Estimated Repairs

Bird Dogs, Wholesaling
1

New dogger does anyone know of a good way to estimate repairs?

2

Go to HomeDepot/Lowes, get their contractor CD (at the contractor desk), it has cost of items, etc.

It’ll start you on the right road.

3

Thanks I appreciate the information. How about getting a contractor to appraise the costs?

4

If you’re just birddogging, then it’s not your problem. It’s the investor that has to worry about the bottom line.

Get the CD. Visit the library and read/view a few handyman/repair books/tapes. With these, and some time, you should be able to broad base the repair amount and that’s all you need to be doing as a birddog.

Raj

5

Ok guys thanks for all the info, its seems like everytime I get on question answered another pops up. I got a lead sheet from an investor and I am stumped by two questions on the form;

  1. The property tax value…Howand where do I get the property tax value, I looked on the Appraisal districts website any other places to look?

  2. The estimated AVR ( after repair value)…Based on :comps/ opinion of area…now the estimated AVR how do I come up with that?

6

Answers:

  1. Property tax value is the value that the county has placed on the property in order to collect taxes on it. Use the GIS that I mentioned in my email reply. If you’re not familiar, call up your local register of deeds offices and they’ll direct you on what to do. Most are on the internet now, but if yours isn’t, you will have to actually go down to the RoD office and look this info up.

  2. The ARV. That is simply what you think the house’s value will be after repair costs. Example: If it’s a 3 bed, 2 bath 1500 square feet home, and in that neighborhood, those sell for $100-110K, then your ARV would be $105K after repairs.

Again, you, as a birddog, should not even be asked for a repair estimate. To get a repair estimate, you would have to get into the property and thoroughly review it inside and out. Birddogs don’t do that. You shouldn’t be doing much more than asking the seller if they would be interested in selling and if so, setting up an appointment for the investor. It’s the investor’s job to do the evaluation of the property, the negotiating on price, and to close the deal.

All a birddog does is find possible deals. The investor makes them into deals.

Also, if you have specific questions, the investor that you’re working for should help to answer them. Birddogs usually are birddogging to learn the business, and hopefully, make alittle money in the process. The investor should know this and be glad to help you learn the process.

Hope it helps,

Raj

7

Bit of an older thread but it applies!

Is the County Apprasial District typically accurate with the ARV and comps?

Getting comps is the next step in my process.

Thanks,
Mark

8

<<Is the County Apprasial District typically accurate with the ARV and comps?>>

No, not really…the Parish where I live (it’s Louisiana, we can’t have counties like the rest of the country, we have parishes)…lists my house (less than a year old) at $286K. I have an appraisal at $311K and have done work (with a building permit) to finish another bedroom and another bath that should add about $35K to the appraisal. This tells me two things:

(1) The tax assessed value is low (in this case by almost 20%, and

(2) They don’t have a tie between the building permits, the building inspector, and the assessors.

My rental properties (in the same parish) are assessed roughly 20% below appraisal also. At least they’re consistent. And for tax purposes, I’m OK with that!

Hope this helps.

Keith

9

haha yah. In my county, my appraised value is dead on what I paid for the home, within a few hundred dollars. This is in TX

I checked the apprasial district for northern IL and looked up my moms house, the one I grew up in…apprasial district has it at 69k… When I called to ask about this, apparently that county apprasies homes at a 3rd of thier value. I looked up the house we lived in before moving to texas, appraised value, 89k, last sold for 291k in 2001.

So I guess a LOT depends on where you live, around here from what I am seeing, the appraised value seems to be in line with the real value. I supose as I get comps going I’ll start to learn how accurate it is.

Thx for the reply

10

I checked with Home Depot today, they had no such CD…

refered me to http://www.homedepot.com/contractorservices