Top 10 Renovations That Make You Money With Basic Skills!

today's video is all about how to get a huge return investment when you renovate your house both if you're hiring a contractor and especially if you're doing it yourself stick with us we've got all the best information that's in the market you're gonna be surprised but it's not on the list so let's get on with the show all right yes and remember to hit the like button good point guys everything you can do as far as interaction and liking it helps to promote this video down the road and this is information we're really going to try to promote hopefully YouTube takes this and runs with it because this is going to help a lot of people I think kind of sort up the cobwebs so what we're talking about today is return on investment and it's a very difficult subject matter to handle because there's a lot of factors that go into this first of all let's just talk about your home should be considered an investment there is a lot to do with maintenance on a home but there's a lot of opportunity in the world of investing in your home what I want to talk about today is return on investment and the factors that go into this okay one of them is location huge where you live affects the return on your investment most guys I know in the trades who are running around in circles picking up stuff they go to one store they go to the box store because they only have time to make one stop in the morning to get their stuff when they go and they pass that cost on to you all right and that resent results in about a 60% return on investment for almost every project that's going on and that's different than what the world would let you know traditionally if you're watching TV you'll find the shows will glamorize renovation and there they'll talk about we put money in and we made a fortune on the other side and that can all be true to a certain extent but you are going to be in a safe place if when you're renovating your house you have it in mind that the cost of the material and the direct cost of the labor is about what you're going to get back okay all the costs of running the business and all the taxes are built into the system you're not gonna get a return on that and that kind of works into this whole sixty percent return concept okay as a business about twenty five percent of your cost is material alright and then another twenty five percent is the direct labor and then a little bit of profit or labor for yourself but the rest of it is operation and taxes and there's an incredible correlation there with what you're gonna get back what ends up happening is you get sixty cents on the dollar back so you really want to start thinking okay when do I want to renovate my home when it's time to sell does that make any sense because I'm only gonna get sixty cents on the dollar back but today we're gonna talk about all those projects that have a great return and on top of that because I teach DIY I'm gonna show you all the projects that you can DIY that have massive return alright so now that we got that understood I get an idea where the pricing and the concepts go we can jump right into this whoo all right so when I'm talking to her di wires I'm talking to people who've got a variety of different skills the first skill I want everybody to learn is how to paint all right now I'm gonna dab this later but forgive me I'm gonna put a card in this video if you want to learn how to paint as a DIY or so that you can do a great job and make money click the video over here which is not available during the live show now if you know how to paint you've got two advantages one painting on as far as return investment is concerned is very low cost investment right it's a few gallons of paint some basic tools and mostly sweat equity on your partner no painting the exterior of your house if it's some if it's a house that can be painted like aluminum siding or wood siding or brick or stone or stucco okay if you paint the exterior of your house on average you've got about a five percent increase in the total valuation of your property that is massive because the average home in America is $200,000 I know some are you gonna be like whoa where do you get a house that cheap and some of you're gonna go well where do you get a house that expensive reality is is it two hundred thousand bucks it gives you about a three or four bedroom home basic across the board you know average town size home alright and if you can get five percent return that's ten thousand bucks do you know how much paint you can buy for ten thousand dollars it's unbelievable you can paint an entire home on the exterior for about ten or fifteen gallons maybe thirty bucks a gallon fifteen hundred dollar investment and you got a ten thousand dollar return that is awesome I like cutting and rolling for me it's very relaxing it's kind of like I get to the end of the job I get to paint relax take the stress not just down a few just paint spraying has all kinds of inherent risk attached to it right you bump into something you pull the trigger by accident well before you know it you've painted the floor ah and you don't need that in your life right okay yeah anyway that was number one we're gonna move on and I got I am playing with my pen and I just got in trouble from ex that's awesome in one second alrighty woah a beverage break alright let's go down to the next moment alright next thing we're gonna talk about is the number two Renault that has a huge return investment and that is replacing your garage door not very sexy I know but hey if you have a garage door that's in a bad state of repair all right or is really ugly or a horrible color and you've painted your house changing it is a huge thing this is not a DIY all right changing your garage door and I have this policy sometimes DIY means knowing when to phone somebody to do something for you okay garage door installation specialists are just that their trucks are tooled for one purpose to install a door that's it they're good at it they're quick at it and because of that they specialize exactly in just one thing they're able to deliver a very cost-effective result so when you would do a garage door you actually get a bum bum ninety seven percent return on investment I know and there's a reason for that because you're making something beautiful that was ugly all right so if you're going to get almost every dollar back do yourself a favor don't get involved in the world of springs and cables and have you equipment and all kinds of technology you don't understand that's a skill set there's just no sense bothering to learn because you can get your money back if I can give someone a hundred dollars and get ninety seven dollars back a day later and something awesome happened at my house I am all over that like white on rice all right number three manufactured stone veneer I know and this goes against my thinking but I have to say it because it is such a huge return I think it's a trend I think it's gonna be a long trend but I think it's a trend and I think over the last ten years we've seen a lot of this stone come and go as far as quality's concern and design and style and color and they keep trying to make it work but I just feel like twenty dollars a square foot for something on the outside of your house it's just really expensive but apparently the stats don't lie right this research that's been done does not lie if you pay eight thousand bucks to do a hundred square feet of this stone on your house you're gonna get eight thousand dollars of the value back personally I don't get it I don't even want to get it I think if you're gonna put stone on your house you put stone on your house and you put stone on the whole house you don't just go three feet up and then go siding from there because you're cheap but the point is in some climates having the first three feet of stone is actually really valuable especially when you get all the snow onto something that's sexy number four return on investment installing vinyl windows and I use the word vinyl because they're maintenance-free and they have a much higher return investment than wood or aluminum if they even sell those anymore I don't know maybe in some areas vinyl windows I'm just gonna go back to one of my cheat sheets here that I got all right bear with me vinyl windows is a really interesting market I have told people in times past that vinyl windows are one of those things you've got to be really careful with because you can buy a basic vinyl window and the technology from 1980 is almost the same as it is today on the lower end of the cost price point and it's about as efficient a window as you're ever going to need windows are only ever about an r5 value if you lock that in for insulation quality you got to spend a lot of money to get anything higher than five like thousands of dollars a window and there's no return on that energy savings so don't buy the lie that I'm gonna get the energy-efficient window if you want energy-efficient keep them shut that's the best advice out there know when it comes to windows the average house costs about $16,000 to do all the windows Wow okay seems like a expensive product but it gets you about a $12,000 return and it's pretty and if you're getting rid of aluminum or single pane or old wood ones you are gonna get some energy efficiency and over the course of a few years you'll get a lot of that money back and so it does make sense to do it now as a DIY project instead of giving 80% back as a DIY project you're gonna be spending about forty five hundred dollars on material there and if you listen to our third segment and I'll show you how to shop you're gonna find out that you can actually buy those windows for a lot less than that about less than half of that cost okay window installation is a labor business all right it is just cut it out stick it in seal it up make sure it's square and operational and then they move on it's not rocket science right there is some techniques and stuff and we do have a video you can click right here unless you're watching the live show but the point is this if you have good windows and you do it yourself you can actually make a lot of money on your house all right it's not a very difficult skill generally speaking to install a window it's hand tools you might need a reciprocate err like a sawzall in order to cut the old ones out but after that it's just shims screws and foam and a level and that's it if you want air passing through your house because you don't have air conditioning keep that in mind make sure that you get the right kind of winter let a lot of air through if you want UV protection and low e argon gas added to your windows don't let somebody take you to the bank okay those additives are actually cost about four bucks a window alright so don't let them upgrade you it's not a big thing it's not like you know getting an extra set of winter tires or something with it with a car for free they're not doing you a favor the the the feature here is really silly it's almost it's a no-brainer every window nowadays gets low e argon gas and and this is just silly but if you're gonna do a siding and window project together resizing works bigger windows sell lots of natural light if you're going open-concept house and you don't have lots of windows you lose a lot of appeal okay you need to have the light it just works together but make sure you consider the windows with your furniture and from the beginning right if you're gonna start making modifications to your home have a drawing know what it's gonna look like when you're finished so you can make a plan and stick to it so that you're not changing as you go all right siding 75% return investment and the reason is this that stat is related to hiring a crew alright if you do the siding on your own you're going to make almost three hundred percent your investment because siding is relatively inexpensive and once you know where to shop you'll make even more than that on your investment but the point is this you're buying a lot of Labor and paying a lot of taxes to a crew and so even with that you're still getting a seventy five percent return because it is so quick to put up okay and it makes a dramatic difference having a brand new facade now roofing sixty percent return every house has a roof it's not a sexy element on any house no matter how much they try to make new architectural shingles or go back to steel and make sexy new looking steel it's a roof it's part of the de water diversion system it's one of the reasons we have a house in the first place right so we don't die people don't instinctively drive down the street you go wow what a roof I got to buy that house there's nothing about a roof that says Wow I gotta buy that house having a good roof is important but I've never heard of a roof selling a house before so you're only ever going to get a 60% return it's boring it's not attractive it's not emotional that's right all right now I've gone through a whole lot of lists here and if you'll notice there's one thing in common these are all outside projects the painting the windows the siding the stone building a deck or a patio you're about 80% 70% depending where you live the do in the front door a good landscaping right building a fence that's higher than normal the reason for that is when you fix up the outside of your house it sells people are more concerned about what other people think about them then they think about where they live themselves bottom line so and the systems are simple generally almost everything to do with the outside of the house is installation based right it's somebody who's a specialist you have a siding guy that's what he does you got a roofer that's what he does you got a you got a painter this one he does you got a window guy that's what he does even when you hire the crew they're installers and installers get better return than renovators because renovations are multiple people being managed all right and that complex system has problems and has challenges and faults and mistakes and rework and all of these things and is so it's so complex that they have to increase their margins in order to do the business or they're not going to do it because it's high-risk okay so that's why your return is gonna be basically down to 60% any time you renovate there's one thing you can do inside the house that actually does a really good job in return investment and that's a remodeled kitchen I think one of our other videos before we talked about the difference between a remodel and a renovation remodeling is basically you're working with the mechanical systems that are there you're not opening the walls you're not upgrading the plumbing or the wiring or anything else you're just taking away the finishes and reinstalling them third house on the street is you and you put in crown molding new baseboards and you painted the place BAM you're the one with the offer okay now that's not a return on investment conversation but you want to be on the market for five days or five years I have a something here it's a handout I'm gonna give to everybody in the class okay here you go max all right there we go handouts are done what I'm gonna do is max I'm gonna get you to pan over to a TV screen that I got right over here let's zoom right in here and I'm gonna give you a tool okay I'm gonna have to get the name of this for you guys because it's not on the screen there we go there we go this is what's called the cost versus value report and if you go online you just type that in cost versus value report you're going to get a map and you're going to get different geographical regions all around the United States and you can pick yours put any information it's a name an address you can click the boxes you don't want to get bothered with with spam mail and then they're gonna give you a downloaded file and the file is something like this okay now this is a small town I call small towns but 270,000 people its Durham North Carolina shout-out to everybody in North Carolina we're talking about you today and what it does here is it gives a list of all of the different kind of projects for the different valuations of the homes right so kitchen remodel mid-range minor work major work which means there's a different scene changing the counters and backsplash and flooring versus gutting the kitchen and starting over those are both remodels okay and then there's kitchen renovation which is a different category altogether where is it on here bum bum bum Oh major remodel sorry my bad and there's mid-range and upscale and they'll give you different prices and it'll give you the national average on your cost of recovery the national average on the resale value of those projects the national average on the job cost for those projects okay this is a really valuable tool because it answers the question what about my tone what about where I live and you'll see for instance here let's find something that looks a little bit skewed that's a great one that was this entry door replacement okay now in this town you know there's only a 61% return on investment for an entry door replacement cost about 1700 bucks you get $1,000 back now you come over here the national average is seventy five percent okay the actual national average is eighteen hundred bucks which is almost the same but you're getting a $1300 return and so a chart like this will help you to decide in my small town what are the pros and cons what are the best options for me for for work and and compared to the national average but most importantly compared to my town okay because that's where you live that's the market you're competing in you can use this tool to shop different districts and take a look at the national averages this is 2019 data it's very up-to-date you know you will know what is going on in the neighborhood where you're living and you'll be able to make your decisions based on this information now one thing I wanted to talk about real quick am i posting a link for that you know that's a great question Johnny yes we'll put the link in the description of the video I understand that when we're talking about stuff like this not everything is perfect right 70 percent 69 68.5 it gives you the rough idea you need to have some that helps steer right when we're driving down the road the lane isn't just as wide as your car they give you a little extra room on each side so they you know nothing has to be perfect but having the ability to know exactly where you're going give or take the direction is more important than the actual numbers right one thing I wanted to talk about is this idea of the market the marketplace talks about return on investment every time someone says about renovation Oh every time they talk about renovation I don't care what's television if it's the news if it's designers if it's any kind of major vlog or any kind of major corporation if they're talking about renovation then they all say the same thing right there all preaching kitchens and bathrooms got to renovate your kitchen in your bathroom do you really like let's ask the question why why the kitchen in the bathroom because they're the worst return on investment so why is everybody telling us to do something that doesn't make any sense based on the information I just gave you and the information collected here if I was an advocate for consumers I'd have to say your best move is to paint your house inside outside right go build yourself a deck watch a couple of videos on how to build the deck click the link right here because you buy $4,000 of material now your house is worth another eight or ten thousand dollars Wow you could do that in a week not too many people living in the houses over here on this part of the economy making $4,000 a week nobody is making $4,000 a week who's not part of the twenty percent club but if you're a DIY or you can do that that is a phenomenal opportunity so why isn't anybody saying hey you should go build your own deck it's not that tricky you know like if you know how to use a measuring tape and a pencil in a skill saw you can build the deck it's not that tricky just saying why aren't the designers and the TV shows saying hey you should pay traps if the number one number one thing to do - for for your house was to paint it well that's great advice I guess if you want to paint company but don't forget in Fuhr in the renovation business and you're a big company and you want to sell products you've got to create the demand so here's the new last year Home Depot and Lowe's sold I think it was something like a hundred and sixty or 180 billion dollars worth of renovation product that's not bad that's a hell of a year you put that in perspective the NBA grossed 40 billion dollars ok now 40 billion for the NBA 160 that's 4 times larger than the NBA just Home Depot and Lowe's that's a huge business and they're not the only guy in that business it'd be like in renovation business there are like a hundred and twenty NBA's that's how huge this is all right it'd be like having 120 organizations that all had the National Basketball Association they all have their own LeBron James that's how massive this thing is and they're all four times bigger I'm not making fun of the Basketball Association I'm basically just letting you know how huge home renovation market is how much money is behind it and how much you're being taught by the Machine how to spend your money to their benefit not yours think about it you can remodel a kitchen and get almost all your money back and you hire somebody you could do that if you do it yourself you make money in a lot of cases you can't even renovate a kitchen or a bathroom make money even by yourself just because the amount of tools you gotta buy to do all that specialty work and you're gonna need to hire help along the way but a lot of these other projects that we came up with building a deck painting the house inside and outside doing the windows doing the side a even that stone anybody can install that stone it's fusion stone is twenty bucks a square foot you know how to use a drill you screw it on it's done you can get that job done yourself right these kinds of projects are the ones that homeowners should be doing there's one more project that we haven't talked about yet that is massive industry that's huge return on investment and that's installing hardwood flooring okay so let's get into this real quick because I don't want to get to and I I'm not trying to vilify Home Depot and Lowe's they given you exactly what you want they get you options to buy everything that you need and it's really super convenient but at the end of the day they're putting things on the Shelf that make them the most money because they've got options right and they're in business they got to make money and so when you shop there you are already saying I'm going to buy whatever you think is best for me at the price that you need to make lots of money so that you can afford to hire people to have opinions and voices to tell me what to buy should like and then I'm gonna go and buy it it's really kind of messed up so if you think about it this way as a homeowner you buy a house you're buying one of these right it's got a it's got to keep the water out and it's got to maintain a certain amount of temperature and then you want to be comfortable after that buying products that are high-quality and renovating yourself makes you money so just because kitchens and bathrooms aren't the greatest place for return investment doesn't mean they don't need to be done remember if your arrest your house is renovated the kitchen and bathroom needs to be too and if you need to learn about how to do these renovations about making mistakes and how to hire contractors to help you to process to click the link here this is the playlist from our whole do yourself tour all this information is available to help you out hope this has been useful we'll see you soon

Channel: Home RenoVision DIY

Views: 249,038

Rating: 4.9542022 out of 5

Keywords: homerenovision, renovision

Id: cNkHcjfDhqQ

Length: 25min 40sec (1540 seconds)

Published: Thu Apr 23 2020