The reason I have chosen feasibility for the theme at the moment is because it’s a really critical part of the renovation process and a lot of people think they do it but don’t do it very well. And it can really make or break your project
Hello everyone! So I’m going to give myself a big medal for being a whole minute early. I have been very flaky the
last few weeks so I decided I needed to pull my socks up so here I am on time and raring to go. There’s a few things I’m going to talk about today and one of them is to say I’m really loving the things that I’m seeing in our Facebook
group. You lot are so creative! So I’m seeing, I think it was Tanya that was doing the gorgeous lampshade with the cow fabric, Nicole doing a renovation of her home to sell. Oh Nicole McCann you’re a rock star with your bathroom reno. So it’s been really inspiring to see what’s going on in there so well done!
Our membership is growing quite quickly we’re almost 800 members and so I’ve actually made a few changes to the rules to really try and keep the quality of the group up. One of the things I’ve done is said, please don’t sell things in here because you know like there’s buy/swap/sell groups for that stuff and I would really like to keep this group as an inspiring, as inspiration and motivation for renovators and particularly female renovators. And so that’s the first thing and the other thing I’ve done is ask please don’t be spamming the group with promotional stuff. Don’t be following people around with your phone number because that’s not really what it’s about. If you are a good fit for the people in this group and you’re helpful and kind and just generally a good person you will find that if you have a business that the right people will gravitate to you. So that’s the assumption that we’re working on.
So I’ve changed the rules and the other thing in the rules is you must have a profile picture. I know a few people have come in without it, and you must answer one question. The only reason I asked that question is to really know that you’re interested in renovating because you know I’ve been in those messy big groups where there’s all sorts of rubbish going on and I don’t like it. So I have the opportunity to control this so that’s what we’re doing.
I’m gonna talk about feasibility now because I’ve done a whole podcast on this but I just want to really talk to
you about you know background to that. I’m also going to talk about, I did some site visits yesterday and that was just so inspiring I feel really I guess energised by it. And then I’ve got something coming up next week in next week’s live so I want to just from you know promote that so that you know that it’s happening. Nothing really big but I just decided to choose a topic that was relevant to what’s going on in the conversation.
So the reason I have chosen feasibility for the theme at the moment is because it’s a really critical part of the renovation process and a lot of people I think think they do it but don’t do it very well. And it can really make or break your project. Unfortunately our style and our passion for beautiful homes will only take us so far. Unless you back that up with really strong business principles you’re not going to make money and you’re not going to build that really robust machine for producing income. As I said I’ve recorded a whole podcast episode where I’ve gone through ten points to a solid feasibility analysis but I just want to give you the big picture in this session.
And it’s really around firstly, knowing your sale price. So that’s the first thing and often I guess they start with one and then their expectations grow as they get into the job and they keep moving it up and then when it comes to sell they put a much higher price on and then it kills the sale and they don’t sell. So I really like to be really conservative with my sale price so that if I do better that’s an absolute bonus but don’t bank on it because then that builds up that emotional sort of tension that has you thinking oh it’s worth more than it than it is and that can often derail your experience.
And the other thing is it has you feeling disappointed when you get off and do get a really good price and it’s really important to manage your emotions around selling a property because a huge amount of work goes into it and you want to come out of it feeling really satisfied and fulfilled. So getting clear about the sale price and sticking to it. So you may get to the end of the project and the market may have moved well and good but don’t have your expectations move with it because that is not, it’s not going to serve you or the sale of the property.
So the other really important part about a feasibility is the budget. I was actually having a chat to a buyer’s agent yesterday and I was talking to her about the project that I’m looking at at the moment. I’m not holding out much hope because our finance is taking quite a while to get so not sure we’re going to get it in time but either way so be it. And I said to her yeah, I’m budgeted it’s 52, 700 the reno and she said “oh my gosh that’s a very exact amount” but the reality is that if you really nut out the budget well, and get really granular with it then it gives you a whole lot of power.
Now I don’t cut it too lean because you need to have some movement there, I like to leave a little tiny bit of fat in there and one of the reasons I like to do that is because I feel really good when I come in under budget. So really getting
granular with your cost to make sure that you have covered everything and that it’s a realistic budget.
And then the next thing and the third thing also a really important element of feasibility is doing a risk analysis, determining the risk factors to your project; what could possibly make it go longer, what could cost you more, what – you know asbestos is a really obvious one – but what could cause a blowout and really preparing for that. And so for us a lot of the projects we do are apartments so there’s quite a few moving parts in that we need to make sure that we have considered them all before we actually sign on the dotted line because once you do that you’re ‘in for a penny in for a pound’ as they say.
So really if you want to be a good renovator you must master the art of feasibility and it’s a problem that I do have with some of our coaching students is that their trades don’t want to give them quotes. And they say you know, he doesn’t want to give me a quote and I say, seriously if he doesn’t want to give you a quote he’s probably not the right trade for you. It may have been good when you’re working on your home but now that you are renovating for profit you need someone that’s going to be able to give you at least a good estimate of what the work will cost because otherwise you can’t run a business unless you know your costs. And the other thing I think is that I think they try it on because I don’t know any trades that can get away with not quoting or I do know one and he’s an absolute pain in the neck and I don’t use him because of that.
So you absolutely do need to be working with quotes so that you can control what you’re spending. And this is the business side of renovating and I like you, I really really love the pretty side of renovating but unless you’re willing to
match up that aspirational creative side with some hard business smarts you just can’t make money out of it and that’s exactly what we’re about. We’re about really having that amazing experience of being creative, and thinking about tiles and kitchens and floor coverings, and whatever but also doing it in a sustainable way where it becomes a sustainable business and something that you can actually build. So it’s a really really important skill.
So I’m doing feasibility on this absolutely dive of a place at the moment, it’s a mortgagee sale. I’m really hoping I get it because I’ve just had, I think because I haven’t done a project for a while I’m feeling a bit stir-crazy. And so my plan
is to get in get it done quickly and then sell it for whatever so provided it’s in profit it’s going, so that I get this new joint venture up and running. And so then we’ll be in a good position to pick up a bargain because I do think after September there will be a few properties that are out there at good prices.
I know for a fact that there are landlords holding off on selling because they’re getting job keepers so that’s sort of hoping but each that will come to an end eventually so I want to be ready when that happens to pick up the next one. And the other thing is I’m really trying to get through a project with the property circles the joint ventures structure really quickly so that we’ve you know worked out the nuts and bolts of it and and there are always nuts and bolts. One of the things is like I encountered this morning it’s different to the way we do joint ventures I have done in the past.
The people getting the loan – are they separate loans or is it one whole loan. So that’s one of the things that I’m working on at the moment. So making those decisions about about the actual structure. So we’ve got our company and trusts set up and so now the next step is the finance, which we’ve got all our info in on. We’re just really hoping that it hurries up so that we can get an offering. It’s a mortgagee sale and it’s actually going to open to the market on Saturday and so we just got a really wait and see because we can’t move until we’ve got that finance sorted.
So yesterday I did site visits. I went to three projects in the Hunter Valley and I just feel I feel incredibly proud of these women they’re women who didn’t have particularly big budgets. One in particular, or two in particular actually – Tracy and Kim have done an absolutely phenomenal job, both of them bought their properties.
Kim’s was 285 thousand and Tracy’s was 350 and both of them have done really beautiful jobs and they’ve just been absolute rock stars. And I look at them and I think you know often women in their 50s feel feel a bit like, is that all
there is to life and these women are out there living their dream and I’m just so incredibly proud of them. And so I’ll certainly I would like to get both of them on the podcast but that might be a bit of a tough gig because they’re quite I think the word’s humble, but I just feel really great about the fact that they are so empowered and really living their dream.
So the last thing I want to talk about is I’ve noticed that there was a question in the group about floor finishes, timber floor finishes. And we have been experimenting with a few different products with floor finishes, one of them is a new product that we’ve not used before that’s on a project inside our family like one of our families, our kids are doing. And so over the years we’ve had a go up quite a few different types of floor finishes so I’m going to be doing a session next week on six different finishes for solid timber floorboards. So just the ins and outs, what’s most expensive, what was the longest, and what you use for different applications, different colors that sort of thing. So that’s going to be next week’s live.
So on that note I think I’m finished and I’ll see you same time next week where we will be talking about six fantastic floor finishes for solid timber boards. See you then!