budget aligns with your overall investment strategy. This way, you ensure the property is appealing to your end buyer or renter and that you can optimize yield. 3 Is there value in highlighting existing character? Sometimes new isn’t always better. The property you are renovating may have qualities that are worth maintaining and making a focal point. Not only can this save costs, but it can also retain integrity and show your attention to detail. For example, original exposed brick has become quite popular. As an article in The Independent notes, it shows the owner “has their finger on the design pulse.” As an investor, leaving exposed brick as is not only attracts would-be buyers and renters, but also saves you money on your renovations. KEYS TO EFFECTIVELY EXECUTINGARENOVATION PROJECT As Michael Yardney, a leading property investment advisor, writes, “a lack of strategy and poor handling of finances are primary reasons real
renovation timelines to account for unexpected issues. • Itemize different aspects of your renovations and put in specs (the type of flooring, lighting, molding, etc.) Additionally, hiring a professional designer may help you navigate the process and reduce your workload. To make renovations go more seamlessly, consider a contractor- designer package (aka a “design- build” contract). This will unify the project and ensure a single point of responsibility, making it easier for you to stick to your budget and schedule. Having that design eye will help during renovations as well. From coloration to floor plans to room remodels, a lot goes into interior design. When designers detail exact plans and finishes to contractors upfront, your contractors will be able to move more quickly through their renovations. They can order materials right away, as they don’t have to wait for your decisions.
estate investors fail.” That should motivate you to prioritize project planning and finances. Renovation costs can add up quickly, so create a solid plan in advance and stick to that plan as closely as possible. Your success depends heavily on your discipline, the selection and capabilities of your partners, and how you manage your team. Poor management can lead to making the wrong renovations and hiring the wrong contractors. Since project managers and contractors can be your biggest asset or liability, you must vet them thoroughly by looking at their experience and reliability. Also, select them according to the level of work you want done. If you invest in affordable multifamily housing, hire contractors who have a history of success in the multifamily space. If you are flipping a mansion, hire contractors who have experience with luxury properties. When working with contractors, you should also: • Write concise, carefully worded contracts that outline responsibilities. • Build some flexibility into
PLANACCORDINGLYWHEN FINANCING RENOVATIONS First, make sure you are
thinkrealty . com | 57
Made with FlippingBook Online newsletter