Today I have a meeting with a couple of investors in Corona CA. These two individuals have been buying residential properties at auction, rennovating them and of course trying to sell them at a profit. They've been doing this in Orangs County, Riverside and are now moving south to Temecula, Murrieta and San Diego. They brought in a general contractor to do all the rennovations and give them an idea of cost prior to purchase. It seems a few problems arose with this and ultimately the last two projects were not profitable for the investors do to unrealistic repair and upgrade estimating along with many items that were not looked at and became unexpected costs.
I am extremely excited to have the oppurtunity to have lunchand potentially work with this team. In this market it is always good to see that there some people still working and profiting. It seems that what they are looking for from me is to provide them with what I will call an "Investors Inspection".
This inspection will look for any major problems i.e; structual, roof problems, electrical, water, etc. These problems can lead to those extra costs that can ultimately eliminate any profit. The margins are obviously much smaller than several years ago, therefore making it imperative to minimize any overage in the cost to repair and renovate. With this inspection, I also look at the cosmetic and aesthetic issues for resale puposes, something generally not looked at in standard inspections.
These investors I am happy to say have a high standard, they want the houses they sell to be nice, to have a beauty and soundness which will distinguish their houses from the many other investors out there flipping homes. In essence this standard of quality is there signature. Next, they need someone honest and experienced to help them find the proper people to do the repairs and upgrades correctley and for a reasonable fee.
Being a general contractor I have a great network of licensed sub-contractors who are reliable, experienced and hungry to work. When they are through with all repairs, rennovations and upgrades they would like for me to come out and do a Move-In-certified seller inspection. This inspection has many advantages for all parties. Here are a few but not exhaustive.
For the seller it allows the seller to be involved in the inspection and brings to their attention any potential problems prior to negotiations. It also is able to be advertised in all literature and by yard signs that we provide, as "Move IN Certified" to help once again attract potential buyers as well as again distinguish themselves from the competition. Remember that signature thing?
For the buyer it means the inspection has already been paid for and performed by a InterNACHI certified home inspector giving them the option of waiving the inspection contingency, which can streamline the sale process. These and the many others only help the Real Estate professionals (agents). This would seem pretty apparant that this inspection at the very minimum could help remove one of the many obstacles agents have to deal with.
Well I have run out of time for now. Wish me luck. I think one of the benifits of writing or blogging is the organizing of thoughts on paper as well as in my head. Hope you all have a great Monday and it is the beginning of a fantastic week!!
Brian
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