Can I Make Money In Real Estate Without Doing Rehabs?

Read Transcript for “Can I Make Money In Real Estate Without Doing Rehabs?”

 
I’m going to talk about how you can avoid having to do rehabs and still be able to find and get real estate deals done.

“I don’t want to rehab properties or clean toilets or deal with tenants calling in the middle of the night. Is there any way I can still make money in real estate?”

Joe: I never deal with tenants, I never clean toilets and I never get called in the middle of the night. I have very short hours and I take calls during the day as well.

Joe: You don’t have to rehab properties. When I started, the second house I ever did was a rehab. It was fun. It was fun to see the property improve. It was fun to see it cleaned up and look really sparkling, but it was also an awful lot of work. I spent maybe two weeks on it. I made money on it. Was it worth doing? Yes. It was probably worth doing. But in that same period of time, I could have done five more deals if I hadn’t been working on painting and dry walling and doing all that other garbage.

Joe: I don’t even believe it makes sense to do rehabs where you have a crew doing the work for you because you have to manage that crew, which is a huge amount of work. There’s a lot of other ways to structure deals.

Joe: Also, with rehabs, you have to buy them substantially under market value to make them make sense at all. With all of the techniques that I’m teaching, you don’t have to buy them that much under market value to still make a profit. You can make $4,000 to $10,000 on these deals even when you’re buying them for 90-95% under market value, and there are a lot of techniques to make that happen.

Joe: What that means is that it’s going to be easier to find deals, which means that you can do more deals. When you’re looking for substantial big time discounts on properties, they can be hard to find. They’re out there and you can find them but they’re further and farther between.

Joe: Why not create a system that is more consistent that you can do every day where so many deals are going to pour in that you have to turn deals away? I have students that call me and say, ‘Does anybody want this deal? I don’t want it. I don’t have time for it. I can pass it onto them but I’ve got too many other things on my plate right now.’ I’m passing off deals to my other mentor students all the time in the different areas that they’re in, and you’ll get into that position too if you start using the techniques that I’m teaching. Alright, I hope that helps.