Epic Development, an Atlanta based company, was recently featured in Qualified Remodeler, a national trade publication. Jim LaVallee and Rick Bennett, the company’s owners, shared with readers six steps to profitably renovating a home on a speculative basis.
- Assemble your team: Unless you’re superman you won’t be able to take on a huge remodeling or real estate project by yourself. You’ll need help from subcontractors, real estate brokers and more.
- Know your buyer: Find out who you will be targeting your home to, and check out what the competition is doing.
- Formulate a plan: Spend time figuring out the zoning issues in your area, calculating how much you can spend and make a profit and having the home inspected for potential issues.
- Create a budget: Make a budget for your project and stick to it. You’ll want to build in some wiggle room forunexpected costs as well.
- Set up a realistic capital structure: Make sure this is realistic and includes contingency and holding costs built into the total required funding. Be sure not to underestimate the timeline in regards to pre-construction, construction and post-construction selling.
- Manage the construction process: Even if you think you can trust the people you’ve hired to help, you still need to be on the jobsite. You’ll want to be there in case any issues arise and to make sure the project is going according to plan. Also, make sure you and your contractors are carrying the proper insurance.
Getting started in the real estate market can be a difficult process, but with planning and commitment, your chances of success will dramatically increase.
For more information on completing your own real estate projects or for examples of projects completed in the Atlanta area, visit the Epic Development website.