40k FlipsModule 8: Mindmap Conversion to Word Document

8TH COACHING CALL

new locks o $15 each o 2 doors

$30 MAJOR SYSTEMS = $10,950

o order dumpster $450 a 1 40 yd. dumpster

o Windows $2,000 20 windows $100 each

o Siding Keep and wash and paint $1 ft. labor

$1500 1500 sq. ft.

o Paint 5 gallon bucket Roll on $120 7 gallons sprayer $200

o Gutters $300 materials $800 labor

o Doors $500 10 doors $50

o Roof $4,000

o basic landscaping $1,000 $200 mulch $500 plants

1 | P a g e

2-3 days o $1,000 Plumber o $1,000 Electrical

DEMO LABOR

o $10-$15 a hr. o cheap workers o want them to know what’s going on

some minor construction experience o 2 guys

40 hrs. 5 days $12.50 an hour $1,000

o drywall phase Materials are very cheap A lot of labor Here 2 guys

12.50 an hour 40 hours 3 weeks

o $3,000o PAINT

LABOR 1500 sq. ft. $1500 $1 a ft. just for labor 2000-2500 sq. ft. $2500

o MATERIALS $15 - $25 per gallon

(2) 5 gallon buckets paint $90 for 5 gallon 5 gallon ceiling paint

$75 One Coat of Paint Kills Paint $250 total

SUMMARY o $1750

kitchen 15 cabinets

$100 $1500

2 | P a g e

Standard Oak Neutral Cabinet RTA cabinets

o "ready to assemble" cabinets King of Prussia, PA

countertops $50 per piece 4 pieces $200 - $250

o pre-made Big Box Supply Middle Of Road

backsplash 20 ft. $5 $100 - $200 4 x 4 tumbled marble

o $3.99 a sq. ft. flooring

400 sq. ft. o $1.25 o $500 flooring o vinyl stick tile o $1 - $1.20 a foot

big box stores Lowes, HD, Menards

appliances $2500 stainless steel set labor

o 1500 bathroom

half bath o $300

full bath o $1000

does not include the tub vanity lights

o $30 - $50 on clearance

Labor o $750

washer / dryer $500

3 | P a g e

o resell store wouldn't know they are used look for ads and specials

Flooring house carpet $1.5 a ft. 600 sq. ft.

o $1200 w/ tax laminate hardwood

o $1 a ft. o 600 sq. ft.

$700 w / tax LABOR

o 1500 property launch

$100 ethical bribe $600 Jason $1000

o total home bonus package $1,800 - $2,000

o Builders Risk Policies American Modern Ins

o $100 a month or less AFFINITY GROUP KANSAS CITY

o Pay Up front for Full year policy o theft o dwelling o burst pipes are not covered

shut the water off at the main concerned about water leaks

flush mount lights buy bulk $10 a light

ceiling fan $50 - $75 fan with lights

o SUMMARY $30,930 60/ 40 split

$14,000 LABOR $16,000 MATERIALS

MOLD AND WATER HOUSES ARE THE BEST HOUSES!!!! basement

4 | P a g e

75% of the time it’s a sump pump issue the dumb banks turn off electricity and turns off sump pump

MANAGING MULTIPLE REHAB PROJECTS TEAM

o Project Managers Chris Russ John

o Checking on Projects Planning

o finding contractors price break nights weekends craigslist

tons of calls lots of junk calls

provide resume 1 out of 10 is a decent fit even the 1 is not perfect weeks if not months

Sections general labor section under "JOBS" real estate services labor / move under "SERVICES" pay starts low

o $12 - $15 - $18 an hour John

found at a rehab he was finishing stuff for bank

Chris craigslist

Jeremy friend of friend been with us for a year

Randy craigslist http://akroncanton.craigslist.org/lab/3839080556.html hated chasing money

act ignorant and see what they tell me what do you charge always ask for a resume send me marks resumes

interview questions

5 | P a g e

GET FROM MARK? resume first shocked by how many guys actually have a resume

o a lot of guys have a resume experience

look for experience at least 2 years construction background

phone interview most important are they honest? will you take $10 an hour?? what are they willing to take before we meet I’m a small construction company looking for help I have a small project going on and I need some help have you ever done a rehab vs. a remodel?? references

meet me at this house we are working on what would you do in here? what kind of money are they used to using and spending? are they showing of? a lot of open ended questions? what are you used to being paid? too many ideas is bad news over time over budget too hard to get rid of

Key Statements always say you don't need work I’m looking to line people up I have projects coming online always say you don't need work don't tell someone you need them clean cut enough well spoken

o if they check out "let’s start tomorrow"

everyone gets paid on 1099 checks doesn't 1099 anyone GET FROM MARK

ads resumes interview questions add to members site

6 | P a g e

Rehab Price Guide.docx

NOTE

only difference between 4 weeks and 8 weeks and 12 weeks is the size of the house and the extent of the work

STEP 1: DEMO (Takes 1-2 weeks or less) DEMO securing the house

o new locks o new lock set

double $15 o turn and dead bolt o single

$10 o on all doors o easy access in and out o sledge hammer

bust the lock out o new lock set

securing the utilities o switch over gas and electric

utilities company wants the HUD 1 order dumpster

o one trailer load 20 yard

rarely use $300 - $350

30 yard 20-30k budget $400

40 yd. 30k - 40k budget $450

o includes drop off and pick up o typically for 2 weeks o some companies charge $5 - 10 Dollars a day

after 7 days o (2) 40 yd. dumpsters

40k+ o what happens when the dumpsters gone

haul away

7 | P a g e

yourself order another dumpster drop it off at a trash dump

o ESTES HAULING big company local to Cleveland / Akron call today have one tomorrow put it where you need it

o Landscaping trailers if less than 20yrds take to dump

demo everything o demo kitchen

remove all cabinets, countertops, appliances, walls etc. collapse cabinets crush cabinets

o saves space o demo baths

save tub and surround if possible reglaze it

saves labor comes with warranty

$150 to replace you are saving the labor costs

o remove all old fixtures, sinks, toilets, showers, walls, etc. basic white toilet

$100 vanities and sinks

$100- $500 o demo tile in bathroom

skim and smooth or cut drywall out replace or paneling

does it add character repaint usually take tile off without demo'ing the walls

then skim and patch the walls o take out all trash

order dumpster put all trash in garage

o baseboards keep trim and paint if possible

8 | P a g e

especially in older houses adds character

o PRO - PACKS 120 ft. of baseboard for $50 minimal cost for big impact

o all doors off doors habitat for humanity will take old doors and frames casing

o PRO - PACKS $25 for 100 ft. of it save what you can

o windows will stay at beginning until order comes in measure for ordering almost always we do

o roof almost always do

o siding usually keep old siding and paint almost never do

o garage doors 50/50 save them and use

o hardwood floors anything you save move to garage or POD

LABOR o $10-$15 a hr. o cheap workers o want them to know what’s going on o some minor construction experience

Make a list of what you are keeping o tear out everything else o have stuff to keep o what do we keep o windows

wood windows we throw away save if it has a lot of character save the sashes put in new rope and weights are they new vinyl

15 years or less we keep 40 x 60 equals 100 inches

9 | P a g e

$1 an inch new windows LANG EXTERIORS

Phone numbero 773-737-4500

ship anywhere we do measuring we send to them they proof

measurements orders

number of windows cost

order fax and email can be done in one day

they order and start 2-4 weeks to ship and arrive

if they are slow 1 week manufacturing

5 to 7 business days 1 week shipping

if they are busy 2 weeks $100 buy new

buy and ship we install

$200 or less bought and installed is a steal $50 a window to install for labor

if a window seal is broke create a new one they can be saved and put back together

cheaper to order a whole new window $100 to fix $100 buy new

not include install take 30 minutes per window $50 a window

$180 new window includes install double pane double hung $200 or less bought and installed is a steal sometimes quicker to repair

o siding

10 | P a g e

keep siding paint siding

aluminum siding from 70's scrape and paint

o save $10,000 new vinyl cheaper siding

$50 a sq. ft. medium siding

$80 a sq. ft. 80% of a house is siding rule of thumb measure the exterior and subtract 20%

o roof pressure wash the dark spots of a roof if you can see a lot of buckling price per square foot

$100 in materials $75 10ft x 10ft "a square"

o 3 bundles make up a sq. o $25 per bundle o $75 for shingles

at a supply house Menard's SPECIAL

$21 a bundle $63 a sq. for shingles $25 a sq. for felt

ice guard labor

$100 a sq. ft. 20 sq. ft. roof lower to medium sized

o $2000 o labor o $2000 materials o 4-5 grand

use 3 dimensional shingles roof top delivery get it if you can

38 Edgewood roof we are saving 15 to 20 years old

11 | P a g e

no leaks that we know of easier to take some back and replace individual shingles instead of

replacing the whole roof 3954 Homestead

Ranch 30 deep x 70 wide 2100 total

o divide by 100 o 21 squares o 100 a sq. in materials

o gutters power washed and painted no dents or holes not expensive buy basic white gutters all new gutters

1500 sq. ft. ranch o $500 - $1500

2500 sq. ft. colonial o $1500 - $2k

ladders scaffolding any handyman can buy gutters cut them and install them

o doors rarely save sometimes we save wood doors b/c they have more character 2284 bailey in Cuyahoga falls we saved the doors $50 apiece interior

white 6 panel pre-hung

Menards $39 Lowe's will price match $100 - $200 a piece

o Exterior stuff to save

extra materials sinks newer put back in

o new $100 cabinets can be painted

take out and paint and put back in

12 | P a g e

wood doors sand down and paint white

vents wipe down and spray paint save vents in rentals sometimes you can save new vents $9

cut grass basic landscaping so it doesn't look vacant anymore

Step 2: TEST AND REPAIR UTILITIES (takes 1-2 weeks or less) test all utilities

o water lines plumbing

get water on and then run the lines make sure the water is working check drains

o cheap for materials o work is an pain the butt

Copper has to be perfect its solid has to be soldered with gas and flames most expensive will add some value to your house worth it in a higher end home

PVC has some bend in it plastic anyone can learn to glue like a maze less expensive

o 1/2 to 3/4 of the cost of copper PEX

bendable PVC comes in loops of piping Crimper: Tool

water line ring on it

o comes in rolls o red blue o cold hot

13 | P a g e

drain line and more expensive o 3-4 inch

supply tie offs

o tie offs 1/2 inch o 1/2 inch

drain o 1/2 inch to 4 inch

water lines are less o 1/2 inch or 3/4 o comes out of tank

hire plumber $50 an hour or less is good $60 -$75 an hour

o more expensive side o electrical

testers you buy each outlets

check all breakers tripping not working need changed out?? label each breaker in panel

o which breakers are running each room and label once all breakers are on

o make sure all outlets are hot and they work o not working

go into the wall see if outlets is bad make sure wire coming into the wall is hot check for main break in wall

rarely happens check for wires that are not connected

in room in upstairs if there’s need to demo walls or try to jump on electrical

first and plumbing outlets

electrical panel $100 comes with a few breakers breakers

o to fill the box o cheapest breakers are $4o higher amp breakers are $8

14 | P a g e

o $100 for an additional 15 breakers o on 3/4 of our houses we put new panel in

Bad Brands o Federal Pacific

labor o LABOR install panel and breakers = $150o re-wire a whole house = $2,000 - $3,000 o HIRE AN ELECTRICIAN

$30 an hour low end

$50 an hour going rate

pay for their time and materials at cost $60 -$75 an hour

o high end Bruce Electrical and Plumbing

$4000 whole house

Step 3: PATCH, SKIM, MUD, TAPE - Takes 2-8 weeks could take 2 days or 8 weeks depending on the house and extent of the work

o putting everything back togethero patch work to walls and drywall

mostly about the walls patching and fixing walls repairs and replace drywall patch nail holes in walls repair any drywall from the demo / electrical and plumbing fixes want to do drywall

especially in the kitchen really old houses with plaster walls once you start taking down cabinets and nails

o starts to fall apart o its chunky

PATCH mostly time and labor materials are cheap

SKIM mud with a fat knife watch out for texturing cracks

o fix and skim patch

o do not want to do too much paneling

15 | P a g e

paint white paint a wall color prime it white sticks to shiny paneling

o in bathrooms always keep it white

o this can be frustrating step lots of patching and mud and tape 38 Edgewood

1 week drywall DRYWALL FINISHER!!!!

$500 for whole house texturing final drywall

Step 4: PAINT: DOORS, KITCHENS, BATHS (takes 1 - 2 weeks) NOTE

o start kitchens and baths o if electrical is all done you are ready to put it back together o paint the entire house first

you don't want to get paint on floors and cabinet s hard to work around guys who are painting some contractors like to paint the entire house in 2-3 days some guys don't mind working in one room while you are working on another most painters prefer to have the run of the house and paint alone

no distractions or other people to work around o doors are re-installed and painted

contractors can paint the doors and all the trim paint trim prior to install in the garage - easier / quicker

o PAINT o LABOR

1500 sq. ft. $1500 $1 a ft. just for labor

o MATERIALS 2000-2500 sq. ft. $2500

Step 5: INSTALL Putting Back Together

o door are installed o house is painted o plumbing and electrical is done

16 | P a g e

o get windows is before paint order windows getting them in

o vents o outlet covers replaced

fix outlets o kitchen and bath install

kitchens $100 a cabinet

basic oak RTA cabinets

standard sounds cheap Ready to assemble 30 in

more expensive houses 42' cabinets all the way to the ceiling cabinets and countertops

o RUSS tops bottoms

o counter tops material laminate formica $full kitchen

4 pieces $60 each $250 for full kitchen

o premade home depot Lowes

Corian less than $50 a sq. ft. fake granite

granite $50 - $80 a ft. special $40 a foot

o backsplash then backsplash

$4 - $8 4 inch tiles

17 | P a g e

by sq. ft. $4 - $8

o medium priced o sink cut out of countertops and installed

hook up plumbing make sure it works o flooring

ceramic tile $1.5 a ft. + 12 x 12 18 x 18 1.70

LOWES stick vinyl tiles

1 - $1.20 per ft. look for discounted tiles usually not as nice looking

o appliances go in last when it’s ready to stage in week 6 stainless steel scratch and dent craigslist

o baths new tub do this along with plumbing in week 2 do drywall in bathroom after tub in week 2

$300 more labor

what s behind the tub ?? OR save the tub - usually only in OHIO

tub and tile epoxy sand it down spray application or roll on

tub and tile resurfaced surround installed

$100- $300 flooring in first so you can set vanity and toilet

o 12 inch vinyl tile o $1 each

ceramic o $1.50 a - $3.50 a tile

vanity and toilet installed vanity - $50 - $250

toilet

18 | P a g e

$90 - $250 mirror

$20 - $100

STEP 6: FLOORING AND FINAL TOUCHES flooring

o do this last b/c you are walking on it carpet appliances pressure washing gutters

o replacing gutters o can do at any time depending on weather

roof o finish

landscaping o $1,000 total

$200 on plants $100- $150 on mulch plus labor

windows o depending on how fast they are shipped

MISC week final touches

STEP 7: PROPERTY LAUNCH staging vacuum pictures MLS prepare for property launch

o prepare marketing See Module 9

o property launch o Sunday 2-4

BOOK o contractor estimate books

search on Google iBook’s

o difference between "MEANS BOOK"o price we pay versus retail price

finding contractors o price break

19 | P a g e

o nights weekends o craigslist o tons of calls

lots of junk calls o provide resume

1 out of 10 is a decent fit even the 1 is not perfect

o weeks if not months pay starts low

o JOHN / CHRIS / found at a rehab he was finishing stuff for bank

o Chris craigslist

o Jeremy friend of friend

o randy craigslist

o act ignorant and see what they tell me o what do you charge o always ask for a resume

send me marks resumes o interview questions

GET FROM MARK? o resume first

experience phone interview will you take $10 an hour?? what are they willing to take before we meet

o then honesty o references o meet me at this house we are working on

always say you don't need work I’m looking to line people up I have projects coming online don't tell someone you need them clean cut enough well spoken

o if they check out let’s start tomorrow everyone gets paid on 1099

o checks doesn't 1099 anyone

20 | P a g e

most important are they honest

o GET FROM MARK ads resumes interview questions too many ideas is bad news over time over budget too many ideas too hard to get rid of

21 | P a g e