Less Is More!
Updated: Jan 7, 2019
Doing less will bring more. Huh? While growing up, I was told to focus on one thing and do it well. As an employee I was told to keep it simple. When I began operating my own company those words of wisdom became loud and clear. I was focused but needed to refine what I did; it was time to think smart, analyze the numbers and adjust the business model. I decided to do less and in short time the results brought more.
How can doing less bring greater returns? I made a decision to cease nearly all repair work and sell the units “as-is”, just cleaned up. I reduced the number of helpers and now the majority of work is cleaning. To my surprise I was saving and making more money.
"To my surprise I was saving and making more money vs. paying for repairs. "
Know when to repair There are times that making a certain repair brings greater rewards. But, those are the exception. I included pictures of a unit I bought for $300. It was used only twice. The majority condition of the unit was like-new. However, a broken skylight was never fixed and rain water poured in. The result was damage to the floor area and the roof. In this case, having limited but visual water damage of the floor and softening of the material within the roof reduced the value dramatically.
The decision was made not to repair the damage. I knew that further opening up the floor to chase potential black mold and rot could turn cost prohibitive—fast! I decided to take a profit of seven times, rather than risk the time, labor and materials for a greater return. Certain cosmetic or less critical issues may not affect the price much or at all. Not in this case. Why doing less will bring more First, the affordable housing crisis makes alternative housing solutions (used trailers), in any condition, very attractive. Second, chasing hidden water damage is the first way to lose profit and increase costs, especially if you are paying a handyman to do it. Less is more!