Rehab Projects Are Often Great Investment Opportunities – Why Can They Become Huge Disasters?

A rehab project is easily seen as a great investment opportunity. You are able to purchase the project at a fraction of the replacement cost. After all the cash is invested, the total cost per square foot is far below the competition. You can see an easy path to much greater cash flow after the vacancy is filled and after the rents are increased. Unfortunately, there are a ton of issues that can throw the plan off of the expected course.

A rehab project did not get in the current condition because the owners wanted a run down dilapidated apartment complex. While the situation can be and often is the result of extended neglect, the buyer must consider that neighborhoods change, crime problems develop, basic infrastructure issues become insurmountable.

Where to begin?

First, is the property in a rentable location? Spend time understanding the schools that service the property. Look at access to employment and shopping. Find out what the crime issues are on the apartment complex. Determine what crime in the surrounding area is. Check out the demographics of the area and check with local merchants, consumer, and other sources about the reputation of the area. If too many red flags begin to develop, then you may have identified a project that could resist your best efforts to rehabilitate.

Next, if the property demonstrates solid performance, look at the physical issues with the project. Are the kitchens unable to meet expectations for today’s consumers? Is the foot print to small? What changes are required to meet utility cost expectations? Does the project require central AC? Is parking inadequate? Do the units require washers and dryers in the market and for the demographic the project will serve. What about dishwashers? Are the amenities inadequate? Are the floor plans positioned wrong for demand in the market?

In the case of infrastructure issues like those suggested for review above, the right rehab plan may well be able to resolve the issues. The key considerations are putting together a detailed rehabilitation plan that resolves the issues thoroughly for rentability. If the costs begin to rise to high for the project to be viable, you will know to abandon this prospective project. However, if you can meet the project well below your affordability considerations you have identified a potentially strong performing asset.

While the considerations above can protect against a bad decision because a rehabilitation requires repositioning the project the risk is much greater because rentup may not occur as expected. Renting costs can be too great. Rehab costs may over run. Rent rates may be weaker than expected. Management issues may be greater than anticipated. In all cases, the project can become continually more challenging and lead into failure.

Technology Increases Small Business Profitability

During times of economic struggle, most small businesses end up making cuts and changes to keep their businesses in the green. From laying off staff to decreasing business travel, reducing marketing efforts and ending bonuses and raises temporarily – there are a variety of ways small businesses look to cut their expenses. At the same time, they look for ways to increase profitability – especially when operating with reduced staff. Technology becomes even more useful as small businesses strive to increase productivity and efficiency.

There are so many gadgets and technology solutions out there that it can be easy to buy more than you need, or to buy the wrong types of products that just don’t deliver the solutions your business needs. When deciding what types of technologies can help your business reach its goals, here are a few things to look for:

Communications – technology is well known for its capability to improve the ability for people to communicate with one another. Whether you’ve got employees on the road or down the hall, virtual phone systems can route calls to cell phones and keep everyone in touch regardless of location. Instant messaging and email provide quick ways to communicate with the written word and keep documentation of these conversations for future reference. Social media and networking sites provide a way to keep in touch with co-workers, customers, and the competition at a glance.

Data Storage, Warehousing and Search – If you find employees are spending a lot of time looking for certain reports, forms or other data that they need to perform their job responsibilities, investing in network hardware and software to keep track of the whereabouts of your data can be useful.

Telecommuting – many small businesses also find that there isn’t a need for all employees to work in the same office building in order to get their work done. Having employees who telecommute requires the technology to make that happen (a secure network for employees to access data they require to do their job; improved communication systems to receive incoming phone calls at their homes or on their cell phones and the ability to keep in touch with co-workers in different locations). Having employees telecommute can save you from needing a larger office space, which keeps your overhead costs lower, too.

Customer Relationship Management – having some sort of CRM software to help you manage your database of clients and prospects is well worth the investment. Many businesses will tell you the “money is in the list”; meaning the amount of money a company earns is directly proportional to the number of people on their mailing list. Some companies use software like ACT, Goldmine or SalesForce to track their clients and leads. Others have custom-built software developed to handle unique needs that can’t be addressed with existing software.

Technology makes it possible for small business to increase productivity and compete with larger businesses on a smaller budget, thereby increasing profitability. Efficiency and organization is improved through the use of appropriate data storage, search and mining, customers are better managed through customer relationship management systems, and it is possible for money to be saved when employees telecommute from home. Before investing in any new technology, identify the unique needs of your business and determine which technology will best meet your needs.

Checklist – How to Start a Small Business Online

Job seeking can be really tough nowadays because of the current economic situations that are taking place worldwide. It can be so tough that people would have no choice, but to stick with the jobs that they are capable of doing, but do not like it very much just to survive. Others that do not wish to take on stressful jobs set up small businesses instead. However, a lot people that are too used to the daily jobs do not know how to start a small business. Those who may know how to start a small business might have budget related problems, as setting up small businesses requires some investment.

These two problems can be bypassed if you learn how to start a small business online instead. The great thing is that learning how to start an online business isn’t as complicated and the investment can be minimal. With these basic steps, you can start your very own business that can grow continuously.

Determine the Type of Business

Your success rate in your future business depends on what type of business you’ll set up. Find out what your target audience you wish to attract and what kind of products or services are you most comfortable in bringing to these people. If you don’t have products or services of your own, you will have to resort to finding an affiliate. Choosing an affiliate that is in your interests will let you understand your audience much easier thus making your goals quicker to accomplish.

Prepare your Website Tools

Your website is the face of your business and for it to standout, you need to design it in such a way that it reflects the theme of your business and the products and services that you are bringing to your visitors. If you do not have experience in web design, you can always find a template online that bests match your business use one of the many website generator tools that are available free.

You will also need an autoresponder, which will serve as a tool to keep in touch with all the members that become a part of your online small business. At the same time, it serves as an inexpensive user database that can be managed with ease. The autoresponder will help create a registration form that members can use to become part of the business. Its primary function is to bridge the gap between your site and the actual affiliate programs that serve as your source of income. Each website tool should have a comprehensive documentation including the affiliate programs themselves so consult those guides in making sure every component integrates to your business properly.

Once your business is all set up, test it, and make sure that all interested members can go through the steps in joining your business smoothly. If you never set up an online business before, you can always check out the other businesses and see their flow. Then just take note of their style and incorporate your affiliate or products. Once you understand how to stat a small business and your business is up and running, you can proceed to the marketing to make it profitable.