Building construction can be a tedious process which could go on for months or years depending on one’s budget. Construction of a building typically starts with planning and designs by the architect through the client’s requirements then it continues to financing the project until its built and ready for use. Most clients want to build a house that would reflect their personality but within an affordable budget and yet fit their personal aesthetic requirement, this could be a difficult task to achieve without taking measures to cut costs where necessary, this is why we have assembled a few tips to get you started.
Compare Proposals and Choose Wisely
Knowledge they say is power so therefore being informed before making any decision be it materials, styles and most especially the execution is very important to choose wisely. To properly do this you should get several proposals and quotas from different contractors and subcontractors which states their requirements for labour, supervision and materials with the price attached, this will enable you compare and contrast between them and choose wisely the one that fits into your budget and also get references to be sure that whomever you choose can deliver to the standard you require and to get a well-rounded picture of the person you are working with, this will help you avoid additional expenses to correct mistakes which might be incurred as a result of poor management by the contractor.
Improvise During Construction
There are several requirements and expectations that goes into a building among which include kitchen cabinets and wardrobes, these can cost you a lot if you are building them off-site then before installing them. However you can save a lot of money by building them on site yourself, with just minimal masonry and labour you could build a more sustainable kitchen cabinets and wardrobe then finish it with marble tiles or stones which looks amazing and would last longer than the wooden one made off-site.
Adapt Sustainable Execution
Sustainability is a term which saves you money in the long run, this is to say that sometimes its better to go spend money on quality material than save money on low quality materials that would require you spending subsequently on maintenance. To consider one must avoid anything that would incur unnecessary problems in the future since it not only reduces the quality of the building it also affects your investment.
The execution of stages like plumbing and electrical fittings could generate faults afterwards if not handled properly, for example we have noticed that conduit system of installation of plumbing fittings can be hard to maintain if need arises since breaking of the walls and patching it up destroys the aesthetic value of the building as well as the structural value. To avoid this however it is best to adapt the duct system during planning so that provision can be made for the plumbing within the building where the pipes could pass through then later can be covered with aluminum louvers, that way it is neat and sustainable.
Seek Advice on Materials
Building materials today are of different types and from different companies, the market is filled with substandard products due to the fact that many companies reproduce materials made by other companies for a cheaper price but for lesser quality, so it would benefit you to make proper enquiries for professional advice on materials from contractors so they can recommend quality materials for good prices. In some cases these contractors or subcontractors can get you a better deal on bulk items such as lumber, paint and fittings since they may have a close relationship with the dealers.
In building construction materials can be salvaged and reused however possible, often materials that could be reused are wasted during stages of construction. Materials like lumber which serve several purpose in construction like formwork, scaffoldings, bracing etc can still be reused, for example planks used as formwork for floor slab could also be refused for lintels and beams thereby saving you extra cost on purchasing extra wood. The important thing to note is to be careful while removing the formwork so as not to damage them too badly.
Provide Your Own Water
A typical building construction site needs constant water for almost every activity so if you provide your own source of water without having to buy you will save a lot, you can do this by either digging a temporal well or digging a borehole. This source of water can also benefit you if you decide to mould your own masonry blocks on site, eventually it could be retained for use after the project is completed.
First impressions have a major impact on potential buyers. It’s for this reason that a good realtor will walk through your home to suggest the proper repairs and upgrades to best compliment your home and sell it fast. With your realtor, you will imagine what a potential buyer will see when they approach your house and walk through each room. Your realtor will know what potential buyers in your neighborhood and price range are looking at and what will help you sell your unique home and play up its features. Here is a generic list that will help you get started.
1.) Night Lights
A lot of people aren’t aware that potential home buyers often drive by your house at night. If you don’t have adequate lighting to highlight your home’s features, invest in a new porch light and some ground lighting to highlight your walkway or features in your landscaping.
2.) Curb Appeal
Elevate your curb appeal by cleaning your yard, mowing and edging your lawn, and trimming any shrubs you have. Fix any first impressions that may catch buyer’s eyes such as cracks in concrete, weeds, broken porch posts, ugly doors, and any clutter that may be stored in front of your home. Also, if you have a mailbox, be sure it’s charming and that your doorbell works well and makes a pleasant, audible from the outside sound.
3.) Prep Inside
The first step to preparing your home for sale is to remove any unnecessary items from the home so they can imagine their own things in it. Less is more when it comes to furniture and decor. Leave the bare minimum for furniture to depict how large the space is, and then include decor only where you want features highlighted or the eye drawn. An expert tip is to remove all but 1/3 of your closet contents and get matching hangers. Be sure to replace or shampoo all carpets in the home. Apply special attention to staging the bathrooms with a fresh roll of toilet paper (V.I.P folded, over not under, and pointed down in the shape of a triangle), brand new hand soap, new guest towels, and a clean looking shower curtain. Dress beds with attractive, cohesive bed sets.
4.) Make All Small and Inexpensive Repairs
Buyers will look at all functioning items of the home and tally even the smallest repairs. Be sure to repair all leaking faucets, defective or squeaky doors, light bulbs and fans, freshly caulk bathtubs and showers if necessary, replace filters, inspect and clean the hot water heater, and make appliances as presentable as possible. You can even include a sheet of paper attached to appliances explaining their desirable features or share with potential buyers your average electric bills and other home expenses specific to your property.
5.) Appeal To Their Senses During Open Houses
Having all the lights on, blinds open, a candle lit and fresh cookies (preferably freshly baked for the scent) will appeal to buyer’s senses and make them feel at home already. Remove all pet belongings, including bowls and food. Empty trash cans & close toilet lids.
Real estate wholesaling is a tough business but is less risky than flipping. Regardless, that’s not to say that the process is going to be smooth-sailing all the time. Like any other business, it has its highs and lows. If you know what you’re doing and enjoy each and every stage of the operation, you’ll find this line of work highly profitable.
Whether you’ve just started in the industry or already in the business for years, I’m here to share 5 common mishaps wholesalers make that you should avoid as well as ways on how to prevent them from happening.
I get that you just want to earn more. But if you’re making unnecessary charges on one deal, then you have to reevaluate your contract. Don’t get too greedy on one deal. Instead, concentrate on sealing in more deals and generating more from it.
Don’t get property contracts that are too high
This goes the same with signing up properties that are overpriced. If you, as a buyer, wouldn’t take it for the hefty cost, then don’t get contracts that come with an outrageous price tag.
Don’t underestimate the repairs
Location plays an important role in tying the costs. Repairs and other services can be priced lower in some areas and higher in others. It’s not a one-size-fits-all system. Do not underestimate repair costs and consider it when assessing the property.
Don’t overestimate the After Repair Value (ARV)
The ARV calculates the future worth of a distressed property once it has been repaired. After completing renovation work, you need to take in to account the purchase price and renovation costs in order to yield a more accurate sale price.
Knowing the ARV of a property and how to compute it will help wholesalers and flippers see if there is enough room for the lot to become profitable.
Give a good presentation
You see numbers after numbers without getting a clear picture of the property. How do you put a more accurate and reasonable estimated value on that? Of course, you do your research. I suggest that you attach pictures and a video. This helps in making the decision process faster and around the ballpark figure.
You’ll learn and grow as you go along the journey of real estate wholesaling. The sooner you figure out how to avoid these mistakes, the better it is for your business and for your clients.