Season 1 · Episode 5

Burn Your Boats Episode 5 - Beginner Mistakes Part II

Digging Deep into the Underwriting

Burn Your Boats Wealth · David Shaw & Clark Lunt

February 26, 20241h 17m

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Show Notes

Summary

In this episode, Clark and David discuss the process of buying and renovating investment properties. They emphasize the importance of working with experienced realtors and wholesalers who have their own investment properties. They also stress the need for thorough underwriting to determine the true costs and potential profits of a property. Clark and David provide tips for analyzing properties, making offers, and understanding after renovation value (ARV). They also highlight the significance of obtaining permits for renovations to avoid future issues. Overall, the conversation focuses on the practical aspects of investing in real estate and the importance of making informed decisions. In this episode, David Shaw and Clark discuss the importance of considering neighbors and surroundings when buying a home. They emphasize the impact that neighbors and the surrounding environment can have on the desirability of a property. They also highlight the pitfalls of superficial renovations and the importance of upgrading older homes. The conversation covers common issues with plumbing and electrical systems in older homes, as well as the problems associated with vinyl siding and windows. They stress the importance of creating a fenced-in backyard for tenants. Finally, they discuss the benefits of using a general contractor for renovations.

Takeaways

Work with realtors and wholesalers who have their own investment properties
Thoroughly underwrite properties to determine costs and potential profits
Analyze properties based on recent sales, square footage, and property type
Stick to your numbers and don't let emotions drive your decisions
Obtain permits for renovations to avoid future problems Consider the neighbors and surroundings when buying a home, as they can greatly impact the desirability of the property.
Superficial renovations may look good on the surface, but it's important to address underlying issues such as plumbing and electrical systems.
When buying an older home, consider the cost of necessary upgrades and renovations, and focus on properties in A-class neighborhoods.
Avoid homes with galvanized plumbing and cast iron pipes, as they can lead to costly repairs.
Invest in proper landscaping and a fenced-in backyard to create a more desirable living environment for tenants.
Use a general contractor to oversee renovations and ensure a smoother and more efficient process.

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