freedom of time that I desire?
  3. Is this person even experienced and currently making money in real estate?

Ninety-nine percent of the time the answer to these three questions will be no. Everyone has an opinion. If I listened to everyone who told me that now is not the right time to get into real estate, I would still be at my first job.

Think Like an Investor—Not a Contractor

Each level of income you desire demands a different version of you. If you approach rehab as a do-it-yourself hobby, you'll see that in your return. Your time is not best spent painting the house yourself to save money. This is a trap that prevents many would-be investors from actually getting to the next level. The next level is when you spend less time on one deal, make more profit on that deal, and spend your time on things that are more important than real estate.

My golden rule on rehabbing real estate is, “Never get your hands dirty.” Our job is to find motivated deals, raise money, and manage a successful rehab. You are in the business of turning money. How quickly can you put one dollar in so you can get three dollars out? When this becomes second nature to you, you will realize that rehabbing is a vehicle for multiplying your dollars. When you save money by doing the work yourself, you are slowing down the job, putting out sub-par work, and missing other opportunities while you are working on site. Basically, by getting your hands dirty, you slow down the opportunity to get your money back sooner. Ultimately your job is to put one dollar out of your pocket as an investor and see how quickly and efficiently you can bring two dollars back in your pocket.

Put your contractors in a successful system; this shows respect for their time and ability. Make it clear that you are not an errand boy or girl to fetch materials for the house. You must have enough confidence in yourself to truly understand where your time is best spent—and the following chapters of this book will show you just that.

Chapter 2
Never Lift a Paintbrush
Why Doing It Yourself Is the Biggest Mistake Most Rehab Investors Make

Where Most Investors Fail

We all have to file taxes. Imagine what would happen if everyone you knew, regardless of their profession, did their own taxes—with no help from a CPA or accountant. Let me give you an example. Your passions and talents lie elsewhere, but you have to allocate 6 to 12 hours of your time filing your taxes or more. Yes, you may save a little money, but you are sacrificing something that is more important—and you aren't functioning at your highest nor making the best use of your time.

As we discussed in the previous chapter, a rehab investor should not be performing work on the house. Rather, you should focus on activities that will make you, your contractors, and your entire team more money: finding deals, funding deals, fixing deals, and flipping deals. Concentrating on these high-priority tasks will positively impact everyone involved in these projects.

For fun, let's assume that you are already working on your first rehab project. Because I have been there, I've included the following potential mistakes you will make if you do not implement the strategies in this book.

The Story of How to Do Everything Wrong

By the time you get your first rehab deal, you are going to be so excited that you may forget how valuable your time is as an investor. For the first month, you will be driving friends, family, and co-workers to your new rehab project without realizing how much time you are wasting. You neglect to think things through, prepare, or identify the contractors and work that need to take place. Before you realize it, you'll have burned a month and countless visits to the house by not being prepared and organized with a system. In financial terms, you just paid for a month's worth of holding cost. After loan payments, utility bills, taxes, insurance, and maintenance you have nothing to show for everything you have done up to this point.

By the time you finally make a few decisions, you hastily hire a contractor. Unfortunately, you failed to interview, prescreen, and check the contractor's referrals; and you did not set up the proper working relationship through the six critical documents. And you hired your friends, mothers, sisters, and sons.

The contractor starts the job with a point and shoot scope of work, meaning you walked them around the house while pointing with your index finger and verbally telling them what you want done in each room. You don't write anything down, let alone even consider having them sign the six critical documents that will keep them within the rules, timeline, and budget necessary for you to succeed.

Finally, the job starts. However, the contractors require 50 percent of the agreed upon price as a down payment before they'll start working. So you pay them. Since the only leverage you have over any contractor is the money you have not yet paid them, you're in trouble. What incentive do they have to get the work done on your timeline or hit your milestones now that they already have half of the project money in their pocket?

As the rehab gets started, you are eager to participate and get your hands dirty. You proceed to ask the contractor what you can help with, at which time he gives you a list of supplies to pick up from Lowe's or Home Depot. While you may think you are helping, you just turned yourself into a $10/hour errand boy/girl.

The job reaches approximately 25 percent completion and the contractor explains that he ran into some unexpected costs and work that he needs more money for. Remember, you already paid 50 percent of the contractor's fee up front and they have only completed 25 percent of the work. Now they are asking for more money and you pay them another 30 percent of the fee to keep working. You're getting yourself into quite a hole here.

The contractor gets back to work and swiftly completes another 10 percent of the project. Their immediate progress allows you to feel good about your decision. However, the contractor happens to find another job and client that is willing to pay them another 50 percent down payment. He takes on the additional client and gets 50 percent of the money and now has an obligation to someone else's project. In the meantime, no one is working at your house.

Growing concerned, you call the contractor who gives you one excuse after another as to why they are not at the project site, and promises to be at your property the next day. However, they are once again a no show the following day—after you've continuously called and left numerous voicemails.

You now have a house that is 35 percent complete after having paid out 80 percent of the cost of the job. You have a contractor that no longer answers your phone calls and sends you straight to voicemail. Then again, why would they answer your calls? They already have a 45 percent profit margin (80 percent of the payment minus 35 percent of work completed) without ever having to set foot in your house again.

You might wonder why I know exactly how a situation like this unfolds. I know, because this exact situation happened to me. I have made the mistakes that you should not make! That is why I am so passionate about sharing my system and years of experience rehabbing properties—to help people do it the right way from day one. Ultimately, the outcome of my example situation resulted in the hiring and firing of multiple contractors to finish the house. By the time my project was complete, I had already gone way over budget and was months past my deadline. I have lived and learned from my past mistakes—and am hoping you will too.

You might also wonder if it's possible to make money in the scenario I just described. Sometimes. However, making money in a situation like this can potentially be more dangerous—because it can lead you to believe that this is the experience you have to go through when rehabbing a property. It provides a false sense of confidence that you were actually the reason the deal made money, when it's truly just a matter of time before you tie up on a deal and lose everything.

Most investors fail when they neglect to focus the majority of their attention on their highest and best use as an entrepreneur—when they do not respect the fact that there is an assembly line-style system they should follow to produce a systematic, repeated known result that I like to call a rehab profit. Follow the system I share with you on every project and you will turn a profit.

Think Like a Business Owner, Not a Consumer

A consumer focuses on what things cost; a business owner focuses on what things are worth and the value they can bring into their life. A consumer doesn't spend money they don't have. A business owner spends other people's money on anything that will bring value back to their business and life by utilizing leverage. A consumer is paralyzed with fear of delegating work that won't come out as good as they can do it. A business owner can't wait to delegate and have someone do the job better than they did so they can focus on growing other areas of their business.

Up until this point, you've likely spent your life thinking like a consumer. You need to start making the shift to a business owner's mindset. The two biggest challenges will be a need to reevaluate your perception of time and leverage. Please fill in the blank: “Time is __________________.” Let me guess, you answered money. (I know, because I can read minds.)

Ninety-nine percent of us are programmed to believe that time is money. This is simply not true. Can you give me an example of when you were able to spend your money to get more time back in your life? When did the money you acquire allow you to go back and buy time so you could spend it with a loved one who is no longer here? Unfortunately, none of us can give an example of when money bought time. This is because time is not money—time is everything!

There is one level playing field for the rich and poor, the haves and have nots, the privileged and the unprivileged: We all operate with the same 24 hours in a day. The differentiating factor between people is how they use their time to determine what they accomplish and achieve.

You must also reevaluate your definition of leverage. A successful residential redeveloper leverages everything. They leverage money by establishing, accessing, or finding credit to borrow funds and further their business. They leverage coaches, experts, advice, and information to reduce their learning curve. They leverage licensed and insured professional contractors to help them complete an amazing rehab.

My friend and coauthor Michael Gerber explains the three stages of being a business owner, outlined in Figure 2.1. We all start in the first stage as a technician. This is when we are actively doing the work that the business requires, running errands, producing and creating our product and everything in between. The second stage requires you to become a manager, delegating to others, while embracing the responsibility of achieving the end result. Finally, the third stage deals with becoming a true business owner—an entrepreneur. This is when you own a business that works for you instead of having a business you work for!

c02f001

Figure 2.1 Three Stages of Business Ownership

Value Your Time by Outsourcing MWA Activities

An MWA is a minimum wage activity. MWAs are jobs you should outsource and remove from your daily schedule as your time becomes more valuable so you do not get stuck as a technician in your own business. As an aspiring real estate investor, creating successful habits is critical to undertake early on in your career. Some options might be to hire a cleaning service for your home, or pay the $12–$20 charge to have the grocery store deliver groceries you order online. There are countless ways to let others complete the menial tasks we all need to complete in our lives, so that you can free up your time to concentrate on moneymaking activities. The next time you are completing a chore, ask yourself if you can hire a service to create more time and get your next $25,000 profit deal.

Defining a Residential Redeveloper

A residential redeveloper is a more credible title than a flipper or a rehabber or just some house dude. A residential redeveloper renovates the eyesores in a given neighborhood and produces quality housing that everyone can be proud of. A residential redeveloper creates jobs within their community. A residential redeveloper is someone who takes pride in their work, their community, and creates a social impact on every house with character and integrity.

It does not matter if you want to consider this as a part-time endeavor to make the occasional rehab profit or if you want to go fulltime and increase your earnings potential beyond anything you have ever imagined. Being a residential redeveloper is all about the mindset, working smarter and not harder, making the best use of your time, and delivering the best product (a finished rehab) the right way (pulling permits and following all code compliance), and delivering a home to families that will take care of it for years to come.

Time is everything. Do not fall victim to the do-it-yourself mentality. Start thinking like a business owner starting today. Leverage money, resources, systems, mentors, and anything else that is available to get you to your personal and financial goals. Through adopting this mindset and attitude you will transcend from the technician in your own business to a true entrepreneur who enjoys the benefit of owning a business, rather than most technicians who have a business that owns them.