Estimating Renovation Costs

[Matt Robinson]

Another one of the many critical ingredients to a profitable real estate renovation is accurately estimating your costs for the total project. Underestimating your numbers will cause you to jump into a deal you have no business being in, and overestimating your numbers will have you consistently passing up profitable deals that you should be pulling the trigger on.

However, accurately determining repair costs is not just a necessary skill for rehabbers, but is essential for wholesalers (and landlords) as well. We’ve all received that e-mail from a wholesaler with the “smoking hot deal” that only needs $8,000-10,000 in work. Of course we chuckle, and then quickly discard the email, since any experienced rehabber knows you can barely do carpet and paint for $8k these days. If a wholesaler doesn’t get realistic about repair numbers, he or she will quickly lose credibility with a buyers list and diminish the effectiveness of any email promotions.

At this month’s PIG meeting, “Estimating Renovation Costs” we will seek to shed some light on this topic for investors of all experience levels, as well as provide a quick tool and guide to assist you in your on-site calculations. If you have ANY interest in renovating properties for rental or resale, or are already in the business, this is a meeting you DON’T WANT TO MISS!

So mark your calendars for THURSDAY, MAY 18th at 7 PM in Destin/FWB at the Emerald Coast Convention Center, and via Live Streaming. Open to members and first time guests, so bring a friend and come join us!

Directions & Map Available at the Links Below: