Comments on: Wholesaling and Repair Estimates – You Don’t Need to be an Expert! http://www.biggerpockets.com/renewsblog/2009/11/05/wholesaling-and-repair-estimates-you-dont-need-to-be-an-expert/ Learn, Network, Invest Sun, 12 Feb 2012 02:59:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Stephanihttp://www.biggerpockets.com/renewsblog/2009/11/05/wholesaling-and-repair-estimates-you-dont-need-to-be-an-expert/#comment-77664 Stephani Wed, 27 Jan 2010 18:58:55 +0000 http://www.biggerpockets.com/renewsblog/?p=8323#comment-77664 Hi Ikem,After working in the same neighborhoods for awhile and getting to know them really well, I can usually come up with a correct offer amount in about 5 minutes after walking through the property. I don't use a formula or have any extensive knowledge of repair estimates, I just know what makes a deal a deal to my buyers.I know that probably doesn't give you much direction, but that's how I do it.Just to give an example, I just wholesaled a duplex to a lady that was in almost move-in condition, it just needed paint and carpet. She bought it for 32k and is looking for more in the same neighborhood. So now I know her price for a duplex in that neighborhood in great condition. If I find one that is in worse condition, I will adjust my price down and go from there...Not sure if that makes sense...Steph Hi Ikem,

After working in the same neighborhoods for awhile and getting to know them really well, I can usually come up with a correct offer amount in about 5 minutes after walking through the property. I don’t use a formula or have any extensive knowledge of repair estimates, I just know what makes a deal a deal to my buyers.

I know that probably doesn’t give you much direction, but that’s how I do it.

Just to give an example, I just wholesaled a duplex to a lady that was in almost move-in condition, it just needed paint and carpet. She bought it for 32k and is looking for more in the same neighborhood. So now I know her price for a duplex in that neighborhood in great condition. If I find one that is in worse condition, I will adjust my price down and go from there…

Not sure if that makes sense…

Steph

]]> By: ikemhttp://www.biggerpockets.com/renewsblog/2009/11/05/wholesaling-and-repair-estimates-you-dont-need-to-be-an-expert/#comment-77663 ikem Wed, 27 Jan 2010 18:03:26 +0000 http://www.biggerpockets.com/renewsblog/?p=8323#comment-77663 Hey Steph,Great point as usual. I really appreciate you and for what ur doing ;x could u answer the reader's post of december 24th, 2009 at 10:46am name: Michael De La Nuez. I have my question exeactly along those same lines.Thanks, Ikem. Hey Steph,

Great point as usual. I really appreciate you and for what ur doing ;x
could u answer the reader’s post of december 24th, 2009 at 10:46am
name: Michael De La Nuez.
I have my question exeactly along those same lines.

Thanks, Ikem.

]]> By: Michael De La Nuezhttp://www.biggerpockets.com/renewsblog/2009/11/05/wholesaling-and-repair-estimates-you-dont-need-to-be-an-expert/#comment-76630 Michael De La Nuez Thu, 24 Dec 2009 17:46:03 +0000 http://www.biggerpockets.com/renewsblog/?p=8323#comment-76630 Thank you for the article Steph, great stuff!Question:Knowing that a buyer will eventually come up with his/her own rehab estimate, how can I factor the numbers from my initial general repair costs estimate when making the first offer to the seller? I just want to avoid making an offer that could have been lower.You mentioned you do not include an exact number for a rehab estimate, so when you make the first offer to the seller, what kind of numbers did you use and how (for the rehab estimate)? Or do you make an offer without a rehab estimate, wait for the buyer to do his inspection, buyer gives you a counter offer with his rehab estimate included, and then you update the offer to the seller? Thank you for the article Steph, great stuff!

Question:

Knowing that a buyer will eventually come up with his/her own rehab estimate, how can I factor the numbers from my initial general repair costs estimate when making the first offer to the seller? I just want to avoid making an offer that could have been lower.

You mentioned you do not include an exact number for a rehab estimate, so when you make the first offer to the seller, what kind of numbers did you use and how (for the rehab estimate)? Or do you make an offer without a rehab estimate, wait for the buyer to do his inspection, buyer gives you a counter offer with his rehab estimate included, and then you update the offer to the seller?

]]> By: Johnhttp://www.biggerpockets.com/renewsblog/2009/11/05/wholesaling-and-repair-estimates-you-dont-need-to-be-an-expert/#comment-75052 John Sat, 07 Nov 2009 22:50:43 +0000 http://www.biggerpockets.com/renewsblog/?p=8323#comment-75052 Thanks for the advice. I'm slowly learning the real world costs for rehab projects, but the thing about wholesaling is that you can leave all the estimates for your end buyers to figure out while you make money selling them great deals. Thanks for the advice. I’m slowly learning the real world costs for rehab projects, but the thing about wholesaling is that you can leave all the estimates for your end buyers to figure out while you make money selling them great deals.

]]> By: Joe Ziolkowskihttp://www.biggerpockets.com/renewsblog/2009/11/05/wholesaling-and-repair-estimates-you-dont-need-to-be-an-expert/#comment-75049 Joe Ziolkowski Sat, 07 Nov 2009 21:15:53 +0000 http://www.biggerpockets.com/renewsblog/?p=8323#comment-75049 Great advice Steph! Great timing too. I just walked through a disaster this morning that had me a little intimidated, so this makes me feel a bit better! Keep putting out those great articles and blogs! Great advice Steph! Great timing too. I just walked through a disaster this morning that had me a little intimidated, so this makes me feel a bit better! Keep putting out those great articles and blogs!

]]> By: DemosLhttp://www.biggerpockets.com/renewsblog/2009/11/05/wholesaling-and-repair-estimates-you-dont-need-to-be-an-expert/#comment-75033 DemosL Sat, 07 Nov 2009 04:11:30 +0000 http://www.biggerpockets.com/renewsblog/?p=8323#comment-75033 What Steph said, I alway thought it should be. I just take a lot of pictures and videos so the potential buyers can have a fairly good virtual tour, which will tell them more than I can put in numbers. What Steph said, I alway thought it should be. I just take a lot of pictures and videos so the potential buyers can have a fairly good virtual tour, which will tell them more than I can put in numbers.

]]> By: Tim Wienekehttp://www.biggerpockets.com/renewsblog/2009/11/05/wholesaling-and-repair-estimates-you-dont-need-to-be-an-expert/#comment-75027 Tim Wieneke Fri, 06 Nov 2009 21:50:43 +0000 http://www.biggerpockets.com/renewsblog/?p=8323#comment-75027 Excellent point Steph. The reality is that for the investor, the issue isn't the estimate. It's the scope of work. When I am looking at a rehab for rental purposes, the largest any estimate has gotten is 3k. When it is for resale, 20k. Excellent point Steph. The reality is that for the investor, the issue isn’t the estimate. It’s the scope of work. When I am looking at a rehab for rental purposes, the largest any estimate has gotten is 3k. When it is for resale, 20k.

]]> By: Joshua Dorkinhttp://www.biggerpockets.com/renewsblog/2009/11/05/wholesaling-and-repair-estimates-you-dont-need-to-be-an-expert/#comment-74993 Joshua Dorkin Fri, 06 Nov 2009 02:03:38 +0000 http://www.biggerpockets.com/renewsblog/?p=8323#comment-74993 Great advice, Steph. As you said, any rehabber is going to want to get their own estimates (or at least figure it out themselves), and so as long as you, as a wholesaler, can give enough info to get some interest, what more do you need to do? Great advice, Steph. As you said, any rehabber is going to want to get their own estimates (or at least figure it out themselves), and so as long as you, as a wholesaler, can give enough info to get some interest, what more do you need to do?

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