I spent a few minutes with Eddie Gant, one of the most active rehabbers I know. Eddie is a pro when it comes to dealing with rehab properties, so there’s no one better to answer some of the most frequently asked questions we get about the topic here at the MyHouseDeals.com offices.
When looking for properties, are there any types of neighborhoods that you stay away from completely?
Not overly but I guess if it’s the worst of the worst and there’s burn outs and junk cars in the street and gangsters walking up and down, I will occasionally shy away from those. I will occasionally buy them, but I buy them low. I mean we’re talking under $10,000; I will buy them, but I’m a little more careful with them than I used to be.
Is that because you are afraid that during the rehab some things may get stolen?
Yeah break-ins, theft is the big one. People will steal everything. It’s all about the theft.
Do you install some sort of security system to keep your property safe during the rehab?
We normally don’t put security systems in them until they’re broken into. I’ve never had a house only broken into once, it’s never happened. If they come once, they’re coming back. That’s not an exaggeration. If they break in the first time, they’re definitely coming back. So we put the alarm in, they come back the second time, and usually the alarm goes off and they scatter. They don’t steal anything, but you have to replace the door or the doorframe or whatever.
What do you think are the three biggest mistakes that beginning investors make when they’re trying to rehab and resell property?
Foremost is that they don’t manage their contractors effectively. Also, sometimes there’s a tendency to start NOW because you want a house so bad, but you pay too much to try and get the deal. Number three, is that they don’t utilize other resources to help sell their houses. You should spend your time trying to find your next deal rather than spending your time doing something that you can get other support team members to do, like the sales and things.
Sometimes people try to do too much work themselves. Don’t be out there painting cabinets and putting in countertops yourself, be looking for your next deal. Pay somebody to do that, allow for it and then you be looking for your next house.
If you were to start over in real estate investing, what would you do differently?
I’ve been asked that a lot. I used to not have a real good answer but I think I do now. I do not have a real estate license, and I’ve been in this business 8 years. I would probably have gotten my real estate license early, and I’m probably eventually going to get mine.
Why is that?
So I can list my own properties, save a little commission, have access to all the comps and MLS, and even get referrals for retail deals that we can’t buy because the sellers owe too much.
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Eddie also owns a mortgage company and a hard money lending company. In short, Eddie knows the real estate investment business from the inside out. He’s familiar with and teaches all types of real estate investing. Eddie’s specialty is rehabbing and reselling properties for maximum profits; since he focuses almost exclusively on rehabbing
This is an excerpt of the interview I did with Eddie “Tips on Rehabbing for Maximum Profits”
These are some of the questions I had for Eddie. Now I’m curious… If you had access to some of the top real estate investors in the nation, what questions would you ask them? Share them by leaving a comment below. Dig deep and make it good. I just may be able to get you the answers you need…
Until next time,
— Doug