Cherie Barber (renovation tips) Live

Is anyone going to the Cherie Barber Live seminar in Brisbane tomorrow night?

We got two tickets for free and I work in the area so thought we'd pop in. We have a vacant IP at the moment so good timing. Hopefully we pick up a few tips...

 

Awesome seminar guys. It really drove home the importance of active investing and manufacturing equity instead of just being passive and relying on market growth. A very smart lady...

Another free seminar that was well worth our time.

 

I went to the one in Newcastle a few months back and found it excellent. She gave away lots of tips and ideas (without too many secrets) and only about minutes of spruiking at the end of the 2+ hours

 

Personally, I think her renovation material is fantastic. I have it.

If someone wanted to specialise as a professional investor in the area of renovations to flip for profit, I would be studying her course and approach.

 

We love watching her flipping show.

 

what info is worth getting? book? i dont want to have to sign up for a course
she definitely knows her stuff but i do not agree with her styling!

 

I was hoping someone would ask. I will post my notes over the weekend.

Need to sleep now. Trying to buy a house tomorrow! Fingers crossed...

 

Can anyone share what is the name of the Travertine look alike tiles she recommends using. I need to buy some tomorrow and a complete and utter novice at this.... Or any other tiles you would recommend for a 100% stock standard IP kitchen reno back panel. TIA!

 

whatever is on special at bunnings

 

I've leftover got mosaic tiles you can buy off me for a cheap price.... they are in Epping/North Epping Sydney. I don't need them (and they look better than this pic suggests!)

 

... and try asking them to match trade price. You never know...

 

My notes:

Cherie's High Level Formula:
1. buy un-renovated house preferably in the cheaper end of town. She is not a fan of units
2. cosmetically renovate it
3. get property revalued
4. rent at a premium above suburb average. People will pay a premium for a premium look
5. hold for capital growth
6. buy 1 property each year for 10 years

Then general comments:
- 10% of property value (not what you paid) is the budget for her renovations
- partial renders can make a massive difference eg. product called rock coat that you can add paint to. This makes the painters job redundant saving cost
- pour-on is a product you can use to "make driveways". Distribute and water in!
- when landscaping relocate plants before buying anything
- up-cycle/reuse ANYTHING on the property if possible
- when at Bunnings look for "project packs". eg instead of buying kitchen handles individually for ~$9 each you can buy a pack of 10 for around $19 each.
- look at buying tiles from tile factories instead of tile showrooms or tile resellers

Cheries Process:
1. Get strategy right
- from right suburb through to the correct structure (eg. personal, business or trust)
- buying in personal name you should have asset protection
- moving personal purchases to trusts incurs stamp duty so get it right

2. Pay right price for the property
- beware of median prices as suburbs have good areas, even streets do

3. Know how to do thorough research
- overlays, searches etc
- due diligence checklist

4. know what conditions to negotiate on and how
- minimal deposit
- never settle early (use early access for trades quotes and planning)
- get immediate access prior to settlement
- insist property is free of goods and chattels

She then spoke about her offer template which I thought was a great idea. The template consists of several columns. More often that not they will want the highest offer which grants you the conditions you want.
- first column is low price and a few conditions
- second column is medium price and multiple conditions
- third column is high price and most conditions

5. Know which changes add real value to the property. She didn't elaborate too much on this but she touted knowing exactly how the bank valuers determine value which is what they gear towards. Paint and render make the most difference.

6. Know how to project manage to save money:
- have both an indoor and outdoor crew
- do whole house at once
- draft construction project plan for both internal and external works which includes tasks, trades person, date started, date completed and cost

7. Know how to find, treat and retain good trades people
- renovating is a cookie cutter approach so try to retain good trades
- she buys them coffee, gives praise, and rewards with a gift voucher at the completion of a job
- pay them on time!

8. Know how to sell/rent for the highest return
- this includes staging the property

 

Thanks for sharing Lenny

 

Great info Lenny, thanks for sharing.

Did she say turn around ASAP. Or mention living in the property while working on it. I would think quickest turn around living else where is best

What's this about? ? Is this the offer before purchase? Getting the previous owner to do work before selling?? If i was selling id have no interest in doing your dirty work for the sale

 

The offer template sounds like a bit of a multiple choice offer.

For example - you say to Seller you can have A, B or C
A. $400k unconditional, 30 days settlement
B. $410k conditional on 30 days finance, 30 days settlement
C. $415k 30 days finance, 30 days settlement, 15 days early access, access with 24hr notice for quoting etc at all times.

 

That's exactly it. Incentivize the vendor so the more cash they want, the more conditions they'll have to agree to. I like the idea of giving the vendor a choice but the more $'s they want, the more benefits I get so win/win.

Here's a few more tips I've picked up from her free DVD and vids;

1. Have a very detailed program/Scope of Works
2. Detailed budget of all costs
3. Timeline and Deadline, stick to them.

• Scope of Works for project and each trade/builder. Always email so there's a paper trail.

• Add off street parking in inner city by removing 'dead zones' (useless area out front, see pic below)

• Ensure builder is paying for rubbish removal, they'll pack it better than if you were

• Treated pine for outdoor deck instead of hardwood, half the cost.

• You should also always go to tender and get a number of quotes, using the first quote to ensure that everyone is quoting “like for like” on a line-by-line basis.

• Request copies of delivery dockets (not the invoices) and put it in the contract- ensures builders are using what you're paying for.

• Buy tradies lunch so they don't have to leave the site.

• Cement render the front with Rock Coat to save $$$'s on a painter.

• Laminate or engineered floorboards, $36/m2 filly installed. Wooden ones cost $75-$100m2 not incl carpenter at $50/hr.

• Put up little laminated cards of what's been done to each room in case agent doesn't say or forgets. "Key inclusions are X,Y,Z"

• Soft closing cabinetry in kitchen makes them play with it and interact with T heir surrounds

• Check local council register of reno's approved/rej in recent years and see what they would be more inclined to go for.

• Always check credentials of subbies, ask for written quotes and timeframes.

• Look to add off street parking. Add shade sail. Fabric is permeable so don't need council approval.

• Double shower doesn't cost much more but does give higher return as gets that 'wow' factor.

Adding car space by knocking down the retaining wall

 

Love that wardrobe/bedhead. Super cool!

 

Hi. Her philosophy was Reno and hold for capital growth. Reno for 6 weeks full time or 12 weeks part time. The decision about whether to live in the property or not while renovating would probably depend on the renovation itself. I've done it before and it's not fun, but if it's only for a short time some may brave it.

Her offer template was just about making several offers that contain different prices and conditions. In her case she would always prefer access to the property prior to settlement so she can plan work. There no expectation for the seller to do anything. She has specific legal contract templates she used in order to gain early access, and sometimes she will pay higher in order to have this condition met.

Hope this helps.

 

Awesome @House . I'm yet to watch the free CDs.