For lead generation, we have a unique marketing program that generates houses for us to buy before they hit the open market. We work regularly with Wholesalers, Brokers and Top Real Estate agents, and target distressed as well as REO Properties. This lead generation marketing program drives the necessary incoming phone calls and emails to be able to “cherry pick” the houses we really want and the ones that are most profitable.
Once a viable house lead is generated, each property is fully vetted both physically and financially to determine viability in producing profit. The vetting process includes the following:
Location and Comp Analysis:
Comps are pulled and sold houses are reviewed to gather a range that this house can be sold. To pull comps and gather location analysis, we use local top sales agents and data services to generate a report on subject property. We also review crime statistics in the area, drive the property various times of the day and view the overall general nature of the area.
Current Condition of Property:
An analysis on the condition of the home is completed which may include plumbing inspections, roofing inspections, foundation inspections. As needed, appraisals’ or BPOs are completed prior to purchasing the home.
Cost of Acquisition:
Nationwide uses templates that determine the costs of acquisition which include closing costs, insurance fees, property price and other misc expenses such as plumbing inspections (if needed). Our target ARV is 60 – 70%.
Cost of Repairs:
Nationwide uses templates that calculate the costs of repairs. This includes all known costs on current projects down to the dollar per sq/ft. for labor and materials.
Following Initiation, a COMPLETE Scope Of Work (SOW) is completed. The scope of work is VERY thorough in that ALL material is known down to the SKU level before ANY work is begun. Included is a Project Schedule of contractor activities along with a Payment Schedule which are reviewed and signed off by the contractor.Finally, all contractors are required to be licensed, have insurance and sign a lien waiver. Copies of these documents are kept on file.
During execution, all senior contractors report to me and are instructed in the highest quality of workmanship. Pride of workmanship and ownership is required on ALL projects for the company. I keep a primary and a secondary for all tradesman in the event that a tradesmen is unable to complete a job.
During C/M, the project is watched over and maintained by multiple team members including myself. There are contractors, designated project managers and senior contractors who share the workload and cover as needed.
All projects have a clearly defined set of rules which include inspections and walkthroughs both from within the company and by the buyer’s inspectors. Any items found, are recorded and corrected a.s.a.p.