Welcome to the Real Estate Strategies Podcast. I'm Ken McRoy and I'm here to give you creative ideas on how you can get started or continue your journey in real estate.

Each week we will bring you inspiring and informative conversations with successful people and their path to obtaining or investing in real estate.

Enjoy the episode.

Hey everybody. It's Ken McElroy here and I have, I'm happy to have my good buddy here.

John Krause. He's our VP of construction for MC. Hey John. How are you? Good, good, good. So we get

lots of questions from people about new

construction and a lot around renovations because value ads are kind of the thing right now.

Obviously, you buy something and you put money into it. You hope that you get more rent, right?

So let's start right off on the renovations because, you know, we meet every week.

And as you know, there's a lot of moving parts on renovations.

It's super frustrating because you have a lot of small contractors.

There are a lot of local contractors.

A lot of times these aren't big money things like you're used to doing on a big,

large apartment project. So let's talk about that. So what's the difference between managing

a renovation and a new construction project in your mind? So to me, the big difference is,

you know, the labor and material, the labor and material deal.

We, with a reno, you know, we, we order everything in pre-packaged packs to fill a unit.

Everything that needs to be installed, we call it a matrix.

And we get all that stuff together.

The guys come in and they're kind of jacks of all trades that install everything and

repaint the unit.

Floor covering company comes in and it's a done deal.

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