the budget to reflect any changes or unexpected costs incurred during the project. Seek professional advice or conduct a comparative market analysis to determine the property’s estimated value after the rehab. In summary, developing an accurate line-item rehab budget for a residential property is crucial to a successful and profitable rehab project. Following these steps, you can create a comprehensive and precise budget that aligns with your goals and budget constraints. With a well-planned budget, you can confidently embark on your residential property rehab journey and achieve the desired results. •
gaps or inaccuracies and help you make informed decisions about prioritizing repairs and allocating funds. Many people are reluctant to have this discussion because they are afraid to have their contractor add cost. Remember, trusting your contractor is one of the most important factors for your success!
align with the neighborhood’s standards and optimize the selling price.
JOHN V. SANTILLI
TRACK AND MANAGE EXPENSES
Digitizing and managing expenses is essential once the rehab project is underway. Create a system to log all expenditures, including receipts, invoices, and any additional costs that arise during the project. Keep a constant view of your budget and compare it to the actual costs of your project. Compare your actual expenses against the budgeted amounts regularly to ensure you stay within your financial plan. This will help you identify areas of overspending or potential savings opportunities. Consider using digital tools or spreadsheets to streamline expense tracking and maintain accurate records. Review the completed rehab work and assess its impact on the property’s value. If necessary, adjust
John V. Santilli is the chief revenue officer for RFG. He joined the company in July 2019 and is responsible for all opportunities connected to RFG, including expanding the company’s sales channels to maintain its position as a leader in rehab financing. Before joining RFG, Santilli had 25 years of lending and marketing executive leadership experience across multiple private and public marketing-dependent companies. He managed companies from startup to maturity, ranging from $2.5 million to more than $50 million in annual revenue. Santilli earned a master’s degree in management from the University of Pennsylvania and a bachelor’s degree in business administration with a concentration in marketing from Drexel University.
FINALIZE THE REHAB BUDGET
It is crucial to finalize the rehab budget and ensure it aligns with the property’s value. The goal is to create a budget that maximizes the property’s potential and allows for a profitable return on investment. Keep in mind that “build-to-sell” is different from “build-to-rent.” When building for rent, focus on durability and cost-effectiveness, avoiding unnecessary improvements. In contrast, building for sale should emphasize curb appeal and cosmetic features that
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