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From Renos to Riches. The Canadian Real Estate Investor's Guide to Practical and Profitable Renovations

  • ID: 2214832
  • Book
  • September 2012
  • Region: Canada
  • 256 Pages
  • John Wiley and Sons Ltd



As an investor, part of providing a residence for your tenants is providing a place where they will feel at home and want to stay. How do you do this affordably and strategically? Many landlords will either do a minimal amount of work and work that has no lasting value or at the other end of the spectrum, go overboard, using expensive materials and paying for extra and unnecessary labor. Rental renovations are meant as a long–term investment with your best asset in mind your tenant. Knowing what renovations to undertake and how to do them will guarantee that money is well spent on long–term renovations that last the life of the property and decrease tenant turn–over and loss of rental income.

From Renos to Riches is the product of the author′s experience as a renovator and investor in residential properties. It offers the reader insights into these key areas:

  • how to assess and cost a renovation and determine if it makes financial sense;

  • what′s involved in contracting out a job;

  • how to keep to budget and timelines;

  • how to green your property;

  • jobs you can tackle yourself;

  • design tricks that are inexpensive but look like a million bucks;

  • and much more.

With this book you can grow the value of your portfolio of properties; increase cash flow through strategic renovations and decrease expenses by saving money on maintenance by doing the job right the first time; reduce energy usage; and create goodwill with the people who drive your business your tenants.

Note: Product cover images may vary from those shown

Acknowledgements xiii

Call to Action Flip School xiv

Introduction: What This Book is Designed to Deliver 1

The Reality 1

My Goal 2

It s Not as Much About Numbers as You Might Think 3

The Meat and Potatoes 3

Part I: In the Beginning: What You Need to Find Out About Property with Potential 7

Chapter 1: How to Know What Upgrades the Property Needs 9

The Secret that s Not a Secret 9

Going Through the Pain 11

Developing Your Instinct 13

Knowing What Needs to Be Renovated (and What Doesn t) 15

What I Really Want in a Renovation Job 17

Chapter 2: How to Inspect the Property 19

When You Might Not Need an Inspector 19

Exterior Red Flags 21

Interior Red Flags 24

Chapter 3: Red Flags to Red Tape 31

Engineers and Architects Reports 31

Test for Heating/Cooling Loss 35

Building Code Requirements and the Role of the City/Inspectors 36

Doing It the Right Way Like a Professional 37

Permit and Inspection Procedure 38

Renovation Realities: Gary McGowan Strong Relationships Let You Sleep All Night and Profit All Day 41

Part II: Interior and Exterior Upgrades with Economy in Mind 49

Chapter 4: The Secret to Profitable Property Upgrades 51

How Does It Work? 52

Mindset Toolkit: How Ego Can Sabotage a Renovation Project 53

Planning and Scope 54

Critical Path Progression of Tradespeople 56

Sticking to Your Plan 57

Contradicting Myself: Some Plans Are Made to Be Broken 59

Chapter 5: Kitchen Upgrades with Economy in Mind 61

Meet Julia and Dan 61

Julia and Dan Like Kitchens 61

How Do I Do High–End Renovations for Little Money? 62

Don t Believe the Hype! 63

Pick–and–Choose to Maximize Profitability 63

Review: How to Renovate for Royalty While Saving Money 64

Kitchen Upgrades: The Practical Stuff 65

Chapter 6: Bathroom Upgrades with Economy in Mind 77

The Practical Stuff 77

Chapter 7: Upgrading the Living and Dining Rooms 83

The Practical Stuff 83

Chapter 8: Bedroom and Basement Upgrades 91

The Practical Stuff 91

Chapter 9: Exterior Upgrades with Economy in Mind 95

The Practical Stuff 95

Renovation Realities: Quentin D Souza Key Design Feature Turns an Average Deal into a Home Run 107

Part III: Acquisitions and Financing 115

Chapter 10: Case Study: The 1970s House 117

Julie Broad How Do You Fund a Renovation? 117

Funding a Major Renovation 118

I don t have money of my own. I want to do more creative deals. 120

Getting the Money: How to Finance Your Renovations (& Deals!) with Private Money 121

Options for Acquiring and Funding Renovations 125

Renovation Realities: Jason Paquette Things Go Sideways when the Contractor Doesn t Fulfill His Duty 133

Part IV: Developing Your System 141

Chapter 11: Setting the Stage Saves Hours and Thousands of Dollars on Each Project 143

Mindset Toolkit Systems Create Peace of Mind 143

Step 1: Th e Big Shopping Trip 146

Step 2: Tool Preparation 148

Step 3: The Magic Spreadsheet that Improves Productivity (Purchase Order) 149

Set the Stage for Success 155

Chapter 12: The Onsite Whiteboard and Teamwork Expert Tips that Improve Productivity 157

How the Whiteboard Breaks Down Tasks 158

The Tradesperson Agreement Form 160

The Reset Concept : How to Boost Productivity by Taking a Step Back 162

Stages of the Reset 163

Chapter 13: A System for Flooring, Painting, Boarding and Tiling 167

The System 167

Why This System Works 168

Systematize Your Investment Renovations for Simplicity, Repeatability and Productivity 168

Renovation Realities: Peter Wardell Identical Units, Opposite Renovation Experience, Similar Result 169

Part V: When You Need to Call in a Contractor 177

Chapter 14: How to Find an Experienced and Reliable Contractor 179

Types of Contractors 179

The Formula for Hiring Contractors to Be Part of Your Team 181

My Values 183

Chapter 15: My Formula for Limiting Labour Costs 185

Have Clear Expectations and Job Scope 185

Expectations Are Everything 187

Articulating a Clear Job Scope 189

Use Your Scope of Work to Shop Around 191

How It Works 192

You Are in the Driver s Seat! 194

Save Thousands on Materials by Having a Clear Scope of Work 195

On–site Management Is the Key to Profitable Execution 196

Renovation Realities: Aaron Moore Ignoring His Doubters Proves to be Profitable 199

Part VI: How to Save Money on Materials 207

Chapter 16: How to Get Creative with Materials 209

Use Your Own Guidance System 209

Renovate for Practicality and Profit, not Personal Preference 212

Relationships Are the Key to Finding Deals on Materials 216

Then I Ask for More 217

Payment Terms 217

Chapter 17: Buying Used Materials Can Save You Thousands 221

The Practical Stuff 221

Renovation Realities: Dave Peniuk Managing Renovations from a Distance Forces a Life–Changing Business Decision 225

Part VII: It s All about the People 233

Chapter 18: Building the Dream Team 235

Yourself 236

Your Renovations Staff (Tradespeople, Labourers, Full–time Staff ) 237
Your Spouse 239

Sellers 240

Real Estate Agent 242

Mentor and Mastermind Group 243

Money Partners 244

Your Lawyer 245
Friends and Family 245

Chapter 19: Th e Ultimate Key to Success Taking Care of Your Tenants 247

Attracting and Retaining the Best Tenants 247

Increased Rental Income 248

How Top Tenants Can Impact Your Life and Your Business 248

Property Maintenance 249

Appendices 255

Appendix A: Renovation Projects in Different Seasons Don t Erode Your Profitability by Being Unprepared 257

Exterior Work 257

Timing Renovation Completions 258

Find Deals in the Winter 258

Appendix B: Animals Nesting in the Attic A Golden Buying Opportunity 261

Big Problem Equals Big Opportunity 261

The Process for Animal Remediation 262

Appendix C: Grow–Ops 265

Value 265

Jumping Through Hoops 266

Appendix D: Additional Resources 269

Sample Inspection Checklists 269

Sample Note 271

Sub–Trade Contract 272

Index 275

About the Authors 283

Note: Product cover images may vary from those shown
Ian Szabo
Note: Product cover images may vary from those shown