DESIGN
KEY ELEMENTS
The 4 Essential Elements of a Successful Real Estate Project “PREP” IS THE KEY TO GETTING THE JOB DONE RIGHT.
by Tom Olson
hen most people think about rehabbing a property, they think
failure of a real estate rehab project. You can easily remember them by using the mnemonic device “PREP.”
IMPLEMENTATION TIP Specifically ask yourself: “Why am I doing this rehab?” Your answer should guide your decisions throughout the design and budgeting processes. For example, when rehabbing‑to‑rent, investors should select materials that are attractive and durable over materials that are “trending.” This does not mean the investor will forego design entirely. It does mean the selection process will involve identifying construction materials that attract high-quality tenants while allowing the property to withstand the wear-and-tear associated with renters.
W
in terms of two main concepts: 1. How much money they will make on the sale or generate in rent. 2. How amazing the “after” pictures will look in their social media feed and other promotional materials. The focus on these two things dominates the real estate investing industry to the detriment of real estate investors and their bottom lines. The truth is, there are four things, not two, that play an essen- tial role in the ultimate success or
ELEMENT #1: PURPOSE The great news for most investors is they already incorporate purpose into their process, to some degree. After all, when an investor acquires a property, they are usually thinking about the purpose of that property. Perhaps they will use it to generate a one-time payoff as a fix-and-flip deal, or perhaps they plan to rent the prop- erty as a short- or long-term rental. Knowing the purpose of the project is essential to generating long-term, positive returns from that asset.
Before
After
Getting your “PREP” right will help you make decisions about everything from curb appeal to color scheme.
24 | think realty magazine :: may – june 2022
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