Embed Size (px)
Citation preview
MHCInvestor.com
TIPS, TRICKS AND TRAPS
Ph: 305 879-3776
Presented by:
Michael J. Power
www.MHC Investor.com
305-879-3776
Ft. Lauderdale, Florida
IN REHABBING AND REMODELING HOMES!
Michael Power, MHC Investor Services, LLC © 2014
MHCInvestor.com
Ph: 305 879-3776
Safe Harbor Statement:
This presentation contains strategies that have been developed & successfully used by Michael Power over the past 25 years. They are always being updated as the market shifts. Nothing being presented here today is “Theory”. These are the “hands on” tools and concepts I use myself every day & help others learn to apply.
Prior to implementing any presenter’s ideas, it is recommended that you consult with your business advisors, including but not limited to: Your Partners, Mentors, Financial Advisors, etc.
Michael Power, MHC Investor Services, LLC © 2014
MHCInvestor.com
Ph: 305 879-3776
Points We Will Cover During the 45 Minute Hour:
Who Am I and Why You Might Listen To Me
The Two Hidden Costs Of Remodeling Buying Supplies
The Home Becomes Vacant Finding Contractors vs. On-Site Workers
Cleaning Supplies and Tools Cleaning The Home
Stabilizing The New Resident At a Higher Rent
About MHC INVESTOR …..
Success and You!
Michael Power, MHC Investor Services, LLC © 2014
MHCInvestor.com
Ph: 305 879-3776
Michael Power
28 Years in MHCOwned 25 Communities
Purchased, rehabbed over 1,000 homes between 2003 and 2007
Rehabbed 70 Homes past 12 Mths
Michael Power, MHC Investor Services, LLC © 2014
Ph: 305 879-3776
The Two Hidden Costs Of Remodeling
1. Lost income due to homes sitting vacant $600/Mth x 3 = $ 1,800
- Neglect to inspect & prepare rehab estimate
- Looking for supposedly cheapest resource such as:
- An on-site maintenance person or other resident handiman
- Open ended time schedule – when you can/as you can
- Failure to execute !
1. Failing to address issues with the homes or vacant lot next to
the home being remodeled
- Adjacent homes, skirting, junk, clutter, etc, means longer
sales time, lower rent
New Resident prospects look out the windows and when the go in and out of the home. If their
potential new neighbors are allowed to live like pigs it will take you longer to rent or sell the home
and you will get less money.
“Tips, Tricks and Traps of Rehabbing Homes”
MHCInvestor.com
Michael Power, MHC Investor Services, LLC © 2014
MHCInvestor.com
Ph: 305 879-3776
“Tips, Tricks and Traps of Rehabbing Homes”
Buying Supplies – Time Is Money
- Standardize where you buy supplies
- Don’t run around to save a dollar
- Best bet – either Home Depot or Lowe’s, use one don’t run between the two
- Standardize what you buy
- Cleaners, gloves, brushes, paint, etc. Always buy same brand
- Buy the best contractor, thick paint and always use the same interior color on every
home – off white, very light beige and egg shell (one up from flat)
- Buy the Best quality paint and brushes will go on faster, cover better, cleanup better,
etc.
Michael Power, MHC Investor Services, LLC © 2014
MHCInvestor.com
Ph: 305 879-3776
“Tips, Tricks and Traps of Rehabbing Homes”
The Home Becomes Vacant
- 50% of our homes are rented before they are market ready
- People choose home by location in park; Front/back of community, trees
or not trees, color of siding, S/W / DW, etc.
- De-trash within 48 hours
- Inspect and prepare rehab estimate only after de-trashed
- Decide on replacing carpet or not. If yes, then pull out immediately & also
pull up all nails
- Light cleaning of house, sinks, tubs, showers, window sills, sweep clean and
then use blower to blow off ceiling, then walls and lastly floors
- Prepare sales sheet & determine rental rate on home
- Do quick estimate of costs
- Rehab the faster renting homes with lowest costs 1st
Michael Power, MHC Investor Services, LLC © 2014
MHCInvestor.com
Ph: 305 879-3776
“Tips, Tricks and Traps of Rehabbing Homes”
Michael Power, MHC Investor Services, LLC © 2014
Finding Contractors VS On Site Workers
- On – site tenant contractors take longer, do less quality work, when they
mess up then you pay for the additional labor & supplies to get it right
- How many homes you are remodeling per month determines whether you
hire and train workers as employees or go with outside contractor
- 4 plus homes per month equals potential employees
- 1 to 3 houses per month then use local mom & pop contractors
- 3 Major Components of Rehabbing Contractor Options
Option 1: Local MH rehab specialist – mom & pop (harder to find)
Option 2: Get 2 or 3 contractors based on specialties
Paint – great at prep work & works quickly
Flooring – carpet to replace, buy wider carpet or you will need pro
Handyman – carpentry, light electric, plumbing
MHCInvestor.com
Ph: 305 879-3776
“Tips, Tricks and Traps of Rehabbing Homes”Cleaning Supplies
- 2 Types of mops – rotating head mop from Bed Bath & Beyond and squeeze type mop
- Latex/Vinyl gloves
- Bounty paper towels – largest pack
- Don’t buy Rags in the Box & don’t use cloth rags
- Small brush and Large soft brush on pole (for brush floors before moping)
- Dirtex (spray type window, sink and counter cleaner - from Lowe’s, Sherwin Williams or online
- Bar Keepers Friend (like Ajax) this works far better
- Clorox brand bleach spray cleaner
- 3M scotch brite pads
- Large sponge with 3M pad on 1 side
- Large blower vac – blow off ceilings, walls, and floors after initial cleaning &
again before starting final cleaning or painting
- Large floor mats at both front and back doors so workers do not track in dirt
from the outside
Michael Power, MHC Investor Services, LLC © 2014
MHCInvestor.com
Ph: 305 879-3776
“Tips, Tricks and Traps of Rehabbing Homes”
Cleaning The Home
- This is the biggest bang for your buck
- Must be White Glove clean. Not hazy clean
- 8 – 12 work hours to clean properly, (forget the contractors and forget 3 Hours)
- Windows inside & out
- Window sills, light fixtures, remove every switch pate in the house, put them in
the sink and use cleaner & 3M pad
- Entry doors inside & out. Clean, fix and replace as necessary. No sign of
forced entry
- Sinks, toilets, showers, tubs, walls (splatters, finger prints, misc.), fridge,
stove, vents. All white glove clean or paint or replace
- Remove all floor vents, vacuum, hand clean, spray 50/50 bleach & water at
end of the day
- Calk, tape, seal as needed before replacing vent
- If replacing carpets spray urine stains with 50/50 bleach & water at end of
day and if necessary paint sections with “Kills It”
- Masking urine stains doesn’t work. Destroy smell and destroy stains! Use shellac on floors if necessary
Michael Power, MHC Investor Services, LLC © 2014
MHCInvestor.com
Ph: 305 879-3776
“Tips, Tricks and Traps of Rehabbing Homes”Stabilizing The New Resident and for Higher Rent
- Shower curtains
- Toilet paper on roller – each bathroom
- Unopened new roll of Bounty paper towel on kitchen counter
- Floor mats – front & back steps/decks
- High quality prep work on dry wall before Painting
- Appropriate wattage light bulb in every socket
- Test every wall plug & switch, fastened securely
- Floor vents - new or looks new and every one in home
- Calk, seal, clean each vent
- New blinds throughout, don’t analyze. Just do it
- Fragrance in each bathroom and kitchen
- Towel racks in bathrooms
- Replace flappers in each toilet – don’t inspect, replace
- Pour 5 gal bucket of water in each sink, shower & toilet to make sure flowing properly
- Clean coils on outside AC units
- Most important: look from inside out of each window at adjacent home. Any Negatives Fix Those also
Michael Power, MHC Investor Services, LLC © 2014
MHCInvestor.com
Ph: 305 879-3776
To contact me, go to our web site click on “Let’s Talk” and enter your contact info and questions or interests.
or email at: [email protected]
www.MHCinvestor.com
MHC Investor along with our investor fund partners is buying MH Communities Nationwide either cash to new mortgages or seller financing.
Michael Power, MHC Investor Services, LLC © 2014
Ph: 305 879-3776
MHCInvestor.com
SUCCESS Today Is About Active Management and Using Systems to Standardize All Management Aspects!
…. And the Ability To Execute on your Plan.
“A great idea poorly executed always loses to a poor idea well executed.”
Michael Power, MHC Investor Services, LLC © 2014
Success Is You ! …… So, Just Do It !
Ph: 305 879-3776
MHCInvestor.com
Presented by:
Michael J. Power
www.MHC Investor.com
305-879-3776
Ft. Lauderdale, Florida
Michael Power, MHC Investor Services, LLC © 2014
