Time Counts

Pick up the speed. After the first jump comes, the longest set of mogul’s begin. During this time contender’s focus on keeping their knees close together and increasing the speed without losing control. This is a difficult balance of control and lack of control.

When you are in the middle of your rehab you need to pick up the speed. You also need to keep things under control. Time is a Gold medal when it comes to Mogul Free Style skiing just like Time is Money when it comes to a Rehab and Retail Investment. Too many investors act like they have all the time in the world. You should have guys on top of guys in the home working. I can have an entire home completed in 30 days. Our average basic rehab takes 2 weeks. Our more detailed takes 30 days and on some occasions 45 days. Every day costs you money.

We set a completion deadline for all of our repair guys from carpet to paint and everything in-between. I like to give my repair guys a bonus for getting properties done before schedule. So we all agree on the completion deadline. I then look at the cost of my hard money per day. I then give 25% of my per day cost as a bonus if 100% of the property is completed in that time frame. And I mean 100% of my contracts say no leaky faucets, no loose screws, no door handles or cover plates off, 100% complete. In model home ready condition. If they go over the deadline they pay 50% of my per day hard money cost. For example if the per day hard money cost is $100. Then I give them a $25 per day bonus for early completion and a $50 per day penalty for not getting the work done. Why is there a difference? Because we all agreed on what the completion deadline can be. So anything before that is really a gift to the workers. Anything after that is really a cost to you as the investor.

Pick up the speed, time will cost you Gold in your pocket just like the lack of speed can cost a Mogul Freestyle skier a gold medal.

Choose your Trick Wisely

Air only counts for 25% of your score. So if you do too big of a trick and don’t land it then you lose. It is really that simple, and really that harsh. However if you don’t do a decent trick you can lose it as well. Choosing the right trick based upon your situation, the conditions, what the other competitors are doing is essential to being a successful Mogul Free Style Skier.

We see too many real estate investors fixing up homes as if they want to live in the home. Meaning they make changes to the home as if they are the owner. Making things to personalised, doing dark accent walls that some people may like and others may hate. Or doing cabinet and counter top choices that some people will love and others will hate.

You need to pick your tricks wisely. When completing a rehab and retail we frequently see too many people doing too much to the property. When you put a property under contract go look at some of the homes that are currently on the market on the same street. With those homes you will know if Granite counter tops are standard in the area or if you can just use laminate. You will know if you have to get upgraded appliances or if lower end appliances or even used appliances will work and many many more. I recommend that you do what is standard in the area and then I like to throw in a little something extra. For example if every home in the area has vinyl floors I like to do tile in the kitchen, or maybe do nicer carpet than everything else in the area. So for each house I recommend that you do something to bring some sizzle than all the other homes.

The Key is to have your home the nicest. I think this is accomplished by having new carpet, new paint, and everything clean and working and then to add a little sizzle, one thing that you do extra to spice up the home. Choose your tricks wisely; if you over do it you lose, if you don’t do enough you lose. Knowing the other homes for sale will tell you what you are competing with. If you know what tricks your competitors are throwing in you will know what type of tricks you need to do to win the Gold!

Find Your Line!

Continuing on our Olympics of Real Estate Investing. When a Mogul contender heads down the course they are constantly having to choose a line to follow. This is impacted by visual conditions sun, wind, snow, lighting at nights. With each bump they have to be looking forward to what the next line is.

We find so many real estate investors that don’t have a plan before they get started with the property. They find a property that may even be a good deal but they don’t find their line. We have even seen real estate investors that have found a good deal that they really could of made profit with but they end up breaking even or even losing money. Why you ask? Because they never found their line.

When you are doing a rehab and retail before you are done with your due diligence, or even before you make an offer on the property you need to know A. Exactly what work you are going to do to the property B. Exactly how much the work is going to cost C. Who is going to be doing the work D. How long it will take to get the work done to the property.

No Olympic Mogul ski is going to Guess on their line. They are going to have a defined line for the first few turns before they even leave the gate. Don’t guess on repair costs, even if you have experience with repairs get the guys out that are going to be doing the work. Get firm prices from everyone that will be involved. I like to do this once I get a property under contract. We typically ask for a 48 hour time to inspect the property. During this time we set a meeting for every person that will be doing work on the property to meet at the same time. So the Flooring guy, the cabinet guy, the painter, the handyman, electrican or plumber if needed all show up at the house and look at everything and give us a price on the spot. This cuts down on back and forth of conversations and makes everything efficient. The bird dogger we buy properties from likes this as well because they know we don’t drag out the situation forever, they know that in 24 hours or 48 at most my earnest money goes hard.

Find your line by knowing what your cost will be before you leave the gate.