What are some of the resources to get construction information? I am not looking for the comprehensive information, just enough to help with the investment analysis. I am looking for something which tells me:
- What are the different types of roofs, what is their expected life, how much it usually costs to replace them, which one is suitable for which environment etc.
- What are the different types of HVAC system with their characteristics?
- Plumbing.
- Hot water heater.
- Exterior wall types. Brick & Stucco etc.
- Foundation.
- Windows.
- Ceiling.
I have seen lot of books explaining how to do the numbers, how to analyze the local market but nothing containing the above information yet.
All comments are appreciated.
Sean_L,
Thanks for the quick reply. I looked at the website (http://www.marshallswift.com). They have lot of different products. Could you recommend the one I should use, as I am not looking for very detail information. Just enough to do the initial evaluation. These products are little expensive too.
I used to use Marshall & Swift for estimating rehabs. M&S is the appraisers standard when doing the cost approach. I personally used the Residential Estimator software and handbook. If you are only interested in a ballpark estimate (for reasons unknown) M&S will be sufficient. They are kind of expensive, but MUCH less than designing your own software.
A good way to learn about the different building materials, their pro’s and con’s, etc. is to ask contractors or a home inspector if you can carry their tools for a day. Ask them a lot of annoying questions like “what does this cost”, “what does that do”, “how long will that last”, etc. Make sure you buy them lunch as compensation for giving them a headache.
Danny,
I am interested in non-residential commercial real estate, mainly small office building or retail strip. I want to be able to evaluate these properties, in terms of how long roof etc will last and set up proper reserves. If repairs are required, how much it will cost. I am not interested in the rehab as I am busy with other full time activities. I want to invest mainly for the cash-flow and do not mind small repairs/replacements. I understand return will be relatively low, if I am not doing any rehab.
Looking at the commercial section at http://www.marshallswift.com, it seems like “Marshall Valuation Service and Commercial Cost Explorer CD combo” will have all the information I need. Am I on the right track here or it is too much for my need?
That will give you a good ball park on replacement costs. Unless it’s drastically changed since I used it, it won’t have any information regarding a component such as the roof’s remaining life. I can’t think of any one-stop-shop to find such information. I’d be the first one in line if there was. You can always call the manufacturer and ask what the statistical life of the product is.
When you do your due dilligence, your going to want to ask for any warranties on any of the components that have been installed. Along with any service contracts and service history. If there is none to be found, I’d get some experienced contractors out to take a look and give me an idea of how many more years I could get out of the component. The important thing is not to spend too much time on a property that you don’t have tied up under some contract, whether a purchase option or purchase agreement.
Hey 123…
These guys have been around for a long time.
http://www.rsmeans.com/
Good luck!
Kip
Danny,
Once the property is under contract, I will get the professional inspection done. All I want is to establish early on, whether it is worth spending time and what should be the right price. That is why I need some knowledge of all this. If during due diligence, I find that condition is very different from what I thought, I can always ask for price adjustment or just back off.
123…
If you know someone in the property casualty insurance business they generally have access to both services and may be able to do the estimates for you or allow you to come into their office and do it yourself. I am in the P&C biz and would allow an investor to use my programs if they gave me the opportunity to write the insurance. Call your local agent and see what he can do for you. Good luck.
Steve