Some of the questions I get is Billy what tools do you use? Billy what's your overall process for bringing in a rehab deal? Billy how do you guys manage? Billy what software do you like?
Today I want to give you guys an outline answering these questions. I can't go into detail because it would take me fricking hours to break this thing out, but I'm going to give you the processes..
The phases that we go through, what the phases are and what we do in each phase.
Then I'm going to give you the people you're going to need in your team, with my flow, we have a certain, they call it fish lane when a deal comes in, multiple things happen at one time. So when a deal first comes in, it's going to go down five or six swim lanes. And on those swim lanes, certain people are going to be doing certain things simultaneously to get that file to the next phase in the process
Then finally I'm going to break down the tools that we utilize. I'm going to give you guys a references that you can start leveraging these tools instantaneously to bring into your business, to start streamlining some of the processes.
You do not want to miss this episode, now let's get started.
As always if you need anything come find me at billyalvaro.com and billyssecrets.com
Talk to you all soon!
Welcome to Unstoppable Real Estate Investing Wealth. My name is Billy Alvaro, AKA the unstoppable BA former billion dollar mortgage banker gone bankrupt turned professional real estate investor where each week you'll learn the tools, strategies, systems, and secrets. And other, a highly successful real estate investing entrepreneurs use to start, grow and scale their businesses, creating massive profits and how you can too.
[00:00:31] And we'll teach you how to put those profits to work. So you no longer have to get ready to finally experience financial freedom and generational wealth. Now let's get started.
[00:00:43]What is going on, guys? This is Billy. Alvera the unstoppable BA and you're listening to Unstoppable REI Wealth. I will, I really do appreciate you. Tuning in this week to listen to what I have to say before I begin. I just want to tell you a bunch of the tools that I have utilized and my guests have utilize. You can find them all in one beautiful little location called Billyssecrets.com.
[00:01:07] You go there. The marketing systems, we use the software we use for the marketing to run real estate investing business lists and where we buy them, the marketing pieces, radio, TV, advertising, anything you need to start, grow and scale your real estate investment. I'm putting all in one spot. So I don't have to answer a hundred emails a week on who you use for this and where do you go for that?
[00:01:29] So it's all there. Utilize it. It's a great resource. The Deal machine is on there. A bunch of softwares that you could deal machine by the way, is a piece of software that you could utilize. Find vacant houses, skip trace people, vacant houses, send them out marketing pieces. My whole team uses it. We use it and we do approximately about eight to 10 deals a year from the deal machine software.
[00:01:49] Go to my links inside there and you get either a discount or a free month. I can't remember exactly what it is also. Propstream is on there. Propstream is really good for building your list and for running comparables anywhere in the United States, if your virtual wholesaling Propstream is a must go to Billyssecrets, click in that link.
[00:02:09] And now you're going to get a special gift with that as well. If you want to partner up with me a little infomercial here. If you want to partner up, do JV deals, borrow money, lend money, anything that has to do with doing business with Billy Alvaro, go to Billy Alvaro.com, fill out the information on there and see if we are a good fit to do business.
[00:02:27] And lastly, my private lenders have been making a shit ton of money with us. Very little to no money. They been getting paid out every single month, every single quarter, every single year. If you're somebody that wants to get into the real estate investing space, but you don't want to go out there and find and flip properties or wholesale and you have money to invest.
[00:02:48] Go. I have, I created a 52 page white paper. Six videos that explained to you the alternative asset class, which is mortgage notes, how to invest in it, what you need to do, what documents you should have, how you can protect yourself, no cost, no obligation. If you go to low-risk max returns.com on there to see a quick video of me, you'll get the white paper is a webinar that you can choose to listen to.
[00:03:11] And then it's six, three minute videos that explains the differences from. Real estate investing to the stocks to bonds mutual funds, CDs, even investing in. Notes verse single family rentals. So check it out. Low risk. Max return is if you have money, you want to invest. That is a good resource that you could utilize too checkout.
[00:03:30] Now, today we'll be speaking about I'm going to be going through. So I've been posting on Facebook a lot about what I'm doing out here in New Jersey and out in New York. I moved to New Jersey when the pandemic hit and I can't just sit and live in New Jersey and still do business in New York. So I had to start doing something out here.
[00:03:46] Of course, it's real estate. What we've done in the last year is we've mushroomed, New Jersey, and we've expanded New York considerably. As of last Wednesday, I'm recording this on a Tuesday. As of last Wednesday, our pipeline had 89 properties in contract to purchase. We have right now, 23 properties between New York and New Jersey that are in one phase of construction or another.
[00:04:10] And we have about a dozen right behind that, that are in the planning phase that we're just getting ready to close. To push out. Now, one of the questions that one, but multiple questions I be getting asked on my DMS on Facebook and Instagram is not so much how we're finding them. That's one of the questions, but a lot of the guys that want to get into rehab with a rehabbing is say, look like, what are you doing?
[00:04:31] What's your process? Go in. And can you break down how you're running your rehab jobs and look full disclosure, guys, I am not going to proclaim to be the real estate. Guru, when it comes down to renovating properties, we've been, I've been doing it for 13 years. I have a killer system I've been in the last year and a half really gearing this towards opening up a construction company, which we did in New Jersey.
[00:04:54] We're a fully licensed operational construction company with six employees, and we're going out to New York and put a license in. And there's a couple of reasons strategically that we're going to be doing that. But in the last year and a half, we really started putting a lot of emphasis on the construction side of the business.
[00:05:09] We've been doing it for years, but we've been doing it in a way where we were operating more or less like a project management company. And now we're really operating. As a full fledged construction company, there are some differences, but when we had the real estate, when we were doing it as a project manager and how we're doing it now, it's still along the same lines.
[00:05:28] We just really dialing in our processing. So some of the questions I got is what tools do you use? What's your overall process for bringing in a rehab deal? Like how do you guys manage, what software do you like? I don't want to go through. I want to give you guys an outline. Can't go into detail because it would take me fricking hours to break this thing out, but I'm going to give you the processes, right?
[00:05:51] The phases that we go through, what the phases are and what we do in each phase. And then I'm going to break down the tools that we utilize. I'm going to give you guys a references that you can start leveraging these tools like instantaneously to bring into your business, to start streamlining some of the processes.
[00:06:08] And then I'm going to go into, and I'm going to give you the people you're going to need in your team. And then my flow, like we have a certain, they call it fish lane when a deal comes in, multiple things happen at one time. So when a deal first comes in, it's going to go down five or six swim lanes. And on those swim lanes, certain people are going to be doing certain things simultaneously to get that file to the next phase in the process.
[00:06:31] If that makes sense. So first let's go through, I'm going to break through. The phases that we go through. And again, everybody does things different. This is my way. It's not the best way. It's not the only way. It's my way works for us at Easy Sale property solutions and max returns. So the first thing we do, when a deal comes in our office, we call it the due diligence process.
[00:06:51] What is that? It's exactly what it says. It's due diligence. Let me get a glass of water. When a deal comes in New York and New Jersey, it has to go through and it has to pass certain litmus test to ensure that the property that the acquisitions team is brought in is going to meet certain criteria for us to do it.
[00:07:08] So first, obviously we do a review before it gets put into the pipeline, the sales manager in our company. Does an ARV review reviews that in detail looks at all the pictures and looks at the comps and the pitches rather than the, see what the rehab is going to be like once it passes him, if he has three comps, it's in the area and meets a certain threshold, it automatically gets pushed through.
[00:07:31] And then when it's in the back pipeline, the rehab manager goes through and he has to verify the information. That's in the system regarding the rehab. If all the front end, there's a questionable deal, we don't have three cops or it's kind of like a pink elephant for the area. It just doesn't fit. Or it's, largest square footage.
[00:07:50] The acquisitions manager is going to flag that file. And what we do every single Wednesday is we'll go through and we'll analyze, we'll take 10 or 15. Just to analyze that deal and going deep. And we have three people that go around, we do a zoom and everybody's going to put their thought process into, is this a deal worth pursuing?
[00:08:08] Or should we take it go down another road, maybe wholesale, maybe flipping to somebody else, whatever. So it's important that you have a process outlined in the beginning when a deal comes in. If it passes everything, it's a dealer we're going to be doing, what do we do? So if this is a renovation, the other, we are going to be putting our money and our best is money.
[00:08:26] The most important things you need to do is your due diligence to ensure you're not going to lose money. You want to minimize the risk. There's always risk in this business. Our job is to minimize it, break it down so that you got, if you lose, you're going to lose a minimum and we never want to lose. And that's the reason why we do the diligence.
[00:08:44] And so in our culture, As soon as we get that deal through the, we usually have a seven to 21 day due diligence period, and people like we have flip a properties. How do you get that? We ask for, especially if we are renovating . We have to go in and do our due diligence. I don't want to buy a property that from eyesight, it looks like it's a $50,000 renovation.
[00:09:05] Once we start doing the due diligence, it could be a $90,000 innovation that would kill all deal, make us lose money. We don't want to do that. So in our business, what we do is the first thing we do is we send it down. We get a home inspection report and that home inspection is going to cover a lot of things depending on the state that we are.
[00:09:22] Problem inspections. If you go in there and inspector, and he's going to look at property and home, I'm not just sold about your electric doesn't work. This is crap that we know what taken care of. I don't care about. I care about the major systems. I care about the roofing system. I care about the foundation.
[00:09:37] I care about the septic. I care about the electric in the house, not the outlets, but the overall system, it was this thing blown out. I care if there's major mold in the basement, I care about it. This is a buried oil tank. So those inspections get done. The whole inspection, the oil tanks sweep to see if there's a buried oil tank, the septic cesspool or sewer, it gets inspected because that's a big nut in New Jersey.
[00:10:04] It could be as high as 15, 20, $30,000 just to repair a septic. Not good. Water test, if it's well, water, get the frigging water test. How do I know about this? Because we've bought properties and most of the properties we buy have city water, some of these older homes that are in these areas that they don't have city and they have, well, the well water can be contaminated and it can cost an arm and a leg.
[00:10:25] If you want to make money in this business, you make money. When you buy, you don't make money. When you sell it, you realize the money when you sell it. But you're making the money. When you buy the more due diligence you do upfront, the more you invest upfront and it can cost. A thousand to $1,500 per file to invest in, to do your due diligence.
[00:10:47] I'm telling you it is going to save your ass down the road. Now, in the beginning years, when I first started doing this, I was a cowboy. I didn't do any type of inspections, anything. I didn't get surveys. Like I was looking back a complete and utter asshole when I first started, because I was just so aggressive wanting to bring deals in.
[00:11:07] I was buying deals, oil tanks, buried oil tank problem. There's a small leak. And in New Jersey, it's automatic. You have to get every single thing tested in New York. You can kind of get away with it, but it's a problem. We had crack foundations that I didn't know about. We had water issues we'll want to issues that we didn't know about.
[00:11:26] I only had to get bit one time with a certain situation. And I realized I got us following something up and I have to start slowing down, investing money into due diligence. Because again, it's not, when you don't make your money, when you sell, you, make your money. When you buy, you realize that when you sell, so the front end doing your inspections to support.
[00:11:43] Now I'm not going to go through and do a structural engineer unless my home inspector goes in, says, Hey, you have a crack foundation. It's sliding a little bit. I think you've got to get a structural engineer. And so we're going to go through an order specialty reports based on what the initial reports tell us as we're going down.
[00:12:01] If you remember at the beginning, when I said this, we start a rehab. When we initially do a deal, it goes down many swim lines at one time. So multiple people, multiple actions are taking place at one particular time. And in our system in Podio, it triggers out all these tasks and assigns of different people in our office.
[00:12:19] And then they assign of the people on the outside. All one shot. So the next thing that happens simultaneously as these inspections are getting ordered and done automatically, we're going through, and we're looking at either an over report, which is an open public records report or a foil requests. And what this is going to do is it's going to tell us on these properties.
[00:12:41] Does it have a proper C of O's? What kind of violations are on the property? And this is important. I was went to the violation piece. Now I'll go into it now in certain areas, if we're going to go in and it's not a major renovation, it's just a pull and push. I call it taking out the kitchen, pushing in the kitchen, taking out the bathroom, putting in the bathroom.
[00:12:58] You're not doing any structural changes to that. If you don't pull your Oprahs and your foils, or if you don't go down to the town yourself and pull these requests to see your violation requests, you see if requests any open permits. If you don't do this upfront, right. And you're waiting and you think you're going to get away with not pulling permits on a property because it's not a structural thing.
[00:13:19] You just do a push and pull and you. It has an open violation that violation, when you go to resell that property is going to have to be closed out. If you did any type of renovation inside that hall and the bank doesn't know about it, or I'm sorry, not the bank, the town doesn't know about it. Or if you have a finished basement and the town thinks it's an unfinished basement and there's a violation for whatever converted garage.
[00:13:45] Illegally converted garage into living space. When that town goes to come in to reinspect and begin to look at your home, guess what they gonna do? They gonna look to the whole fricking house and they're going to go downstairs. They're going to see that you have a finished piece of where on the record, it's just not finished.
[00:13:59] Now you have to like incur all this expense and time and process and money and all this other shit, which you could have got away with. Did you do diligence upfront? You saw there was a violation and then what you should do is you should just pull them into that property. And again, I'm talking about, if you were going to do a non permitted property right, push and pull important, you want to know when you're getting into these deals, what you're, how are you going to go about renovating?
[00:14:22] Are we pulling permits and we not pulling permits? This house have violations. If it does pull permits the matter, what? Get that shit fixed up in the due diligence process, you got all your home inspections, you get all your violation reports, your Oprah's, you C of O certs. Permit certs you permit inspections.
[00:14:37] Rather, you're going to go through and check the zoning of the property, make sure it's zoned the right way. You want to make sure that everything inside that home has a co like if there's a second addition and then you pull, C of O cert. And it says, one story home, you should have your red lights should be going off and be like, all right, this is a problem here.
[00:14:53] It's not a problem. It's, there's a problem. So now you could actually renegotiate with the seller up front. If he or she was projecting this house. A two story home and it's really a one story. So you have to the point, this whole thing is you have to do your inspection process and due diligence, and you've got to get that stuff done upfront.
[00:15:09] So you could either renegotiate or back out of the deal. Very important. Okay. The next phase, as you've gone through this, now you've gone through and it looks like, okay, this is the deal that we've addressed so many issues. So now we're going to be able to go through to the second phase. Now, the second one.
[00:15:25] It's the planning phase, right? So when our company, this is what happens as soon as it passes the last couple of phases, I told you about the inspections, the zoning, the Oprah's, all that crap pictures were taken and then upload it into Dropbox. All that's done now in the planning phase. So simultaneously what goes on is the, if we're going to pull permits, we get a full blown set of plans.
[00:15:46] We have an architect that goes out there. They take the as-is plans, the floor plan. And then from there, they come in and they go through a couple of other steps with us, which we'll talk about the second. You're not going to get permits. Then you don't need a full fledged architect. You just need somebody.
[00:15:59] This is what we do. We need somebody that goes out to go out to the house to take the, as his drawings of the property, doesn't need to be an architect. Somebody just those floor plans, relatively inexpense , inexpensive. 300, 400, well worth it. What they'll do is they'll give you that floor plan in CAD, and then you could then talk with them over the phone.
[00:16:20] And say, Hey, I just, I want to set the kitchen up. What we here, I want to open up this wall. It's not structural. I want to take down this wall and just open up the floor plan a little bit. So it's important to get your architectural plans and your floor plans up front. So with us, it's either floor plan architectural.
[00:16:35] From there, it comes back in, they, the architect sends it over. We give him some ideas of how we want the structure laid out. We bring in our design. Right. We have somebody who actually does design on the team for both New York and New Jersey. They never have to go out there to the, Nicole. She never has to go out and look at these properties.
[00:16:53] She's seeing the pictures. She's seen the architectural plans from there. She's giving the architect some ideas of opening up this layout, the kitchen that way. But you know, we want to add an extension to the back we want to do on the property. We go through this whole planning piece of how the property is going to be laid out.
[00:17:08] She's good with layout when that gets done as that's happening, right. Another process has happening in our office. We have the home engineer's report and all these due diligence reports that came in and the, you all went to a specialist and this person's job is sole reason to come on, to work with us in the business is to draft the scope of work on the property.
[00:17:30] So he'll talk with our team, he'll get the home inspection report and everything that's wrong with the person. He'll get from us the level of rehab that we'll look at to do. Okay. This is the kind of rile about what we're trying to do with the property. And then he'll create a, when I say detailed, he would create a detailed line by line scope of work that you can give to your project manager or your contractor, or your end, your subs, and they can bid off the property.
[00:17:57] So with us, it's like a four-page. It's broken down by demo, by your trades, electric plumbing, HPAC general contracting. He has everything written out. He then sends that over to the architect who builds all that stuff into your architectural plans. Architectural plans are like killer. Did we have everything inside it?
[00:18:19] Now you have your floor plans and, or your architectural plans, depending if you're getting permits and you have a complete scope of work. Right. What's the next thing you had to lay out and your designs, you have these three different people that are in your business that helping you put together everything.
[00:18:36] And so let me ask you this pricing. What's it going to run for architectural plans? Well, if you're going to get permitted and he went from 25 and 5,000, depending on the size of the house, if it's not permitted, you just going to get floor plans anywhere from 300 to 500, maybe 600, depending on the square footage, scopes of work, you can get scopes of work.
[00:18:54] By a pro for 200 to $300. You don't need to do your own scope of work. You don't even have to have your, if you're really busy, the way we are, we can't even have our project manager do the scope of work. We've broken it out into swim lanes. Scopes of work though, my one guy takeoffs, the materialist gets done by somebody else.
[00:19:13] And in the project management side of the business gets done by the project manager. He or she is just responsible. For managing the projects, bringing the subs and making short orchestra that everybody's doing their job. So it's really, it's set up almost like a Ford conveyor belt, right? When Ford built his business, he had everything down the line, but instead of us going one line and one person doing their job and wait for the next, we go down four or five line lanes at the same time and everybody's doing their job so we can get to the finish line a hell of a lot quicker.
[00:19:45] All right. So we have your land design and then we do takeoffs. So a takeoff is really just a fancy name for your materials. Once you have your scope of work, you have your architectural plans and you have your designer who we have a design layout person for the house. And then we have a designer with our design boards that we pick out all the finishing touches inside here.
[00:20:03] When that's done, we have somebody that does all the takeoffs, they break out. Specifically how much material you need for framing for sheet rock, for paint, for floor, for tile, for trim, your doors and windows, everything is taken off. And then from there, you, we have somebody that actually goes out and builds that material.
[00:20:26] To get us the absolute lowest possible rate on a material. Now, right now that position is actually being done by my, by four different people, myself and Nicole, Tommy, we're all doing, cause there's not one person responsible cause we have to fill that role. But once we get that person in, that's what they're going to be responsible for.
[00:20:44] And that job is going to pay for itself and we're going to pay per job. We're not going to have a person on salary is going to be a per job process. So we go through, we did our due diligence process. We have our planning process from there, everything is ready to go and do what to get bid. So now we go through a bidding process.
[00:21:02] Now, depending on how you run your business in this whole process, again works for us. You might have to do things differently depending on where you're at in your business. But for us right now, with the bidding process, we're taking it. We have our own construction team in New Jersey. And then we have we're right now in New York.
[00:21:18] We're not licensed. So it was still like project managing the teams out in New York. So in New Jersey, We get the planning processes done. We have over packages in before we're getting ready to close. We're still in the process of getting this all done. We don't even own the property yet. Now we take the scopes, we take the blueprints and we start sending them out to the vendors that we have that have, that are going to be working on the job.
[00:21:41] Who are they? If you're gonna have one contract or one general contractor, you're just going to send it to him. But you have to realize if you only have one guy. That you're going to be sending your scope to that. You're hoping to run your job. You're going to pay more money than if you sub out the job yourself.
[00:21:56] Even if you're not a licensed contractor, if you submit out at least to the four main trades or five main trades, and you manage those five, you'll save some money. If you sub it out just to the contractor himself and you're relying on it. To get the plumber, to get the HVC guy, to get the TB electrician, to get the landscape and to get the driveway guy.
[00:22:16] If you're having your contract to do all that, I'm telling you, you're paying 10, 15, 20, 20 5% more, maybe 30% more than you really should. If you were going to do this yourself now, if you're not a contractor you could then instead of having one guy, you could have your carpenter. Who's going to do mostly everything with the exception.
[00:22:35] Yeah. HVAC plumbing, electric and landscaping. Right? So you go to your main guy for your, all your main shit, and then you sub everything else out yourself. So he doesn't add in his 10, 15 to 20%. Right? So that's where you're acting more like a project manager, almost like you're on your own contractor type guy, but you're going to act as your own project manager.
[00:22:57] So that's someone to shoot out another way we do it. We bid out, we have our own internal guys, six guys in our team. We kind of know how much we pay per day for. We know how many man hours it's going to take for us to do that job. So we kind of figured that part out. Then we look at all the subs, HVC, plumbing, and electric and landscape.
[00:23:15] We take the package, we send it out to them. We then say, look, we got this job. We want you to bid on it. Everything is in there. We give them, when I say a complete package, it is an absolute line by line breakdown, complete package. You'll go back and forth a few times. You'll negotiate with these guys.
[00:23:30] You'll get them locked in. The key thing, you want to have them on the hook. You want to have them, they get their contract, your contract signed right when they accepted this job and they give you a good number and you want to get it all the permits completed because the day you close, you want to be able to take next phase permitting.
[00:23:50] You want to be able to take that whole permit package. Your contractors, your plumbers, your HVC guy, your electric guy, bring them down to the town. Ask the town. If you can get a demo permit, because generally a lot of these towns will allow you to get a demo permit like within a day or two, get your containers over at the property.
[00:24:10] Do the demo, at least get the prep, the place demoed out. So the day you get your permits completed, you can go in and start working. So that's the way we do it upfront. That's our planning process. I'm going to stop at that point, right? Just when we get the permits in. Cause the whole entire backend piece is another animal that I can, it's going to take me hours of over, but we have our due diligence process or planning process, our bidding process and permits and then we're ready to go.
[00:24:36] Right? So now I want to go over the next piece here. They want to do over the tools that we utilize. So what tools. Are we using to get our shit done? So the first thing is the software, right? That's one of the questions we get lot. Who in the hell are you getting using a software? So with us 20, 25, 26 properties in their own time and doing the renovations, and these are not small.
[00:24:59] I shouldn't say that every once in a while we have a five or 10 or 15,000 renovation, majority. Is 70, 80, 90, a hundred thousand dollars and some pieces over to, so with us, we use bill the trend, right? Overkill from some people we checked out a lot of these different systems that are out there. What I love about build the trend is that a it's mobile, right?
[00:25:19] Every single person has this on their cell phone, whether they're a sub or they work for your company full time, everybody has the app on their phone. The other thing I love about it is you can build out your packages and. Rehab permitted. And you could have every single step of the rehab process drawn out with timelines and it automatically populates.
[00:25:42] And then once you assign your contractor for that particular trade, it auto assigns him or her. Usually him, all those tasks. It's insane. The thing I love about it is all of our receipts over purchase was everything we bought. Well, we pay a bill for click the receipt, press it to the property. It automatically captures everything in bill the trend.
[00:26:05] And then at the end of the week, we just compare that to QuickBooks to make sure that the bookkeepers allocate in the right way. My contract is up front. My team members up front are allocating the prop the receipts the right way. So it's a checks and balance. We also have an, this is great. We have an every single night daily log.
[00:26:23] We created this little template every day, contractors subs under there, they take a picture of the work they did. They write up any issues. They take all the pictures, 8, 9, 10, 12 pictures of what they've done. They hit send, and it automatically sends it to myself. And a couple my teammates over here and we just, everything is like systemitized.
[00:26:43] It's the sickest system I've ever had. Bill. The trend is in my experience. It's been very good. Not. So when he goes a couple hundred dollars a month, but well worth, and we're just, by the way, scratching the surface with it. We just got build a trend in shit, not even nine months ago. So it's a work in progress, but just like the real estate investment business, where we've systematized the shit out of it, we're going to take the software, build the trend and systematize they shit out of it.
[00:27:11] That's the software. That's the main, that's the hub. That's the piece where utilizing. So you have to find something that is going to work for you. If not build a trend, what is it? Because you need to have a software system that's going to help you run things. Even if it's just an Excel spreadsheet or a Google docs, you have to have something Google docs with Dropbox.
[00:27:29] You need a process that you're going to utilize. When we first got into this. We were using Dropbox and literally paper with everything was in paper form. Now all of our contracts are online. Everything is done signed electronically. So whenever you have to do to get started, wherever you at, if you're in the start, grow or scale part of your business, you just need to get organized.
[00:27:51] And then depending on where you're at, you can scale this thing. Now we're at the scale process with this and where, so many other tools. So, like we sub out all of our jobs out here in New Jersey. We sub out or roofing in our side. Right. So I'm not going to have my guys go for the roof and start doing it.
[00:28:06] They could, it's not what they do. They don't do this on a daily basis. So we sub it out. Now, one of the things I realized, not that people, I don't want to say that people are, they're not, how do I put it? They're not being real or that they're trying to steal from you, but sometimes they're not a hundred percent honest.
[00:28:24] Right? I found in the past that I'll ask for a bid on a roof or siding and they'll come back and say, it's 30 squares and I'd find out it's only 25 squares and I'm not talking about what the overhead I'm talking. It's 25 squares. They're charging me for labor 30 and the charging me for material thirty.
[00:28:45] And so I started looking at this. I said, how there has to be a way that I could make sure that these guys, I want to keep them honest. Part of our system, partly planning phase upfront, which I wanted to get into right now, when we're in the layout design, we have a person or a team they go through.
[00:29:01] If it's a roofing and siding job, they utilize. One of these two softwares are utilized. We use on a daily it's called eagleview.com and the other one is called at sky. Estimator a dot Skyview, estimator.com. So EagleView for us, you put the address of the property into the system. It's like anywhere from 65 to $89, it's minimal for what it's going to say to you.
[00:29:22] And this system has a bunch of different satellites. It goes in and it calculates what the takeoff should be, what the square should be for the routes. And for the siding, it tells you if there's windows on the property takes the windows off. So it gives you a calculation and then it tells you if you want to buy it exactly where it's at here it is.
[00:29:42] If you want to have 5% overage, 10% overage, 50% overage, it tells you to squares, you can do so for a 65 to $89 investment, you're hiring roofers and siders. And even if you're friends with them and you've known these guys for years, just to keep them honest and on the same page, it's good to know. How many squares.
[00:30:01] It really is. Right. So utilize that. When we get that report, we have somebody that's going to be roofing and siding for us. We say, Hey, here's the actual squares of the property. We had a dumb, we had to take away the fun. Just go out there, take a look, let us know what you think and give us the pricing for labor only rip and install.
[00:30:20] We'll take care of getting the materials, or we just want you, because you're the professional with this. When it comes to roofing and siding, we want you to give us the material list. We'll take care of bidding it out because we save money. When we bid it out. If it's not your money, they'll just buy it from anywhere and they'll pay anything.
[00:30:36] And it's going to go on you. So little tidbit that we just gave you, here's a little tool that you can utilize. It's called soap. If you don't have somebody on your team, that if you don't have anybody that you can afford to pay, to do a floor plan, there's a pretty fricking cool tool that you can add onto your iPad.
[00:30:54] And this little piece it's called canvas. This little thing. If you put on your iPad, you walk into a house, you can scan your house as a 3d image, and it automatically takes that 3d image and puts it into a CAD software. That's a software that our architects utilize. Manipulate the houses. It tells you how big the wall is and square footage, and also the crap and automatically dials in and pushes into the CAD where you can give that to somebody for a few bucks to manipulate.
[00:31:22] By the way, you can go online and you could hire somebody from another country for 50 bucks. And if you give them the CAD, the file that's going to cost you maybe $30 to get from his company. By the way, the company's called canvas.io. It is. Killer tool. If you're trying to get things done on the cheap and you want to get floor plans done for a few bucks, you do that.
[00:31:45] You send that plan, you get somebody from Upwork, upwork.com who knows how to actually do do CAD. And you can have a call with them over the phone. And that could be your personal person to actually do four plans with you. Again, not as an architect, someone who just gonna give you some ideas to do a different lamp design on the cheap, like on.
[00:32:04] No excuses guys, you can get this shit done. All right. Last thing, those are the three main tools of utilize. There's a shit more of those are the three main ones that you guys started right now. The next thing I want to give you, and it's going to be the final thing. It is teammates like who are the people that you're going to have to leverage in and your different phases.
[00:32:25] I'm going to go through who they are. And I basically said, I just want to recap, right? So you have your home inspectors. You're going to have somebody who does regular home instead. You're going to have somebody who does your septic and sewer inspection. Very important, especially out here in New Jersey.
[00:32:38] A lot of the sewer lines are like infiltrated with roots and it doesn't flush the right way. So you want to get those scoped out. You want to get your someone who's going to test your water very important. know, You want to have these people on standby. So when you need them, you can just call them up.
[00:32:53] So many also, who does a tank sweep now in New York? I never had to do this. Never that it tanks. We in New Jersey. It's a big thing. You have to know if there is a burried oil tank there, even if it's abandoned and they're on gas, if there's a barrier oil tank, it's like automatic red flag mandate the buyer, who's going to buy it from you.
[00:33:13] If that thing is in the ground, they're going to get it tested. And if there's an oil issue down there, which there was, and one of the properties we bought, it can run up for that one. It was $28,000. So if I didn't do my due diligence upfront and I didn't have somebody to do with an oil tank sweep who told me there was an oil take there and then go and get a test.
[00:33:31] At first, you can get a test in New Jersey. It's not a test, it's a mandate extraction. And when the company comes out, extracting, can't do what you do in some of these other states, like in New York, back in the day, you able to get like somebody to come over and rip out the oil tank. And you're good. As soon as it's flagged boom, it's an automatic extraction and it's an automatic test and it goes right up to, I think the DC women Elliot is here and they tell them in that help the department of health and they automatically tell them if this contamination off this contamination, You have a massive bill in your hand.
[00:34:02] So you wouldn't get people who test do tank sweeps, and who also could extract those tasks also out here, which is not big in New York is so new test for radon like New York, like radon, what the hell is radon? You go through the real estate tests and write on things on there, but never have I seen a test in New York habit in New Jersey.
[00:34:23] It's older. And you want to know in the areas that you're renovating, like specifically, it's your areas, what are the tests that need to happen? Because every geographic area is going to have different new, I didn't know this crap in New Jersey oil tank sweep with a radon test. Like we never did this in New York.
[00:34:40] So when you're going into, if you're starting renovation in your state, find out what the hell due diligence you're going to need to do, and then find out who those teammates are that you should add to your team because you can. You're going to want somebody who is going to be on your team. That's accessible.
[00:34:58] That's going to be good with floor plans and architectural plans. And you are back in the day, we had somebody that was an architect and it was just the pain he has to deal with. Cause he was with a big firm, can never get them on the phone. And he basically charged her frigging attorney and I'm like, can't do it.
[00:35:12] Now, what we do is we leverage somebody who. Is an architect. Maybe he has to get the plan stamped by somebody else. We can leverage him cheaper dollar amount. He's more assessable. And he's eager to do business with you because it's like a side gig they have, and he wants to make the money. So you want to get yourself a bid architects and you want to get somebody who is a good engineer as well.
[00:35:31] Like we've had properties out here where we do the home inspection and we realize it's cracking the foundation or there's something going on downstairs in the basement it's just not structurally sound. You want to have a good engineer that you can rely on. That's good with your team that can go out to these properties and inspect and tell you and your architect, what needs to happen to make this home structurally sound.
[00:35:54] Do you want to have a good designer? This is key designer for two pieces, right? So you want somebody on your team. If you're not good at this, you want somebody on your team. Who's good with. Design layout. And I wouldn't just rely on your architect because sometimes the architects they're good with certain things, but with design, they're not the best, right?
[00:36:15] At least the ones I've dealt with it not actually like killer with design, especially these rehabs. So I have good ideas, but you want to have somebody who really understands layouts or property and how these properties should flow. And so you want somebody to assist with design doesn't need to be a designer or somebody to assist it.
[00:36:30] It's to design the layouts of these properties and that designer could duplicate his or herself as the person who does the design board boards, all the finishes inside the halls. Right? So as you're doing these homes, you're going to have certain packages you're going to create. Certain flooring and certain homes and certain kitchen servants, you want that person to package it.
[00:36:48] And so you, it's very easy when you're doing a property, they can say, okay, and use the high-end number three package for this particular house. And it's your, your light gray with your higher end kitchen and everything is outlined with materialists, pictures of it when to buy it. What the cost is only thing you need.
[00:37:06] If you're a person who does the material takeoffs to calculate how much. So it's just like a pull and push, very simple, easy to have you designed packages put together. And then of course your contract is you're going to need across the board, your GC, your HVAC guy, your roofer slash sider, a plumber and electrician.
[00:37:26] And then if you're going to like really act like a contract, you might want to start sewing out a whole bunch of different shit. Like somebody you're going to put down the floors, a finished person, kitchen designer, painter. So it really depends on how you're going to start running your business. If you're going to hire a board.
[00:37:40] One contractor, one general contractor up front, he's going to handle all that. Or you're going to act like a quasi or you'll hire a general contractor. And then just the main traits or you're going to act as the contract yourself and hire out everything. Almost like a paper contract. You have no employees.
[00:37:56] You're just hiring out all the subs. I did that when I first started doing this and I got to tell you without having a team like I have now, I was doing it all myself. And it was. I was working my ass off because every house I had 12, 13 different subs, and I didn't have a designer. I didn't have right architect.
[00:38:14] I didn't have a project manager. I was doing all this shit on my own and it was overwhelming to say the least. So in the beginning one man show, you have a full-time job. You might want to go down hiring a general contractor or a general contractor. And the four main subs, I would not recommend if you have a regular job.
[00:38:32] To go over. If you're trying to scale to go out and do this, if you're on your own, you don't have teammates and support. And then what else do we have here? Do you want to have somebody on our team? We have somebody who does our scopes of work. As I mentioned, we have somebody does our materialists. We have a project manager, which is so one of my videos, New Jersey, the guy is lost.
[00:38:50] It went crazy and just a winning go crazy. Imploded. He couldn't handle all the stress and I actually was dribbling out. I wasn't giving him hardly anything and the guy just kind of imploded and yeah, that goes to show you, he came in, I'm doing like a little cyto right here. He came in and he circumvented my usual process for hiring because he came in a different way for a different position.
[00:39:15] And. I want to get us to everything that I teach and everything that I know, everything that I implemented, I circumvented my own system. And because my, I mean, that ended up hiring the wrong guy and he lasted five weeks and quit shame on me. And we'll never do that again. So project manager is an, and then you want to have somebody you're really scaring that specific scaling rather specifically ordered your materials.
[00:39:40] And then of course your design boards and your package, and that is the front end. Of how we are getting our properties through the funnel to get them rehab ready. This is just a quick 40 minute discussion of how we're doing it. I hope you guys took out hope you guys took something from this because there's a lot more to it.
[00:40:01] I can't go in such detail in a 45 minute podcast or video here on YouTube. But if you have questions, if you have concerns, if you need more information, hit me go to my podcast light. Give me some feedback, go to YouTube, leave some comments online. You can find me on Facebook, Instagram, YouTube ensemble, BA, but if you have question.
[00:40:22] Hit them on Facebook, do a post right to me. Don't do what I am to a post. Cause I want your questions. Why can create more content from those questions to give you guys feedback? You have questions. You have anything you guys need hit me back. Might take me a little bit of time. So the best way is social media, because if it's there, I'll see it.
[00:40:37] I'll call you. I'll do something. If it's just an email. It's going to go over to my girl, Adrian, she's going to handle it. And my schedule is gonna be crazy, but I'm usually always on Facebook and Instagram. Just firing back. If you want to partner up with me, go to bill.com, check things out. We are partnering with people who are doing wholesale or partner with people who are doing fixed it.
[00:40:55] Really New York and New Jersey for the fix and flip side, because that's where I have my people. I don't want to start going into a different area and remember everything that we teach about everything. We talk about, any of the tools that we utilize, you can find them and I'll have my team put this stuff on there as well.
[00:41:11] You can find them at Billy's secret.com, Emilio the unstoppable BA unstoppable, because nothing will stop me from getting to where I want to go. Nothing. Nobody knows. Certainly I'm going, I know exactly where I'm going and it is straight to ELA. All right guys, peace out. I hope you enjoy it. I'll see you later