Colin Nichols Rehab Deal

Rehab Details

Property City: Winnipeg
Purchase Price: $155,307
Repair Costs $99,775
Sale Price: $292,000

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Case Study

How did you find and structure the financing of this deal?

The financing of the deal was entirely my own where I used the equity in my house and a line of credit to pay for the house. When the deal was done and the bank refused to give a traditional loan on the property they eventually gave me a homeowners line on the house. The money the bank loaned us against the house was used for the rehabbing the home.

Provide a summary of the repairs and improvements you made to the property.

The house was a complete gut minus a few walls. The house had to be reconfigured to make it a functional single family dwelling. The three bathrooms and the three bedrooms all had to be redone. The kitchen, dining, and living room all had to be gutted and redone top to bottom. The electrical and mechanicals had to be upgraded and brought up to today’s standards. The exterior required brand new siding and all the windows needed to be replaced. The landscaping was not even salvageable and required seeding a new lawn, fence and two new decks. The bones of the home was the only thing we did not touch. The entire house went through an extensive upgrade.

How did you find a buyer for the property if you sold it?

We found our buyer through an open house our realtor put on one weekend. The house was on the market for five days and was sold on the sixth.

What are some of the major lessons learned that you would like to share with other students that they can learn from?

Lessons learned from this ordeal was to not try and do everything yourself. The project did teach me that despite learning as you go, you need help and hiring help not only speeds up the project, it reduces your holding costs on the back end of the deal. The bookkeeping should also be worked on right from day one and kept up to date daily but at the worst case scenario, a weekly basis. The budget can get away from you quickly so keep on top of it especially if you are working in your business as a technician. The other important lesson learnt from this first rehab is to know your numbers (arv) and don't let the realtor pressure you to make a bad deal but listen to them as they generally do have valuable information to give you.

Shout Outs & Testimonials

The FB coaches helped us out in a big way. They taught me to be persistent, make lots of offers and to make sure the numbers always worked for the deal before accepting. The other important lesson was to adjust the estimator for your market as it can make all the difference on making the deal or not. I would like to make a shout out to coach, Darlene Smith to give the push to get over the minor humps in the business and to move onward to get the deal done. One little tip I would like to hand out to the FB family is on one landscaping idea and the prevention of a costly demolition. When you have a set of exterior stairs that you are not going to use anymore (second set from a duplex) you can just change it into a flower bed. The process is very simple and practical. You first line the stairs with a waterproof lining on each run of the stairs. Now you use interlocking block on the edges of each stair to bring it up to the run of the next stair. The blocks still need to be secured to the stairs and each other by some rebar and some PL. When complete it has just saved you extensive demo. Instead you have a new landscaping feature.

Before & After Photos