I am yet to do a rehab, but am moving in that direction: find a bad property in good neighborhood, fix it, sell it $20K-$50K above cost.
I have seen four properties with a couple of contractors (none of them materilized). I have a fairly good idea what they are looking for and a rough estimate. I am looking at other properties but cannot have a contractor tag along with me everytime I check a property out.
Is it a good idea for me to estimate reapirs on a property without having shown the property to a contractor?
I’m bummed. I had a property on which I could have made at least $50K. I waited for the contractor. I did show it to the contractor, and he gave me great ideas. But while I was showing the property to the contractor, the property got sold!
I do Walkthroughs myself, about 10 in a two hour period with a Realtor, make offers on a One-Page Offer to Purchase Realestate form…I have a 72 hour requirement for the Seller to accept, followed by a 10 day Due Diligence sheet, which puts me in control …ie. no way Seller can provide all the disclosure detail I require on the Due Diligence sheet…this gives me the time to have someone inspect the place for me for things I am not sure about…if I am not sure, I can back out of the deal…
Before you waste any time with contractors- Tie the property up! Get an agreement signed. You don’t need your numbers perfect before a contract, you need them perfect before you close. You can negotiate the price down when you have better leverage (home inspection report).
So first do a walk through with the seller. Get a rough estimate of repairs in your head. Sit them down and tie up the property.