Most of our investors are focused on their current work. They own a business or practice or have a profession that rewards them for their expertise and hard work. Many of these individuals see the potential in real estate, but don’t necessarily want to divert time from their current job or business to learn a new discipline. They need to be able to invest in a hands-free arrangement with a real estate investment company that they can trust.
This kind of relationship avoids much of the time and risk associated with starting from ground level, eliminates the difficulties with property acquisition, unpredictable rehabs, tenant calls, collection challenges and midnight maintenance hassles!
Our process at The Peak Group allows investors to stay focused where they already excel AND to gain the huge benefits available in real estate investment.
Here’s how our turnkey process works:
Our company goes out and acquires rental properties in need of repair in appreciating C+ to B+ neighborhoods. They are mostly single family residences, but two to four family residences are in the mix as well. We purchase listed properties, properties from wholesalers, direct from motivated sellers or from investors wanting to liquidate their holdings–really, any way we can get them.
The next step is rehab. Many investors are familiar with the term “rent ready.” To us, “rent ready” means that it is legal to move into. It describes the minimum level to which a property is improved prior to putting it on the market for rent by typical investors. Our belief is that improving the property to the level that a homeowner would be attracted to it is a better goal.
Two Phase Approach to Home Rehab
We address two major phases with every property we rehab. The first looks at what we call “the Big 5.” The second addresses the finish-out. The Big 5 refers to the five major systems of a home that we evaluate and, if necessary, repair or replace in every home: the foundation, plumbing, electrical, HVAC and roof.
Foundation: Our north Texas soils tend to expand and contract, a lot! Often this impacts slab foundations. We have our own foundation company. They are often the first ones on the job because you’ve got to get the foundation right, first!
Plumbing: Some of the time foundation repair causes plumbing problems. Pipes can break when the foundation is put back in place. We do a pressure test and video test of the pipes to ensure they are fully functional while they’re easy to access.
Electrical: We evaluate the electrical service, panel and wiring to ensure there are no dangerous situations. Later in the finish phase we replace all switches and outlets to complete the electrical system.
HVAC: Our licensed HVAC repair people test both internal and external heat and air conditioning units to ensure they operate to specification. If not, they are either repaired or replaced.
Roof: We check out the roof to ensure there are no leaks and no hail or wind damage that would shorten its effective life. We also check vents, chimney caps and any other common problem areas.
With these major areas addressed we move to aesthetics! Our finish-out provides an up-to-date look from the street, including landscape cleanup. If the existing brick is attractive we will paint only the trim, soffits and siding. In some cases, however, we paint both the brick and the trim in current, complementary colors.
And in the interior of each home we use:
- Attractive vinyl plank flooring (which looks just like wood) throughout the home—this saves the
investor money by eliminating the need to clean or replace carpet and it’s very easy to repair, a
piece at a time, if necessary.
- Granite counters in the kitchen and bathrooms along with under-mount sinks and brushed
nickel hardware—very current and up-scale compared to other rentals.
- Complimentary wall and accent colors—we stay current with design trim and use a color palate
that is widely desired by tenants.
- Brushed nickel light fixtures—and, as mentioned previously, new outlets and switches.
- New black or stainless steel appliances—they complete the kitchen look nicely.
Our process leads to quicker cash flow for you. Here’s how:
Faster leasing or tenant placement: Because the property looks better than most or all others
available, tenants say, “I want it!”—quickly!
Better tenants: Because of this demand, our property managers can screen for better quality
Higher rents: Those same tenants are willing, even happy to pay more because they’re getting
more. It is common for our homes to bring in $100 more per month than their “rent-ready”
Longer leases: Tenants who like where they are stay longer!
Lower turn costs: When it’s time for a new tenant or to sell the property and buy in another
area, the costs to make it ready to lease or sell are minimal.
All of our construction/rehab efforts provide our investors with a solid performing asset and their tenants with an attractive, updated home!
Attached is a video with owner and President, Ryan Bowers and owner and Director of Field Operations, Todd Bowers. Todd and Dave, one of our contractor team leads, go inside a house in Saginaw just after acquisition—and it’s a mess! Later, you’ll get to see the finished product. What a transformation!
Posted by The Peak Group on June 4, 2018