How To Replace Your Income With 12 Rental Properties (Part 9 of 9)
After coaching so many people through the process of buying cashflow properties and replacing their income…
I’ve arrived at a “framework” that I have my clients follow.
This 9 step process is the most logical and effective way to build your portfolio.
So far, we’ve covered:
Step #1 - Pick Your Market
Step #2 - Build Your Team
Step #3 - Getting Setup
Step #4 - Find The Money
Step #5 - Find The Deals
Step #6 - Analyze Deals & Make Offers
Step #7 - Due Diligence
Step #8 - Closing & Funding
In today’s post, I’m going to cover the FINAL step, Step #9:
Renovate, Rinse, & Repeat!
Let’s dive in!
So you own a house! Congrats! You’ve done the hard part. Now, it’s time to make that house clean and safe, ready for a tenant to move in and pay top-dollar rent.
Here are the keys to the “Renovate, Rinse, & Repeat” phase of buying a house:
Meet With Your Project Manager - The first thing I do is schedule a call with my project manager to get things rolling. We determine budget, deadline, quality standards, etc. I set bonuses based upon him hitting those targets. We also set a schedule for our next calls, set expectations for what pictures/videos he will send and at what frequency.
Continue To Hold Meetings - Meet at least once per week (on webcam or phone) with your project manager until the rehab is complete. Make sure to release payments in chunks, based upon completion. I.E., if the rehab is 15K, pay 5 payments of 3K or something like that, as you see proof of work getting done in the pictures and videos.
Final Payment - Never allow your Project Manager to release the final payment to the contractor until the work is FULLY done, down to every little punch-list item. This motivates the contractor to push through and leave nothing undone.
Hand Off To Property Manager - Once you have a renovated house, hand it off to the property manager to advertise and rent! Set the rent amount/deposit/pet rules/etc with them. Sign their contract after reviewing it. Get set up for them to pay you.
Rinse & Repeat - Now you are ready to go back to step #5, Find The Deals, and find your next deal, and do this over and over until you get to 12 houses! The good news is you don’t have to do steps 1-4 anymore, they are one-time things. Plus, you’ve experienced the process first-hand so you have the confidence and mindset now, which is EVERYTHING to your success. Great job!
If you are interested in a more comprehensive training on how to get your first 12 houses, check out our 12 House Masterclass which includes not only includes a module on this, but also:
A comprehensive 50+ video training course on how to get your first 12 houses
Bi-Weekly group coaching calls with me
Access to our private, closed Facebook Group where you can ask me questions to your heart’s delight
Access to my private money lenders
My 2018-2019 Best Markets Report
Coaching Call Recordings
A “Freedom Artist” T-Shirt
And much, much more!
Reply to this post if you have questions...peace!