Mon, 19 September 2016
Jason’s guest today, Dave, is a member of a real estate investor Mastermind group. During the last meeting, there was a consensus that two major problems exist with the rehabilitation of properties. Dave shares the two issues and some of the solutions discussed during the Mastermind meeting and feedback from his experience over the last year. Jason recognizes the property supply chain is currently going through a boom cycle. The disparagement between the property supply and demand makes it challenging for local market specialists, real estate investors and for tenants.
[1:20] Real estate investors are seeing spikes in remodeling costs and having difficulty finding good project leaders.
[6:44] The challenges of the local market specialists, the real estate investors and tenants are due to a boom cycle.
[13:10] In the last year, a General Contractor has seen a 30% increase in materials.
[17:34] Increased material costs and missed time frames both reduce profit for real estate investors.
[21:20] Solutions to the problems include automating the process and having an efficient project manager.
[27:23] Real estate investor demand has far exceeded the supply of good inventory.
[28:04] Rehabbing properties has become entirely different than in the past. Current available properties are in worse condition.
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