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Module 8: Mindmap Conversion to Word Document
8TH COACHING CALL
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new locks
o $15 each
o 2 doors
 $30
MAJOR SYSTEMS = $10,950
o order dumpster
 $450 a 1 40 yd. dumpster
o Windows
 $2,000
 20 windows
 $100 each
o Siding
 Keep and wash and paint
 $1 ft.
 labor
 $1500
 1500 sq. ft.
o Paint
 5 gallon bucket
 Roll on
 $120
 7 gallons
 sprayer $200
o Gutters
 $300
 materials
 $800
 labor
o Doors
 $500
 10 doors
 $50
o Roof
 $4,000
o basic landscaping
 $1,000
 $200 mulch
 $500 plants
 2-3 days
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o
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DEMO
 LABOR
o
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o
SUMMARY
o
$1,000 Plumber
$1,000 Electrical
$10-$15 a hr.
cheap workers
want them to know what’s going on
 some minor construction experience
2 guys
 40 hrs.
 5 days
 $12.50 an hour
 $1,000
drywall phase
 Materials are very cheap
 A lot of labor Here
 2 guys
 12.50 an hour
 40 hours
 3 weeks
o $3,000
PAINT
 LABOR
 1500 sq. ft.
 $1500
 $1 a ft. just for labor
 2000-2500 sq. ft.
 $2500
MATERIALS
 $15 - $25 per gallon
 (2) 5 gallon buckets paint
 $90 for 5 gallon
 5 gallon ceiling paint
 $75
 One Coat of Paint
 Kills Paint
 $250 total
$1750
 kitchen
 15 cabinets
 $100
 $1500
 Standard Oak Neutral Cabinet
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RTA cabinets
o "ready to assemble" cabinets
 King of Prussia, PA
countertops
 $50 per piece
 4 pieces
 $200 - $250
o pre-made
 Big Box Supply
 Middle Of Road
backsplash
 20 ft.
 $5
 $100 - $200
 4 x 4 tumbled marble
o $3.99 a sq. ft.
flooring
 400 sq. ft.
o $1.25
o $500 flooring
o vinyl stick tile
o $1 - $1.20 a foot
 big box stores
 Lowes, HD, Menards
appliances
 $2500
 stainless steel set
 labor
o 1500
bathroom
 half bath
o $300
 full bath
o $1000
 does not include the tub
 vanity lights
o $30 - $50
 on clearance
 Labor
o $750
washer / dryer
 $500
o resell store
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wouldn't know they are used
look for ads and specials
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o
Flooring house
 carpet $1.5 a ft.
 600 sq. ft.
o $1200 w/ tax
 laminate hardwood
o $1 a ft.
o 600 sq. ft.
 $700 w / tax
 LABOR
o 1500
 property launch
 $100 ethical bribe
 $600
 Jason
 $1000
o total home bonus package
 $1,800 - $2,000
o Builders Risk Policies
 American Modern Ins
o $100 a month or less
 AFFINITY GROUP
 KANSAS CITY
o Pay Up front for Full year policy
o theft
o dwelling
o burst pipes are not covered
 shut the water off at the main
 concerned about water leaks
 flush mount lights
 buy bulk
 $10 a light
 ceiling fan
 $50 - $75 fan with lights
SUMMARY
 $30,930
 60/ 40 split
 $14,000 LABOR
 $16,000 MATERIALS
 MOLD AND WATER HOUSES ARE THE BEST HOUSES!!!!
 basement
 75% of the time it’s a sump pump issue
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the dumb banks turn off electricity and turns off sump pump
MANAGING MULTIPLE REHAB PROJECTS
 TEAM
o Project Managers
 Chris
 Russ
 John
o Checking on Projects
 Planning
o finding contractors
 price break
 nights weekends
 craigslist
 tons of calls
 lots of junk calls
 provide resume
 1 out of 10 is a decent fit
 even the 1 is not perfect
 weeks if not months
 Sections
 general labor section under "JOBS"
 real estate services
 labor / move under "SERVICES"
 pay starts low
o $12 - $15 - $18 an hour
 John
 found at a rehab
 he was finishing stuff for bank
 Chris
 craigslist
 Jeremy
 friend of friend
 been with us for a year
 Randy
 craigslist
 http://akroncanton.craigslist.org/lab/3839080556.html
 hated chasing money
 act ignorant and see what they tell me
 what do you charge
 always ask for a resume
 send me marks resumes
 interview questions
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GET FROM MARK?
resume first
shocked by how many guys actually have a resume
o a lot of guys have a resume
experience
 look for experience
 at least 2 years construction background
phone interview
 most important
 are they honest?
 will you take $10 an hour??
 what are they willing to take before we meet
 I’m a small construction company looking for help
 I have a small project going on and I need some help
 have you ever done a rehab vs. a remodel??
 references
meet me at this house we are working on
 what would you do in here?
 what kind of money are they used to using and spending?
 are they showing of?
 a lot of open ended questions?
 what are you used to being paid?
 too many ideas is bad news
 over time
 over budget
 too hard to get rid of
Key Statements
 always say you don't need work
 I’m looking to line people up
 I have projects coming online
 always say you don't need work
 don't tell someone you need them
 clean cut enough
 well spoken
o if they check out
 "let’s start tomorrow"
everyone gets paid on 1099
 checks
 doesn't 1099 anyone
 GET FROM MARK
ads
resumes
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interview questions
add to members site
Rehab Price Guide.docx
NOTE
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only difference between 4 weeks and 8 weeks and 12 weeks is the size of the house and the extent of
the work
STEP 1: DEMO (Takes 1-2 weeks or less)
 DEMO
 securing the house
o new locks
o new lock set
 double $15
o turn and dead bolt
o single
 $10
o on all doors
o easy access in and out
o sledge hammer
 bust the lock out
o new lock set
 securing the utilities
o switch over gas and electric
 utilities company wants the HUD 1
 order dumpster
o one trailer load
 20 yard
 rarely use
 $300 - $350
 30 yard
 20-30k budget
 $400
 40 yd.
 30k - 40k budget
 $450
o includes drop off and pick up
o typically for 2 weeks
o some companies charge $5 - 10 Dollars a day
 after 7 days
o (2) 40 yd. dumpsters
 40k+
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o
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what happens when the dumpsters gone
 haul away
 yourself
 order another dumpster
 drop it off at a trash dump
o ESTES HAULING
 big company
 local to Cleveland / Akron
 call today
 have one tomorrow
 put it where you need it
o Landscaping trailers
 if less than 20yrds
 take to dump
demo everything
o demo kitchen
 remove all cabinets, countertops, appliances, walls etc.
 collapse cabinets
 crush cabinets
o saves space
o demo baths
 save tub and surround if possible
 reglaze it
 saves labor
 comes with warranty
 $150 to replace
 you are saving the labor costs
o remove all old fixtures, sinks, toilets, showers, walls, etc.
 basic white toilet
 $100
 vanities and sinks
 $100- $500
o demo tile in bathroom
 skim and smooth
 or cut drywall out
 replace
 or paneling
 does it add character
 repaint
 usually take tile off without demo'ing the walls
 then skim and patch the walls
o take out all trash
 order dumpster
 put all trash in garage
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o
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baseboards
 keep trim and paint if possible
 especially in older houses
 adds character
o PRO - PACKS
 120 ft. of baseboard for $50
 minimal cost for big impact
o all doors off
 doors
 habitat for humanity will take old doors and frames
 casing
o PRO - PACKS
 $25 for 100 ft. of it
 save what you can
o windows
 will stay at beginning until order comes in
 measure for ordering
 almost always we do
o roof
 almost always do
o siding
 usually keep old siding and paint
 almost never do
o garage doors
 50/50 save them and use
o hardwood floors
 anything you save move to garage or POD
LABOR
o $10-$15 a hr.
o cheap workers
o want them to know what’s going on
o some minor construction experience
Make a list of what you are keeping
o tear out everything else
o have stuff to keep
o what do we keep
o windows
 wood windows we throw away
 save if it has a lot of character
 save the sashes
 put in new rope and weights
 are they new vinyl
 15 years or less we keep
 40 x 60
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equals 100 inches
 $1 an inch
new windows
LANG EXTERIORS
 Phone number
o 773-737-4500
 ship anywhere
 we do measuring
 we send to them
 they proof
measurements
orders
 number of windows
 cost
order
 fax and email
 can be done in one day
they order and start
2-4 weeks to ship and arrive
 if they are slow
1 week manufacturing
 5 to 7 business days
1 week shipping
 if they are busy
2 weeks
$100 buy new
 buy and ship
 we install
$200 or less bought and installed is a steal
 $50 a window to install for labor
if a window seal is broke
 create a new one
 they can be saved and put back together
cheaper to order a whole new window
 $100 to fix
 $100 buy new
not include install
 take 30 minutes per window
 $50 a window
$180 new window includes install
 double pane
 double hung
 $200 or less bought and installed is a steal
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o
o
sometimes quicker to repair
siding
 keep siding
 paint siding
 aluminum siding from 70's
 scrape and paint
o save
 $10,000 new vinyl
 cheaper siding
 $50 a sq. ft.
 medium siding
 $80 a sq. ft.
 80% of a house is siding
 rule of thumb
 measure the exterior and subtract 20%
roof
 pressure wash the dark spots of a roof
 if you can see a lot of buckling
 price per square foot
 $100 in materials
 $75
 10ft x 10ft
 "a square"
o 3 bundles make up a sq.
o $25 per bundle
o $75 for shingles
 at a supply house
 Menard's SPECIAL
 $21 a bundle
 $63 a sq. for shingles
 $25 a sq. for felt
 ice guard
 labor
 $100 a sq. ft.
 20 sq. ft. roof
 lower to medium sized
o $2000
o labor
o $2000 materials
o 4-5 grand
 use 3 dimensional shingles
 roof top delivery
 get it if you can
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o
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gutters
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doors
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38 Edgewood
 roof we are saving
 15 to 20 years old
 no leaks that we know of
 easier to take some back and replace individual shingles instead of
replacing the whole roof
3954 Homestead
 Ranch
 30 deep x 70 wide
 2100 total
o divide by 100
o 21 squares
o 100 a sq. in materials
power washed and painted
no dents or holes
not expensive
buy basic white gutters
all new gutters
 1500 sq. ft. ranch
o $500 - $1500
 2500 sq. ft. colonial
o $1500 - $2k
ladders
scaffolding
any handyman can buy gutters
cut them and install them
rarely save
sometimes we save wood doors b/c they have more character
2284 bailey in Cuyahoga falls we saved the doors
$50 apiece
interior
 white 6 panel
 pre-hung
 Menards $39
 Lowe's will price match
 $100 - $200 a piece
Exterior
 stuff to save
 extra materials
 sinks
 newer
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put back in
o new $100
cabinets can be painted
 take out and paint and put back in
wood doors
 sand down and paint white
vents
 wipe down and spray paint
 save vents in rentals
 sometimes you can save
 new vents
 $9
cut grass
basic landscaping
so it doesn't look vacant anymore
Step 2: TEST AND REPAIR UTILITIES (takes 1-2 weeks or less)
 test all utilities
o water lines
 plumbing
 get water on and then run the lines
 make sure the water is working
 check drains
o cheap for materials
o work is an pain the butt
 Copper
 has to be perfect
 its solid
 has to be soldered with gas and flames
 most expensive
 will add some value to your house
 worth it in a higher end home
 PVC
 has some bend in it
 plastic
 anyone can learn to glue
 like a maze
 less expensive
o 1/2 to 3/4 of the cost of copper
 PEX
 bendable PVC
 comes in loops of piping
 Crimper: Tool
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o
water line
 ring on it
o comes in rolls
o red blue
o cold hot
 drain line and more expensive
o 3-4 inch
 supply
 tie offs
o tie offs 1/2 inch
o 1/2 inch
 drain
o 1/2 inch to 4 inch
 water lines are less
o 1/2 inch or 3/4
o comes out of tank
 hire plumber
 $50 an hour or less is good
 $60 -$75 an hour
o more expensive side
electrical
 testers you buy
 each outlets
 check all breakers
 tripping not working
 need changed out??
 label each breaker in panel
o which breakers are running each room and label
 once all breakers are on
o make sure all outlets are hot and they work
o not working
 go into the wall
 see if outlets is bad
 make sure wire coming into the wall is hot
 check for main break in wall
 rarely happens
 check for wires that are not connected
 in room in upstairs
 if there’s need to demo walls or try to jump on electrical
first and plumbing
 outlets
 electrical panel
 $100
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comes with a few breakers
breakers
o to fill the box
o cheapest breakers are $4
o higher amp breakers are $8
o $100 for an additional 15 breakers
o on 3/4 of our houses we put new panel in
 Bad Brands
o Federal Pacific
 labor
o LABOR install panel and breakers = $150
o re-wire a whole house = $2,000 - $3,000
o HIRE AN ELECTRICIAN
 $30 an hour
 low end
 $50 an hour
 going rate
 pay for their time and materials at cost
 $60 -$75 an hour
o high end
 Bruce Electrical and Plumbing
 $4000
 whole house
Step 3: PATCH, SKIM, MUD, TAPE - Takes 2-8 weeks
 could take 2 days or 8 weeks depending on the house and extent of the work
o putting everything back together
o patch work to walls and drywall
 mostly about the walls
 patching and fixing walls
 repairs and replace drywall
 patch nail holes in walls
 repair any drywall from the demo / electrical and plumbing fixes
 want to do drywall
 especially in the kitchen
 really old houses with plaster walls
 once you start taking down cabinets and nails
o starts to fall apart
o its chunky
 PATCH
 mostly time and labor
 materials are cheap
 SKIM
 mud with a fat knife
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watch out for texturing
cracks
o fix and skim
 patch
o do not want to do too much paneling
 paint white
 paint a wall color
 prime it white
 sticks to shiny paneling
o in bathrooms
 always keep it white
o this can be frustrating step
 lots of patching and mud and tape
 38 Edgewood
 1 week drywall
 DRYWALL FINISHER!!!!
 $500 for whole house
 texturing
 final drywall
Step 4: PAINT: DOORS, KITCHENS, BATHS (takes 1 - 2 weeks)
 NOTE
o start kitchens and baths
o if electrical is all done you are ready to put it back together
o paint the entire house first
 you don't want to get paint on floors and cabinet s
 hard to work around guys who are painting
 some contractors like to paint the entire house in 2-3 days
 some guys don't mind working in one room while you are working on another
 most painters prefer to have the run of the house and paint alone
 no distractions or other people to work around
o doors are re-installed and painted
 contractors can paint the doors and all the trim
 paint trim prior to install in the garage - easier / quicker
o PAINT
o LABOR
 1500 sq. ft.
 $1500
 $1 a ft. just for labor
o MATERIALS
 2000-2500 sq. ft.
 $2500
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Step 5: INSTALL
 Putting Back Together
o door are installed
o house is painted
o plumbing and electrical is done
o get windows is before paint
 order
 windows
 getting them in
o vents
o outlet covers replaced
 fix outlets
o kitchen and bath install
 kitchens
 $100 a cabinet
 basic oak
 RTA cabinets
 standard
 sounds cheap
 Ready to assemble
 30 in
 more expensive houses
 42' cabinets
 all the way to the ceiling
 cabinets and countertops
o RUSS
 tops
 bottoms
o counter tops
 material
 laminate formica
 $full kitchen
 4 pieces
 $60 each
 $250 for full kitchen
o premade
 home depot
 Lowes
 Corian
 less than $50 a sq. ft.
 fake granite
 granite
 $50 - $80 a ft.
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o
o
o
o
o
special
$40 a foot
backsplash
 then backsplash
 $4 - $8
 4 inch tiles
 by sq. ft.
 $4 - $8
o medium priced
sink cut out of countertops and installed
 hook up plumbing make sure it works
flooring
 ceramic tile
 $1.5 a ft. +
 12 x 12
 18 x 18
 1.70
 LOWES
 stick vinyl tiles
 1 - $1.20
 per ft.
 look for discounted tiles
 usually not as nice looking
appliances
 go in last when it’s ready to stage in week 6
 stainless steel
 scratch and dent
 craigslist
baths
 new tub
 do this along with plumbing in week 2
 do drywall in bathroom after tub in week 2
 $300
 more labor
 what s behind the tub ??
 OR save the tub - usually only in OHIO
 tub and tile epoxy
 sand it down
 spray application or roll on
 tub and tile resurfaced
 surround installed
 $100- $300
 flooring in first so you can set vanity and toilet
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o 12 inch vinyl tile
o $1 each
 ceramic
o $1.50 a - $3.50 a tile
vanity and toilet installed
 vanity - $50 - $250
toilet
 $90 - $250
mirror
 $20 - $100
STEP 6: FLOORING AND FINAL TOUCHES
 flooring
o do this last b/c you are walking on it
 carpet
 appliances
 pressure washing
 gutters
o replacing gutters
o can do at any time depending on weather
 roof
o finish
 landscaping
o $1,000 total
 $200 on plants
 $100- $150 on mulch
 plus labor
 windows
o depending on how fast they are shipped
 MISC week
 final touches
STEP 7: PROPERTY LAUNCH
 staging
 vacuum
 pictures
 MLS
 prepare for property launch
o prepare marketing
 See Module 9
o property launch
o Sunday 2-4
 BOOK
19 | P a g e
o
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contractor estimate books
 search on Google
 iBook’s
o difference between "MEANS BOOK"
o price we pay versus retail price
finding contractors
o price break
o nights weekends
o craigslist
o tons of calls
 lots of junk calls
o provide resume
 1 out of 10 is a decent fit
 even the 1 is not perfect
o weeks if not months
 pay starts low
o JOHN / CHRIS /
 found at a rehab
 he was finishing stuff for bank
o Chris
 craigslist
o Jeremy
 friend of friend
o randy
 craigslist
o act ignorant and see what they tell me
o what do you charge
o always ask for a resume
 send me marks resumes
o interview questions
 GET FROM MARK?
o resume first
 experience
 phone interview
 will you take $10 an hour??
 what are they willing to take before we meet
o then honesty
o references
o meet me at this house we are working on
 always say you don't need work
 I’m looking to line people up
 I have projects coming online
 don't tell someone you need them
 clean cut enough
20 | P a g e
o
o
o
 well spoken
if they check out
 let’s start tomorrow
 everyone gets paid on 1099
checks
 doesn't 1099 anyone
 most important
 are they honest
GET FROM MARK
 ads
 resumes
 interview questions
 too many ideas is bad news
 over time
 over budget
 too many ideas
 too hard to get rid of
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