Some of my Friends are Making It Happen - Part 1

Hello again! And again it's been a while since I posted. I really have to get better about that just in case someone is actually reading this.

Today I want to talk about one of my associates from the REIA of Macomb (REIA stands for Real Estate Investors Association an dyou can visit their site here http://www.reiaofmacomb.com/). I won't talk about them by name, but if they see this, they'll know who they are.

The person and project I want to tell you about today are really incredible. You might know her from a post a while back entitled "The Power of Teamwork". Her name is Tina. Tina just finished a big rehab project. No, not what you are thinking - Britney Spears is a different kind of big rehab project. For those of you not familiar with the term "rehab" as used in real estate, it means buying a house that needs a lot of work, fixing it up and selling it to someone else. The goal, of course is to make money, but also to improve a neighborhood and provide a good house for someone.

For a lot of real estate investors a "big" rehab is fresh paint, new carpet and refinishing some hardwood floors, maybe glass block windows. Compared to that, what Tina did is a rehab on steroids. What she did really wasn't a rehab, but a rebuild. She did some amount of work on every inch of the house she bought.

She put new support structure in the basement, replaced the furnace and the plumbing, installed new windows, put in a new kitchen floor and new carpet, tore down a useless wall, gutted a bathroom, moved the electrical box and the laundry hookups and poured a new driveway. I'm tired just thinking about it. I need a break.

O.K., on top of all that - literally, on top of all that - she designed and had built the upstairs in the house. The structure was there, but there were no walls, just framing. She designed the layout herself and had her contractor build 3 new bedrooms and a new bathroom based on her design. Then she painted the house herself and found a buyer.

When all was said and done she had spent approximately 4 months and tens of thousands of dollars. She sold the house and made a nice profit. I don't know how much money she made, but I know she's a lot richer from the experience she gained. Most investors lose money on their first rehab project, Some lose their shirt and even more lose the desire to ever do another rehab project. It is rare, indeed, for an investor to turn a profit on their first rehab, especially one that big.

Congratulations, Tina.

Until next time - Make It Happen! Whatever "It" is in your life.
Bernie