Know All the Costs Before you Proceed with the Project - 101 Street Smart Cash Flow Accelerators #76

My name is Lou Brown. I'm here with another of my 101 cash flow accelerators. And in this one I want you to be aware of what your costs are when you're doing renovations. I know that sounds simple but it's really not. A lot of people really don't understand what they're going to spend when they go into a project often. Yeah. Actually, as an investor, I buy from wholesalers all the time and one of the things is they bring me projects that are failed projects. Why? Because the on knowing untrained investor came in, purchased the property, started the renovation, ran out of money, got taken advantage of by the contractor, didn't know what to do, didn't know how to do it, crashed and burned brings me the deal. I buy it for pennies on the dollar. I'm able to finish the renovation. It's something you need to be very aware of, particularly if you're just getting started in the business.

It's critical that you know your costs literally go room by room. Now in my system, on renovations, I actually take you step by step and room by room in the budgeting process and so you're identifying the items in that room. Now what I've done is already given you a tip off for each one of the things that I want you to look at when you're at that project. And so what happens is now you are triggered to actually identify that particular thing. For example, in the kitchen, obviously cabinets, then counter tops and then the sink and then the faucet. You see each one of these as a separate budget item and can be highly skewed on the costs by your choices of banishes, by your choices of quality of cabinet, your choice of this sink, your choice of the faucet. You see each one of these items can very widely, as I was saying, so it's important that you identify these things by taking that list of budget items, you identify what you're going to have in your project.

Now you can go online, thehomedepot.com or you can go to other suppliers and you can literally identify the items that you want selected for your property and put those item numbers. In fact, you can build a list right there online. Build a list of all the items that you want and they'll add them up. Now we are certified affordable housing providers. We have special, discounts with various suppliers under our brand. So that's another thing. Once you become certified, did you get the benefit of like automatic, 20% off paint, automatic discounts on cabinets, automatic discount on carpet, automatic discounts on packages of appliances, these things that we've been able to pre-negotiate for you for our certified affordable housing providers. Well, I hope this has been of help to you. To learn more about our system, go to streetsmartinvestor.com click on tools, click on renovations, and I'll see you soon. Share this like this. Love this and I hope to see you soon.