As of now I am a wholesaler that is learning how to find deals. However after reading “the book on estimating repair cost”, I am still not confident to being about to estimate repair cost. I fear this may be my biggest hurdle while getting started.
Are there relationships where a wholesaler has a contractor to estimate the repair cost of properties and the wholesaler give the contractor a portion of the profits for the properties that are sold? If so how does that relationship look?
@Justin Scott I think you are better off establishing square footage estimates than trying to get a GC to give you a cost estimate, then trying to find a buyer, then him getting estimates, yada, yada, yada.
Sit down with a GC, or someone else that knows the trade and get ball park sq ft estimates. Like: just cosmetic work, no mechanicals = $12 per sq ft. Roof, mechanicals and cosmetic = $25 etc..
Then you can walk through a place and put it in one of 3 or 4 categories. Light cosmetic, full cosmetic, full cosmetic + mechanicals, Full cosmetic + full mechanicals + exterior.
If you have those categories broken down into sq ft you can give rough estimates.
@Justin Scott I like your honesty. I personally take wholesalers estimate with a grain of salt no matter how much experience that person has. I prefer to know the condition of the property and major systems so I can do my own estimate as an investor. Anyone that relies on a wholesalers estimate is silly since wholesaler has no vested interest and a lower repair estimate always serves the interest of the wholesaler and not the buyer.
Best of luck!
@Matthew Irish-Jones that is a good idea, getting the sqft ball parks could really be helpful.
@Twana Rasoul i see what you are saying. Based on what i have been hearing, no one trust the wholesalers when it comes to repair cost. So being able to provided rough estimates like Matthew mentioned above may be the best course of action as i continue to learn