PDA

View Full Version : 15 Golden Reno Business Rules


Sunstone
04-12-2002, 12:16 AM
Dear guys,

This is Robert Irwins "15 Golden Rules for Finding, Buying and Fixing Properties". (Reno Business Rules)

Cheers,

Sunstone.


15 Golden Reno Business Rules

1) Never Overpay.
Better to lose five "maybe" good deals, than to purchase one bad one.

2) Buy the highest value fixer you can find.
It won't cost much more to fix-up a high-end than a lower-priced house, but you’ll have a bigger budget to work with and more profit when you resell.

3) “Farm” nearby neighbourhoods.
Let owners of potential fixers know you’re looking. When they decide to sell, they’ll call you first to avoid paying agent commissions.

4) Mine broker listing for overlooked properties.
Look for houses that haven’t sold for a long time and that have poor “curb appeal,” those that most buyers shun.

5) Make offers to lenders. (Not as applicable in Aust)
Get them to sell you their REO’s –foreclosed properties that they want to get off their books.

6) Work the foreclosures
Get to homeowners before the lenders take over.

7) Avoid toxic properties
Beware of properties with serious lead, asbestos, or other environmental problems.

8) Put together a team of experts
Get electricians, plumbers, agents, loan brokers, and others working with you.

9) Make successful low-ball offers
Learn the techniques that will motivate sellers to see things realistically.

10) Get complete financing
Arrange for mortgages and short-term loans in advance of need.

11) Get sellers to finance your deal
You don’t need to put up your cash and the sellers keeps more money from the sale.

12) Put in your own seed money.
Never appear needy to anyone with whom you deal.

13) Learn to “guesstimate.”
Beat out your competition for the lowest-priced properties by being able to correctly estimate fix-up costs on the fly.

14) Know the difference between cosmetic and serious problems.
Never think a little paint and plaster will fix a broken foundation.

15) Move up to apartment and commercial buildings.
Learn to fix bigger projects for bigger profits.

Ross Sneddon
04-12-2002, 08:44 AM
Hi Sunstone

I recently read Robert Irwin's book. He is from the USA, California gets plenty of mention, but I foulnd his straight forward approach fits into Australia in almost every case.

A good read, good advice

Regards

Ross

Kevmeister
04-12-2002, 10:05 AM
Thanks Sunstone, another "tidbit" filed away in my electonic property investing file.

Kevin.

Luke
04-12-2002, 10:51 AM
Originally posted by Kevmeister
Thanks Sunstone, another "tidbit" filed away in my electonic property investing file.

Kevin.

Offtopic I know, but how do you store and access these sorts of information Kevin?
Can anyone reccomend a program?
Luke

Jas
04-12-2002, 02:21 PM
Originally posted by Sunstone
Dear guys,

This is Robert Irwins "15 Golden Rules for Finding, Buying and Fixing Properties". (Reno Business Rules)


(16) It'll cost more than you think

Jas

Macca
04-12-2002, 08:53 PM
#17: It will take twice as long as you think

Macca :)

watto
04-12-2002, 09:03 PM
# 18 Every little job will create 3 more jobs......



cheers
watto

Luke
04-12-2002, 09:50 PM
# 19 There's always one more trip to Bunnings required :)

Luke

Sunstone
04-12-2002, 11:00 PM
Dear guys,

Great add on rules.

Keep them coming.

#20 Your wife isn't THAT keen on painting.

Cheers,

Sunstone.

Owen
05-12-2002, 09:54 AM
#20a Your wife is NO GOOD at painting....

Aceyducey
05-12-2002, 10:15 AM
#20b Your husband is even worse at painting, but thinks he's better at it

Kevmeister
05-12-2002, 11:05 AM
Originally posted by Luke
Offtopic I know, but how do you store and access these sorts of information Kevin?
Nothing that fancy I'm afraid: just a sub-directory on my computer where I save files to. I don't have such an enormous collection yet that I don't know, or can't see at a glance what's there.

Ross Sneddon
05-12-2002, 12:12 PM
# 21 Husband has taken on too much and needs wife's labours

investor
06-12-2002, 12:09 AM
#22 Work an 8 hour shift go to the IP and paint for another 8 hours come home dead tired and can't " jiggy jiggy "

GlennM
06-12-2002, 01:00 PM
#23 Ensure you become a "handy person" as Tradespeople rarely turn up for quotes

Sunstone
06-12-2002, 11:10 PM
#24 Ensure you have a late penalty clause in your agreements with tradesmen as this will provide an incentive to complete a project on time. (Or at least reduce the amount they are late by.)

natmarie73
09-12-2002, 02:09 PM
#25 - Leave exposed brick walls exposed....or pay someone to render the bloody thing BEFORE you start painting.

Jacque
09-12-2002, 10:02 PM
#26 Work on the following skills before you renovate:
Patience
Ignorance of hunger pains
Answering your mobile with wet hands
Ignorance of sleep needs
Ignorance of pain in back/neck/wrists/shoulders
Returns and Refunds negotiating at Bunnings
Night painting

geoffw
09-12-2002, 10:06 PM
Jacque,

I like it.

But you forgot the bit about ignorance of the knowledge of spouse and/or children during a reno (unless the aforesaid are actually enlisted in the reno word)

Jas
10-12-2002, 10:11 AM
[Originally posted by Jacque
#26 Work on the following skills before you renovate:


I think another way of putting this one is:-
#26 Work on the following skills as you renovate

;)

Jas

Mr Ed
27-12-2002, 03:40 PM
#27 Always measure twice & cut once!!!

Ed.

Sunstone
27-12-2002, 07:18 PM
#28 Make sure every $1.00 invested brings $1.50+ worth of added value. (1=1 allows no room for error or direct profit.)

michaelg
28-12-2002, 12:48 PM
#29 Your perfect schedule should always factor;

a) Extra time waiting for new stock that the supplier just ran out of.
b) Extra time waiting for new stock to be replaced by the correct stock.
c) Extra time waiting for more correct stock (that you forgot to factor in) to be purchased.

#30 Prepare to buy a tool you need you'll never use.

#31 Never assume that something that looks easy to do, will be reflected in the price.

#32 Never assume that other people have free time the same time you do.

#33 Never assume the title "professional" applies to those you hire (it just means they get paid to learn from their mistakes on your time and money).

Just a thought
Michael G

Mr Ed
28-12-2002, 02:26 PM
Just to add to your #30 michaelg


#30 Prepare to buy a tool you need you'll never use.

#30a. Having to buy another specialist tool because it’s to far home to get the tool you forgot. (I’ve 3 pop rivet guns! and god knows how many string line levels)

and #34. Always get that extra bag of rapid set you will need it

Ed

Quarol
08-02-2005, 12:10 AM
#35

try not to laugh out loud when the tradesperson rubs their chin and says, "it's going to cost you, lady" :D (especially if you are a boy :confused: )

willair
08-02-2005, 10:21 AM
36 my lucky number.
just is just a simple one ,always when floor sanding,make sure the handle
is bolted to the machine,the last time i used a sanding machine on a lagre floor
the handle let go and the machine flew into the 3000 by 2400 plate glass window
and down the side of the building,just another day in the reno game..\
37.
always have cold coopers beer in the eski..
good luck
willair..
good luck
willair.

Kiwi Investor
08-02-2005, 10:38 AM
#24 Due to points 1-23 the whole project becomes posteriorities ( I think this is the correct context for this word, apologies if not!!)

'Don't play by the rules, invent your own game and set your own rules'

:D