Section 5 Quiz

Quiz Summary

0 of 23 Questions completed

Questions:

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading…

You must sign in or sign up to start the quiz.

You must first complete the following:

Results

Quiz complete. Results are being recorded.

Results

0 of 23 Questions answered correctly

You have reached 0 of 0 point(s), (0)

Current
Review
Answered
Correct
Incorrect

Question 1 of 23

1. Question
How do I know what to fix up when I am inspecting a property? (select all correct answers)
- Pick the best trends from Instagram
- Look at surrounding remodeled properties
- Decide based on my gut instincts no matter than budget
- Keep my ROI (Return on Investment) in mind
- Assume Buyers will want a well-done, fully remodeled property
Correct

Incorrect
Question 2 of 23

2. Question
What are some ways to gather information about expected features, finishes and upgrades? (select all that apply)
- Look at recently sold renovated comps in the area
- Look at luxury magazines for products
- Go to model homes of the same price range and get their Standards breakdowns
- Visit open houses in the area
Correct

Incorrect
Question 3 of 23

3. Question
What is a big consideration when deciding your SOW? (select correct answer)
- How steep do I need to buy to do all the expected updates/renovations and also make it POP?
- What the most I can pay and still make a 10% profit if I do the least amount possible?
- Where can I cut down on my numbers (like commissions, days on market, renovation costs) to stay on budget?
Correct

Incorrect
Question 4 of 23

4. Question
TRUE OR FALSE: It’s OK to buy and renovate based on trends and my desire to do a bunch of luxury design finishes because the Buyers will love it too and pay a premium
- TRUE – Buyers will be really excited about a more designer finish, so my budget and profit will just naturally follow
- FALSE – Buyers can be really excited about luxury/designer finishes, but I still have to stay on budget and protect my profit
Correct

Incorrect
Question 5 of 23

5. Question
When estimating SOW in a changing market, which of these applies? (select any that apply)
- I need to be one of the best looking houses in the area and stand out from the other ACTIVE properties
- I don't need to upgrade any major systems because I totally remodeled the interior cosmetics
- Buyers will take into account the cost of any high-ticket items that may need to be replaced in the near future (AC, water heater, etc)
- I can use comps from 6 months ago and just do whatever they did
Correct

Incorrect
Question 6 of 23

6. Question
What are the items that are basic cosmetic upgrades? (This could be considered “rent ready”.) Select all that apply:
- Paint
- New cabinetry
- Carpet
- Door hardware and hinges
- Water Fixtures and sinks
- New Roof
- Keeping some existing materials / repurposing
- Light fixtures and fans
- Adding an addition to the back
- New Cabinet pulls
- Cleaning up the curb appeal
Correct

Incorrect
Question 7 of 23

7. Question
What would a light remodel include? (Select all that apply)
- New Cabinetry
- New Flooring
- Addition to the house
- New Roof
- New shower surrounds + updated plumbing
- New Countertops
- Changing the layout of the house
- Adding a backsplash in the kitchen
- All new plumbing throughout the entire house
- Updating some of the lighting + switches
- New doors, trim and baseboards
Correct

Incorrect
Question 8 of 23

8. Question
What would be the items that would be considered a major renovation? (select all that apply)
- Removing soffits (and reworking ducting, wiring, plumbing as necessary)
- Adding square footage with an addition
- Moving walls (and reworking ducting, wiring, plumbing as necessary)
- New flooring
- Having a new roof installed
- Updating the wiring throughout and upgrading the electrical panel
- Updating plumbing, septic, and/or water heater
- Adding new windows
- Having a new HVAC system installed (and any new ducting needed)
Correct

Incorrect
Question 9 of 23

9. Question
What are the major mechanicals and big ticket items we need to think about with a project? (Select all correct items)
- Roofing
- Plumbing
- Foundation
- Countertops
- Windows
- HVAC
- Fencing
- Water Heater
- Landscaping
Correct

Incorrect
Question 10 of 23

10. Question
What are some of the advanced types of renovations? (select all that apply)
- Fire damage
- Changing windows
- Foundation issues
- Changing layout / adding additions
- Mold Damage
- Adding block wall fencing
Correct

Incorrect
Question 11 of 23

11. Question
On your FIRST flip/s, what are the ways to get an idea of the repairs and renovation work needed? (Check all that apply)
- Get an inspector to inspect the property and walk it with you afterwards to show you their findings
- Look at the pictures and guess the price per square foot for the fixup costs
- Walk the property with a handyman and let them know your thoughts on what you think would look good
- Walk the property with an investor friendly GC and show them pictures of comps, your ideas and inspection
Correct

Incorrect
Question 12 of 23

12. Question
What are two ways a General Contractor may estimate your project? (select the two that are correct)
- Cost plus markup (Cost of materials plus a 10-20% markup)
- Monthly salary while they're rehabbing your project
- They normally price per hour
- Lump Sum Bid (Overall figure for doing entire project)
Correct

Incorrect
Question 13 of 23

13. Question
Select 6 places you can find GC’s and trades:
- Asking for recommendations in Facebook groups
- Google search in your area
- Yelp.com
- Local REIA recommended vendors
- Calling builders in Luxury Magazine ads
- Supply stores bulletin boards
- Asking other contractors
- Bathroom stalls at a dive bar
Correct

Incorrect
Question 14 of 23

14. Question
What are some questions to ask a potential GC? (select all that apply)
- License information
- If they stay within a certain "territory" / area of town
- Who they bank with
- How soon can they meet at the project
- Do they work with other investors
- What is a "normal" project for them
- Do they charge for a bid
- Where they earned their license
- Do they have subs to bid out the major systems
- Can they provide references and pictures
- How do they handle going over schedule
Correct

Incorrect
Question 15 of 23

15. Question
What are contractor RED flags?
- Agrees to work with you but is really hesitant about it
- Has a girlfriend
- Doesn't communicate well and keeps rescheduling
- Offended that you're asking for references
- Answers his phone while on a jobsite
Correct

Incorrect
Question 16 of 23

16. Question
Why do we NOT HIRE and QUICKLY FIRE any RED FLAGS? (Select all that apply)
- Because if that's who they are in the beginning, it's only going to get worse
- Because their bad attitude will be bad for the work environment
- We don't need to really be this strict; just keep putting up with it if they have done some work
- Because the stress will make the project even worse and we should have backups ready anyway
Correct

Incorrect
Question 17 of 23

17. Question
What are contractor GREEN flags? (check all that apply)
- They seem helpful from the getgo
- They communicate well
- They have a girlfriend
- They are eager to work
- They have a brand new truck
- They don't make you feel dumb if you ask simple questions
Correct

Incorrect
Question 18 of 23

18. Question
TRUE OR FALSE: If we find a good contractor, there’s no need to get bids from any others.
- TRUE – If we get a reasonable bid and they have green flags, there isn't any reason to get any other bids
- FALSE – We are always looking for good contractors and having a few bids gives us a range, experience and backups
Correct

Incorrect
Question 19 of 23

19. Question
TRUE OR FALSE: A bid that includes everything in one lump sum is the best way to go for fix and flippers.
- TRUE – That way we don't have to worry about going over budget on the renovation and not worry about knowing the cost of materials and labor
- FALSE – We may actually be overpaying and it's important for us to know the cost of materials and labor with an itemized bid
Correct

Incorrect
Question 20 of 23

20. Question
Why do we keep an inspection period in our purchase contracts when making an offer on a potential project? (Select all that apply)
- To read the national news about the housing market
- To have time to get multiple/all bids
- To see what our friends and family think
- To meet with an inspector
- To talk to our potential lenders about a deal and get their thoughts as well
- To run our comps and numbers thoroughly again
Correct

Incorrect
Question 21 of 23

21. Question
What options do you have once you complete an inspection period and get your bids and inspection back? (Select all potential options)
- Stick to the same purchase price no matter what because you want the Seller to know you're serious
- Run your numbers again, confirm they're correct and move forward to closing
- Run your numbers again, see they were off and request the sellers do the repairs
- Run your numbers again, see they were off and request a lower purchase price
- Run your numbers again and cancel the deal because something came up during inspection that makes it not worth it/too risky to buy this project
Correct

Incorrect
Question 22 of 23

22. Question
TRUE OR FALSE: It’s OK to underestimate some of my numbers like commissions, days on market and reduce my rehab numbers a little to make a deal work. I’m sure it will be fine because the Seller is motivated, I feel excited and I’m sure it will just work out.
- TRUE – It's more important that the Seller know you're serious. You can adjust the numbers and hope for the best, as long as you feel good about it.
- FALSE – We do our best to try to be as close to our initial numbers as possible, but we can't make a deal a deal and take on that much risk if it's not.
Correct

Incorrect
Question 23 of 23

23. Question
OPEN ANSWER: What was one of the biggest takeaways you learned from this section?
- This response will be awarded full points automatically, but it will be reviewed and possibly adjusted after submission.
Grading can be reviewed and adjusted.

Grading can be reviewed and adjusted.

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

11. Question

12. Question

13. Question

14. Question

15. Question

16. Question

17. Question

18. Question

19. Question

20. Question

21. Question

22. Question

23. Question