Whether you’re a veteran investor or new to the world of remodeling investment properties, renovating can be a daunting process. There are many decisions and options to navigate, in addition to the high cost of materials and labor. You’re not alone! Remodeling is an industry that’s estimated to have over $200 billion in annual sales.
That being said, it’s understandable that people may feel discouraged when they need to manage budgets, schedules, and contractors!
The REI Remodel Process is designed to make this process less intimidating by helping investors understand what needs to be done and how to do it.
What is the REI Remodel Process?
When investors buy investment properties, they’re often thinking about what they can do with the property. The REI Remodel Process is a step-by-step guide to help people make decisions on what needs to be done, how to do it, and when. For example, an investor might be interested in building an ADU or converting an existing home into a rental property.
The first step is assessing the property and making a decision on whether it’s worth renovating or not. If it’s worth renovating, the next steps are researching the market for potential return and estimating renovation costs.
Once you know that you want to move forward with the project, you’ll need to decide on a timeline for completion and then create a plan for budgeting and hiring a contractor.
And finally, you’ll need to stay in contact with your contractor throughout the process and make any necessary adjustments during the process to ensure that everything goes according to plan.
The What-Ifs of Renovating
While renovating may seem like a great idea, it can often be tricky. There are many factors that go into the process, and that’s what makes it so intricate. For example, there are many questions you should ask yourself before you start:
Where do I find good contractors?
What if I don’t have enough money to finish?
What if I don’t have enough time to complete the project?
These are all valid concerns. That’s why The REI Remodel Process exists to break down each step of the remodeling process in order to help clear up any confusion. It’ll help you understand what needs to be done and how to do it – no need for guesswork!
With this process, you’ll know exactly what needs to happen when–from choosing materials to securing contractors and managing budgets.
The Pre-Remodel Phase
Before you start the REI Remodel Process, you’ll need to take some time to understand your goals, as well as what type of investment property you’re working with. This includes factors like location, size, and condition. It’s important to be realistic about your expectations and know what’s possible when you’re considering a remodel.
For example, if you have an outdated kitchen but want something that is modern and new, it may not be possible – or even economical – to update the entire house. If this is the case, you’ll want to prioritize those updates that will have the biggest impact on your project schedule and budget.
What to do Before the Remodel
Before you get started with the remodel, it’s important to make a list of what you want to fix. This will help you guide your contractor or designer with a detailed plan for how best to proceed. There are many factors that go into this, but here are some things that may be on your list:
-The size and layout of the house
-How big are the rooms?
-What is the age and style of the property?
-What amenities do you want to add?
-Which rooms need more light or airflow?
-How much time will you have available to devote to the project?
Once you’ve made this list, it’s time to find out who can take care of these changes. You may need an architect, interior designer, general contractor, or plumber – or all four! Make sure you look for someone with good reviews so that your project reaches its fullest potential. It’s also important to consider what type of remodeler has access to these types of services.
Once you’ve chosen someone from each category, sit down with them individually and discuss what you would like them to do – this is where communicating becomes crucial! It’s also important to understand how long it will take for each specialist and how quickly they work. A general rule is 2 weeks per specialty trade but there are exceptions for both large projects (4 weeks per trade) and small ones (1 week or less).
The Tools You'll Need for Successful Remodeling
The first step in the REI Remodel process is to decide what you want. This includes knowing which rooms need to be remodeled, how much time and money you have, the aesthetic you’re trying to achieve, and whether or not you need assistance.
Once you know what needs to be done, it’s time to set a budget and timeline. You’ll also need to find contractors that are able to help with your project. For example, if you’re remodeling your kitchen, then you’ll need a contractor who specializes in kitchens.
Depending on the size of your project and your budget, there are many options for hiring contractors. Some people prefer to hire one general contractor who takes care of everything while others like to work with multiple specialists. It’s important that all parties involved understand their roles and responsibilities so that unexpected conflicts don’t arise later on in the process!
Another important aspect of the REI Remodel Process is having a realistic timeline for your project–you may have an idea of when you want something done but sometimes things change as projects progress. When this happens, it’s vital that everyone involved communicates about potential delays so that unforeseen problems don’t turn into obstacles down the line.
Here are 6 important factors you do not want to overlook: Know What You Want + Budget + Timeline + Contractors + Processes (All Parties Understand Roles) + Realistic Timeline.
Identify the Scale of Your Remodel
How do you know if your home requires a remodel? First, take time to evaluate the general condition of your property – is it livable? Does it have features that are outdated or not up to code? If you’re unsure about whether the project warrants a full remodel, there are some signs that indicate the need for one:
– The exterior paint is worn out and peeled away.
– There’s a broken window or door in the house.
– You see mold or mildew growing on the walls.
– The home’s roof has leaked and caused water damage.
– The basement has flooded due to a broken pipe.
– There are holes in the flooring, exposing insulation and other materials below.
– You can’t find any hot water after turning on the tap.
– Your kitchen floor is sinking, which could be caused by an issue with the foundation.
Budgeting your funds
Budgeting your funds is essential when going through a remodel. If you don’t allocate money for each step of the process, you may reach a point where you have to stop and save up for more materials. This can be frustrating for both you and the contractor since there would be no finished product at the end of the project. Having a budget in place will help make sure this doesn’t happen.
Hiring Contractors and Dealing with Problems
One of the most daunting tasks that come with remodeling is how to deal with contractors. Contractors might not be able to show up on time, they might charge more than they quoted, they could provide subpar work, and so much more. But from run-ins with contractors to problems with scheduling, there are many challenges that come with remodeling.
But don’t worry! The REI Remodel Process provides a step-by-step guide for you to follow in order to avoid these issues and complete your remodeling project successfully.
In our process, we outline common contractor mistakes and how to avoid them. We also provide you with tips for hiring contractors as well as dealing with potential problems that arise during the process.
Dealing with problems on a project
It’s inevitable that some problems will arise when working on a project. The REI Remodel Process is designed to help investors plan for the unexpected. You can’t control everything and you’re going to encounter issues at some point during the renovation process. That being said, it’s important to have a contingency plan in place before you spend your hard-earned money!
The most important step, which we discussed earlier, is to develop a budget. This includes estimating how much money you’re going to need as well as what type of funds you’ll use (i.e., credit, savings, etc.). Budgeting is essential because it allows investors to anticipate potential problems and figure out how they would deal with them if they were to happen.
For example, say an investor has $15,000 allocated for a new roof but it ends up costing $17,000. If the problem popped up right away, the investor would need another $2,000 if they want to stay on track with their budget. The best way to account for unexpected expenses is to add a 10-15% contingency to the initial budget.
Conclusion
Hopefully, this article has helped you reach the conclusion that every real estate investor needs the REI Remodel Process while remodeling investment properties.
Want to take another step forward? Go to https://therebuildcompany.com/overview to get a free project overview.
DC Cayce
DC Cayce helps homeowners and real estate investors remodel with ease. He trains property owners and contractors how to remodel efficiently with the Remodel Process he developed to save time and money on hundreds of his own projects. DC is also an author and podcaster. Email him at [email protected] to help you remodel with ease.