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Student Rehab Story, 5204 Wesley Road - Week 1

This is going to be a great rehab - so keep your hands in the car at all times, make sure any loose items are secure, please wait until the car has come to a complete stop before exiting, and <said in my King’s Dominion roller-coaster attendant voice> “Enjoy the ride.”

Mmmm…just look at that sweet piece.  Does that look like opportunity, or what?

My student, Joann; a mother of three girls,  a wife, and now part-time real estate investor, picked-up her very first rehab after joining our investment club less than 3-4 months ago.  And as her coach and mentor - I am proud as a peacock.   I’d hate to play poker with Joann, because she strikes me as the quiet calculating type; and unflappable at times when others would crumble.

Well, we’ll just see over the next few months how Joann keeps it together, cause’ folks - this is one serious rehab!

Address: 5204 Wesley Ave, Gwynn Oak, Maryland 21207  Google Map
Purchase Price:  $50,500
Rehab Amount: $80,000

Description:
This craftsman style house was purchased from a wholesaler - who tried to pull a few fast one’s on Joann, but with my help, she successfully navigated through the bull-hockey being thrown by the wholesaler.  Look at the pictures and you will see the house needs everything, including many dumpsters to haul away all the trash left by the previous owner.

The house has an unfinished full basement.  On the main level; living room, dining room, very small kitchen, bathroom, and bedroom.  Walk up the stairs to the second floor and you’ll find a dormer attic wiKitchenth two small bedrooms.  So that’s 3BR / 1BA.

TIP:
Always be ready to walk from a deal as you should always remember there will be another coming!  If you feel like someone or something in the deal stinks like a skunk, then the whole deal stinks!  You’ll find that some investors/wholesalers like to pull last minute stunts that increase your costs, and their total profit.  It’s called the “puppy dog close.”  Why do you think those pet stores in your local mall let you play with the puppy before they tell you how much cute little Fido costs?  Because they want you to fall in love with that cute little pooping ball of fur before they slam you with the bill only after you already have visions of little Fido cuddling up next to you in bed!  That’s what this wholesaler tried to do to Joann.  Folks, never fall in love with a deal!

The Plan:
We are going to turn this craftsmen out!  We’re talking full-gut rehab back to the studs.  The budget allows for all new everything, with the exception of a finished the basement. We’re gonna tear out walls, add a big dormer, and totally change the functionality of this house to bring it into this century.  Just wait.  You’ll see.  This house is going to be an absolute stunner!

So here’s the pictures of Joann’s very first day of demo!  Enjoy, and check back next week for more progress.

Wesley Ave Set 1 Click this picture for more photos

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  1. 10 Comment(s)

  2. By Joseph Chilcote on Aug 1, 2008 | Reply

    Holy Hanna, what a mess! I don’t know if I would even tackle this one. An 80k rehab…. visions of knocking it down and building new would be dancing through my head. True grit! I am waitng for the progress pictures. I almost can’t. I would like to see this one up close and personal. Joann, I’m proud of you! When the darker shades of progress come, fear not, you are in good hands with Craig Fuhr. He’s a great guy and an experienced teacher. Blessings. -Joe

  3. By Russell on Aug 1, 2008 | Reply

    Damn!!! JoAnn you are my hero. Seeing this motivated me to not shy away from the gut rehabs. Wishing you much success.

    Russell

  4. By Dee Statham on Aug 1, 2008 | Reply

    This is a great story. Please keep us posted on the finished product. As an agent, I will attest to the credibility of both Craig Fuhr and Steve Cook. I’ve attended Steve’s seminar and he teaches ethics as well as a solid plan for rehabbing. Like me, Craig is a student of Steve’s and one of the nicest guys I’ve ever met. Stick with these two guys and trust me, you will do well. Wish I could say the same for some of the other teachers out there!

  5. By Michele Galloway on Aug 2, 2008 | Reply

    Congrats! JoAnn.

    I hope to follow in your footsteps. You and Russell seem to be making a lot of progress. Hope to join you soon.

    Mi

  6. By Craig on Aug 2, 2008 | Reply

    Michele

    You will get there. Just remember the 3 M’s. Mentoring, Marketing, and Making offers. You’ve already taken the first step, and as my student I thank you - now we just have to get to steps 2-3!

    Craig

  7. By Craig on Aug 2, 2008 | Reply

    Dee:

    That might be the nicest compliment any one has ever given me. Thank you so much for taking the time to write such kind words.

    Craig

  8. By Craig on Aug 2, 2008 | Reply

    Joe

    That’s very kind of you to comment! I was just out having breakfast this morning with my Ace-Contractor, and we both agreed that this house is going to be perhaps the nicest we’ve done so far.

    You’ll see. Stay tuned.

    Craig

  9. By Bongi on Aug 5, 2008 | Reply

    Joan,
    Good luck, this is totally a huge challenge. I am looking forward to the progress. It will give many of us the motivation to dive in BIG!!

    Bongi.

  10. By Leon on Aug 5, 2008 | Reply

    I saw the purchase price and the rehab amount, but I don’t remember seeing the ARV. Could you include that figure too?

  11. By Ned Carey on Sep 21, 2008 | Reply

    I am stunned, I walked away from that deal. Shame on me.

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