ok so Im new at this and need some help on estimating the repairs on a property.Any good website or free ebook that can help?i just dont want to go into my first deal assigning a contract with bogus repair values,
Thank you guys!
Spend a little time in home depot or lowes.They have labor and material prices by most products such as flooring,doors,etc.You can also call contractors and put there estimate in a package for the buyer.
talk to a contractor. maybe call one out to get a free estimate. even if you don’t hire him, it’ll give you an idea. then you will learn what can be done without hiring out special labor.
Go to shop, learn the price of tools. You can try online shops too. There you may find some contractors list and their package cost etc which is more helpful.
Look, I struggled with this one a lot too when getting started. It is great to do as much research as you can to make the best estimates. Additionally, it doesn’t hurt to have a mentor, partner, contractor, etc. go with you at first to help. However, if you are up front and real with people, this is not as big of a concern as you may think.
People will only buy if the numbers make sense. They should inspect each deal on their own anyways. If you are doing your best to tell them what you believe to be true, they will be able to insect and make a decision for themselves. Try your best to provide accurate information, but if you slip up a little, your investors will let you know. Worst case scenario, you can always go back to the seller to renegotiate. Continue to learn and do research, but don’t allow that to hold you back from taking action!
hey thank you guys, I appreciate all of the helpful information!After reading these post it just dawned on me that I have a buddy thats a contracter,so according to what you guys are saying I should bring him along when I check out the property?Thanks again!
It has been my experience in about 80% of my deals, I don’t even guess at the repairs because my buyers are going to be the ones doing the repairing so who am I to judge.
In most cases you just need to be able to notice specific issues and let your buyers know that they need to look into it.
Unless your flipping you won’t ever be doing the repairs, so don’t let a little problem like this worry you. it’s gravy, i promise.
Thanks again,all this info will be put into work in a few weeks!!I appreciate all the help!
If you expect to do a lot of business in an area, you aren’t going to get too many free estimates from contractors if you never hire them to do the work. Their time is worth money and as soon as they discover you are using them, the free ride is over, and it isn’t going to do your reputation any good.
My suggestion is that you list the defects and not the cost of repairs. Cost of repairs vary so much from owner to owner. I might be able to finish a house for $4,000 and 10 days, where another person, doing their own work takes 5 times as long and spends 4 times as much.
I’ve know investors, using contractors for everything to have costs that vary by 200%. It depends upon how much you know about construction, who you hire, and how carefully you watch them.
Make a deal with a good contractor, who will go out and do written estimates only if you get an out of area buyer who is SERIOUSLY interested and you have verified that he has the means to pay. That’s a better deal for the contractor since he actually has a real chance to get the job and do the work.