Wholesale Case
Posted in Uncategorized on 06/03/2010 09:09 am by adminWholesale Case
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Do I Need To Be Able To Estimate Construction Repair Costs To Wholesale Houses?
Almost all of the properties that wholesalers will “put under contract” will need some degree of repair work. These repairs can range from some new carpet and paint to a complete “gut job” where you will have to remodel the entire house inside and out!
Unfortunately we as wholesalers MUST be able to calculate the rehab dollar amount. We must be able to plug this critical “Rehab Value” into our Wholesale Formula Spread Sheets. These spreadsheets tells the wholesaler if he has a real deal on his plate or not!
More on how to calculate your spreadsheet numbers some other time! But for now, just know that this rehab dollar amount is a critical variable when figuring out how much you will offer on the property you are looking at!
So, if you know absolutely nothing about estimating repairs on a rehab project this could be a problem for you. So here’s what I suggest you do if your new to the business. CALL A CONTRACTOR TO HELP YOU CALCULATE THE REHAB COSTS! Then, open up your ears and your eye’s and pay attention to what the contractor tells you about the project at hand.
Estimating repairs is not rocket science. It just takes a little practice to get it right! I suggest that new investors should be walking through as many distressed properties as they can with a notepad, a tape measure, and an open mind! I can teach anyone in 30 Days or less, how to calculate rehab numbers and have excellent ballpark repair numbers on just about any project.
I have put together some generic project cost sheets that will help put 90 % or more of the repair totals together for you. Just plug my numbers into your Rehab Value Spreadsheet and you will be more than on your way to arriving at the complete project cost totals that you will need. In my e-book “Wholesaling Smarts” I have included this project estimating cost sheet.
You may have to pay your contractor a few bucks for the first few estimates, but do it anyway! Think of it as the price of an education! While the contractor is doing his thing, you should run your own numbers using the cost estimating sheet in my e-book. Then, after the contractor has given you his numbers, compare them to yours to see how you did on your project total. Be patient, it will take some practice, but anyone can learn how to estimate like a pro! After a while, you will never need to call the contractor again, I promise!
YOU MUST HAVE AN ACURATE REHAB COST VALUE TO PLUG INTO YOUR WHOLESALE DEAL SPREADSHEET, WHETHER YOU ARE ESTIMATING THE REAPIRS OR YOUR CONTRACTOR IS DOING IT FOR YOU. IT’S AN EVIL NESSESSITY THAT ALL WHOLESALERS MUST CONTEND WITH IF THEY WANT TO BE SUCCESSFUL WHOLESALERS!
More Free FAQ videos about real estate wholesaling here? www.WholesalerSmarts.com
About the Author
Since 2001 Eddie Case has flipped several hundred houses in the Harrisburg, PA region. Eddie’s “straight line” approach to Wholesaling revolves around the unique specialty of
“assigning his contracts” to other investor/buyers commonly, this technique is known as assignments. Eddie is the host of his own weekly radio talk show “Reality Real Estate” where he educates his listeners on the subjects of wholesaling and assignments. Eddie is dedicated to helping others succeed through understanding and applying his time tested, step-by-step approach to wholesaling houses.