So you want to be a rehabber... Well, I can't blame you.
I'm a sold-out believer that real estate is the fastest, smartest way to build serious wealth in a hurry in today's economy. Like me, you probably already know that real estate has made more millionaires than any other financial strategy. And I can tell you first handâ€¦ buying, rehabbing, and selling houses to build financial freedom in your life IS a legitimate option for intelligent investors who want to create wealth quickly and ditch the 401k roller coaster ride.
But (and you need to hear this) REHABBING ISN'T THE ONLY OPTION. In fact, I DON'T EVEN THINK IT'S THE BEST OPTION.
Rehabbing may yield some very respectable paycheck. But it's not all a bed of roses. Over the years, I've done dozens and dozens of rehabs.
Allow me tell you what I've learned about rehabs that most people DON'T tell you.
- Rehabs almost always require at least $30,000 in improvements to make them ready for a retail market (that's if you're lucky).
- The rehab process is complex and usually requires finding and coordinating several specialized trades, all at the same time.
- Rehabs usually require at least a month's worth of work to get them ready to list.
- Rehabs usually take at least 90 days to sell, after being listed.
- Rehabs compete with every other retail home listed on the MLS.
- Rehabs are a pain in the @$$ to create systems for, because every one is different.
- When the dust settles, my profit check is almost always less than I expected. (CHECK OUT WHY BELOW)
REALITY CHECK â€” Here are the costs and losses many wanna-be rehabbers forget to account for:
- Most rehabs sell for 95% of asking price. That's a $5,000 hit, if you're selling a $100,000 home!
- Realtor commissions are going to cost you 6% or more. On a $100,000 home, that's another 6 grand, GONE.
- Closing costs... there goes another $500.
- Lender costs vary depending on your source, but plan on paying at least $3,000 if you're using a private lender.
Note: If you're using hard money, the fees and interest could easily exceed $10,000.
SO LET'S JUST SUMMARIZE HERE...
On a $100,000 home, you'd pay out $14,500 in fees, interests, price reductions, and closing costs. Assuming you bought the house for $50,000 and put $20,000 into it (I know... I am being optimistic here), that means that you've got $70,000 in purchase and rehab together. Combine that with the $14,500 you're going to pay at the sale, AND YOU'RE ONLY MAKING $15,500 DOLLARS!
And did I mention that it took at least 4 months from purchase to paycheck?
I don't know about you, but to me, making only $15,000 in 4 months... IT'S JUST NOT WORTH IT!
THAT'S WHY I BUILT A BETTER WAY...
It's called PREHABBING, a way of flipping houses that I've perfected that's faster, simpler, and more profitable than any exit strategy I've used in a long time.
Think of prehabbing as the happy middle ground between wholesaling a property and a full rehab. Prehabbing is simple. It's making minor cosmetic improvements (think rental ready) to a property and then putting that home back up onto the market 10%-15% below retail value. We never spend more than $10,000, and the work usually takes less than 2 weeks to complete.
And let me tell you... THESE THINGS SELL LIKE HOTCAKES. When I list a prehab, it's gone within a week. And multiple offers are the norm. The public is hungry for clean, fresh homes at an affordable price. Give them what they want, and you're bank account will be as fat as butter.
And here's a little secret, I make a little less money, per house, on a prehab than I do on a rehab. But I can do so many more prehabs in the time it takes to do a single rehab, that it doesn't even matter. My prehabs are a goldmine!
I WANT YOU TO CASH IN ON PREHABS TOO!
That's why I created...
It's a nothing-left-out course that explains, step-by-step, the exact systems I use to prehab my houses in minimum time, with minimum stress, and maximum profits.
Here's what I cover:
MODULE 1: Finding Prehabs (4 webinars)
- I'll show you every trick in the book for finding where you should be finding your prehabs, your best sources the fattest deals, and how I automate the entire process. You do not want to miss these webinars.
MODULE 2: Funding Prehabs (3 webinars)
- Not only will I show you how to stress test every one of your deals, so that you KNOW that you're going to make a profit, but I show you the 5 ways and 3 lender types we use to fund all of our prehabs - many times with none of our own money in play.
MODULE 3: Fixing Prehabs (6 webinars)
- This is where your money is made with prehabs... making a home beautiful AND affordable. I'll teach you how to make contractors march to the beat of your drum, the necessities of every prehab, how I stage these beauties, and much much more!
MODULE 4: Flipping Prehabs (4 webinars)
- If there is one thing I know how to teach, it's how to sell houses. Trust me, my prehabs do not sit around. I'll show you the online and offline tactics I use to get tons of traffic to every home I list. And I'll teach you the art form of great staging and getting buyers emotional, and ready to buy.
AND BECAUSE I'M NOT PLAYING AROUND ABOUT YOUR SUCCESS...
BONUSES INCLUDED IN THIS TRAINING:
- The Complete HUD Wholesaling training course. That's over 25 hours of training that has, literally, made my students millions
- 50 Buyer-grabbing Craigslist ads
- John's Facebook System and Ads. By the way, if you're not using Facebook right now, you're not serious about this business.
- The exact buyers list email I use to attract 40 buyers to a house in 15 minutes.
- The 4 paragraphs I use every time to get buyers eating out of my hands.
- Comprehensive training videos that will train your team on each of these bonus systems FOR YOU.
THE BOTTOM LINE:
For the investors who are ready to open their eyes to the realities of rehabbing, I WILL give you every tool you need to become a prehabbing master, guaranteed. I'm a prehabber for life, and once you start using this system, I know you will be too!