Short windows accurate numbers??

Question

Since there are such short windows, especially with good deals, how do you guys manage to get accurate rehab estimates and arvs if most deals go so quickly? I assume you put in the offer contingent on inspection, then give the inspection report to your preferred GC?

Will Barnard · Answer

Some of them yes, but mostly, your walkthrough is to identify what is bad, what needs upgrading, etc and YOU create the scope of work for repairs. As a rehabber, you should be looking for the ugly, dated, old homes to make new or newer again. So when our walk in, you should be looking at a kitchen that is old, dated, or even trashed. So scope of work is gut kitchen and replace with new cabinets, countertops, appliances, etc. next section, bathrooms, same thing and so on and on. After you have your scope of work, you should know what each item or section should cost you. Total them all up and there is your budget. You also ask the seller or list agent what info you can get form them (how old is the roof, HVAC, etc). Add in anything they tell you and if there are hidden items like foundation issues, plumbing, electrical, HVAC, etc which your eyes can not see, that is what your “inspection contingency” is for and you get the proper pros into the house to inspect those items. If they are bad, you have reasonable means to re-negotiate if they were not accounted for and hidden.

Will Barnard · Answer

No, you never guess, you learn how to estimate each item or section of the home.

Will Barnard · Answer

No,that is not how it is done. As a rehabber, you need to learn how to properly and accurately calculate both rehab numbers and your exit value. Trying to rely on third parties is not efficient, productive, or cost effective. There are literally hundreds of threads here on how to estimate rehab costs. Do a search and you will likely find ,any where I have gone into great detail on how to learn and perform this process as have other experienced flippers.

Marco Morkous · Answer

@Mike Cumbie so you just guess? I get the obvious such as walls carpet etc but how do you know if there are foundational or other hidden issues without an inspection for example

Marco Morkous · Answer

@Will Barnard do you get the list of repairs via the inspection?

Mike Cumbie · Answer

I agree with @Will Barnard

You either have to have a contractor with you (which they will not do 40 houses before you find a deal because they have to work too) or you need to have a good ballpark range of repair costs. You also need to know what it will sell for when complete. That whole process is really your "secret sauce" or your "11 original spices" to your business.

Short windows accurate numbers??

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