3 Rehab Prep Musts To Save Time & Cut Costs
Q: Gerald, I just bought my first rehab. Do you have any tips to help me? Ernie, East Rutherford, NJ
A: Every day you own the property that isn’t generating income, it is costing you money, specifically holding costs like interest, property taxes, insurance, utilities etc. Here are 3 rehab preparation tips that’ll save you time and cut costs:
1. Before you buy, get contractors lined up with a solid contractor agreement with payments tied to completion of milestones so they can begin work immediately after you close.
2. Apply for construction permits and utility service early-before the rehab starts if possible. Be very nice to gatekeepers that can speed up or delay your rehab project including people who work in building department, issue permits and inspectors.
3. Make sure you have a generator available before you close to buy a rehab property so you can immediately start doing renovation even if the power is not yet turned on.
Thanks for your question, Ernie. For more real estate information and tips visit my blog at geraldlucas.com.