- Work out your budget.
- Draw up your key path method.
- Draw your vision. Seeing it with your eyes can help you remain focused.
Remove All Obstacles
Your budget and time-frame will be ruined by any delay or hiccup in your path. These two tools are the most crucial in the toolbox and should be handled together – ensure you don’t neglect one in favour of the other.
And the third important advice is, get your pencil and paper and start drawing. This means creating a sketch of how each phase of the project will be constructed. Even if you are not good at drawing, a visual representation of your project will help you focus and feel motivated.
Visualisation is Essential
You don’t need to draw every phase of the project like an architect would. But try to build it on paper anyway you could. You could end up looking at plans all day and still won’t be able to figure out the processes and the time it may require to finish each phase.
Don’t Forget to Budget for Profit
Follow this standard formula for renovation for profit: a renovation budget of 10% of value of the property prior to renovation. For example, if the property’s value was $300,000 you shouldn’t undertake a renovation that would cost more than $30,000.
Use these tips to determine whether a property you are considering to renovate for profit is a good buy, how long the renovation would be finished, and the cost and profitability.
For prospective renovators, it would be smart to chart sales and perform the exercise on paper numerous times before purchasing your first project. A property with a low price because it is held together by dubious repairs and fixes would prove very costly if it needs a complete renovation.
If you practice discipline, renovation for profit and dealing with the process can be worthwhile and profitable. Remember – emotion or ego has no room in this process.
Don’t make a decision in a hurry without taking the time to take the above tips into consideration.
You can’t predict the future but you can anticipate what the future holds.