House Flipping Renovation Tips with Jess Renae

Jess Renae (00:00)
I think a lot of people see the ARV and that just grabs their attention and they’re like, ⁓ this is going to be great profits. But when you go into a property and the layout

doesn’t make sense, then you have to do so much construction to get it to a point where the layout makes sense, right? And that you can actually reach that ARV. But that comes with permitting. New investors don’t have time to wait through loan permitting, you know, depending on your county. That comes with a lot more money because you’re removing walls and you you got to add a whole bunch of plumbing and electrical.

Scott Bursey (02:09)
Welcome back to the Real Estate Pros podcast. I’m your host, Scott Bursey. Today, we’re diving into the world of maximizing potential, specifically the profit potential that comes with strategic renovations. My guest is Jess Britt, the founder of Not Another Renovation Company, who specializes in helping investors and homeowners transform properties for maximum market return. Jess, thanks for being here.

Jess Renae (02:12)
All right.

Thank you so much for having me.

Scott Bursey (02:39)
It is wonderful, just wonderful. And I’m looking forward to our conversation. Before we dive into the how, I want to know about the who for those just meeting you. Tell us about the path that led you to real estate and the core mission that drives your work today.

Jess Renae (02:56)
Absolutely. So again, I’m just a Brit, but I also go by Jess Renae. And it’s interesting because my dad is actually a general contractor here in Atlanta. And so I have literally been around construction my whole life. My family is involved in construction on so many different levels. And so ⁓ I’ve been in it my whole life, but

I actually got my training in everything not from my dad because he actually didn’t really want me to do this. He wanted me to stay far away from it. But I just had a heart for it. So I learned everything from a female investor that took me under her wings. And she trained me on a lot of stuff. And then I just elevated and grew from there. ⁓ whole mission is to make sure that whomever is wanting to get an investment

can truly create generational wealth and not go through the heartaches and pains that I and previous investors have done.

Scott Bursey (03:59)
That is a great, great motto and ⁓ I tip my hat to you on that. It’s great to have your insight. Our audience is made up of real estate professionals always looking for that edge in advising their investor clients. Let’s start with the basics. What are the key red flags real estate pros should spot early on in a potential flip or renovation project that

Jess Renae (04:24)
It’s fine.

⁓

Scott Bursey (04:29)
Signal a money pit, Jess. ⁓ Not a profit opportunity.

Jess Renae (04:35)
that’s a good one. That’s a good one. I’m going to tell you, number one is going, ⁓ especially for new investors, is going to be layout.

I think a lot of people see the ARV and that just grabs their attention and they’re like, ⁓ this is going to be great profits. But when you go into a property and the layout

doesn’t make sense, then you have to do so much construction to get it to a point where the layout makes sense, right? And that you can actually reach that ARV. But that comes with permitting. New investors don’t have time to wait through loan permitting, you know, depending on your county. That comes with a lot more money because you’re removing walls and you you got to add a whole bunch of plumbing and electrical.

So I would think that’s number one. If you don’t have the proper layout,

You’re gonna be losing if you need a new roof new sub floors These are the main things that you want to look for as your first investment it should definitely be something that you can get in and out we call it a Makeup flip you like you just go on in powder and paint and make her what she ain’t you know That’s the that’s the goal for your first flip just get in and get out

Scott Bursey (06:39)
That’s critical advice for maximizing profit and minimizing surprises. Just moving to the budget side. When calculating a comprehensive renovation budget, what’s one line item investors often overlook or severely underestimate that significantly impacts the final ROI?

Jess Renae (07:02)
yes, I’ve been actually talking about this a lot lately. It is usually the sales cost. The sales cost will come in and eat up whatever profit you thought if you do not calculate that in the beginning to make sure you have that because with the sales cost, you’re going to have ⁓ your real estate fees. You have to pay your realtor. You’re going to have your taxes. However long you had the property, you have to pay taxes on that.

And then you’re also going to have your.

Insurance you also have insurance for the time that you have the property and a lot of times you can pay upward fifteen thousand eighteen thousand for your real estate fees and that can eat up a budget if you only had twenty thousand dollars, you know in your profits and I think that’s one of the main line items that new investors definitely miss

Scott Bursey (07:58)
Excellent, excellent point. Contingency planning is everything in this business. Just design trends change constantly. What common renovation trend should real estate agents advise their investor clients to actively avoid right now because the return on investment is proving to be quickly diminishing?

Jess Renae (08:26)
That’s a great question. ⁓ let me just say when it comes to the, when it comes to the design, I often tell them to look and see what the other houses in that area are looking for because nine times out of 10, that’s what the buyers in that area will like because you can go to certain areas, especially here in Atlanta, where some people are okay with granted and other people only want court. So it’s best to look in that neighborhood to see what style do they like.

But what I will say is ⁓ anything that has to do with ⁓ engineering hardwood floors, you’re gonna wanna stay away from that. Anything that, because you can’t change engineering hardwood floors. It is a very high ticket item. And if you wanna change the color later on, you can’t do that. what is in today, the color that’s for today is not gonna be the color that’s for three, four years.

And no homeowner wants to have to redo their whole entire flooring. So if you’re going to do flooring, think that that’s the main area that people make mistakes at. They’re doing flooring that is a very costly expense and they’re doing it for the now. You want to think longevity. So you want to go with LVP because LVP flooring is very inexpensive and people don’t mind changing that out, you know, in a few years if they have to or hardwood.

Scott Bursey (10:26)
Good to know we’re not to spend the money. That helps keep budgets tight and targeted, Jess. Great insight. And from the operational side, how can real estate agents best collaborate with a renovation company like yours to ensure a smooth project timeline and avoid delays, especially when financing is involved?

Jess Renae (10:29)
Yes.

So I would say it’s always great to have the contractor to come out or have a detailed video so that they can see it. ⁓ I’ve seen so many flips go wrong because people are guesstimating on about how much it should be. If you get, and I know that a lot of contractors are not gonna wanna run around to every property, but kind of how you see on the HGTV shows, once you get it down to, know, this is one of the properties that you are.

Really interested in have that contractor come out go ahead and just have them come out so that they can actually give you a realistic budget and a realistic timeline Any time that you are going in and you’re just guessing then that’s when the trouble is gonna really start

Scott Bursey (11:37)
Clarity and communication, the foundation of any successful partnership. Absolutely. Finally, let’s talk about the listing side. For agents listing a property that genuinely needs a significant renovation, what is the best strategy for pricing and marketing the potential of the home to attract the right buyer or investor?

Jess Renae (11:40)
Absolutely.

think understanding the numbers themselves. So often when we go and look at these houses, they are giving us ARVs that are just not realistic. understanding that, I call it a chain of command, right? You have to make money as the real estate agent, but then the investor or the homeowner that’s coming in has to put money into this to make it a livable space. And if it’s an investor, then they have to be able to make money.

So I tell people you can’t get rich off of one project, right? So pricing it at a point where when you understand what is it going to take to actually get this to the ARV that you are explaining to us, knowing that will give you ⁓ an idea of where the price is, where you can still eat and have money, but then you still leave some room on the table so that the investor can come in and make it. And I think that’s where

A lot of people kind of get frustrated with because it seemed like they’re taking all of the profit out of especially wholesalers, but they’re taking all of the profit before I can even get in and touch it. And so, yeah, just understanding the true numbers will help in pricing it correctly.

Scott Bursey (13:18)
Selling the vision, not just the square footage. That’s a powerful approach. Jess, is there anything that you’d like our audience to take away or some advice you’d like to give them today concerning your business or your operation or your life in general?

Jess Renae (13:21)
Right.

Yes, thank you for that opportunity. I definitely want to just stress the fact of when you are dealing with investors as a real estate agent or a coach, you want to make sure that you are giving true valuable information. People’s livelihoods, their dreams, their generations are dependent on your knowledge. And so when you’re going at this,

making sure that you truly understand the process, that you understand the numbers so that you can convey that to your investor. And I think that is the most important part. We get a lot of noise on social media, a lot of gurus on social media, but if you are fortunate to be able to work with an investor, making sure that you are given the correct information. And that’s kind of what, you know, my business

is thrive doing is making sure we don’t we don’t promote the hype. We promote the truth. And I would say that as an advice for everyone.

Scott Bursey (15:25)
Great advice right there. So Jess, we’ve covered a lot of ground here today and I know people are going to want to tap into your brain for the listeners who want to build with you or just follow the play-by-play of your journey. What’s the best way for them to reach you?

Jess Renae (15:41)
So I’m on social media, Instagram, and Facebook at It’s Jess Renae, and Renae is R-E-N-A-E. And you can also go to my website where you can get tapped into my funnel so you can find out upcoming events that we have, and that is notanotherrenovation.com. So www.notanotherrenovation.com.

Scott Bursey (16:05)
Thank you, Jess, for being here today and for sharing those vital insights.

It was a sincere pleasure. And for our listeners, we appreciate you. If you caught a vibe or found some gems in this episode, do us a favor, hit the subscribe button. We’ve got heavy lineups of guests just like Jess coming your way in the near future. Until next time, keep your standards high and your vision clear. We’ll see you in the next episode, everyone.

Jess Renae (16:19)
Yeah.

That