Confusion about Repair Estimates Throughout the Deal Funnel
Hello, I was hoping you could help me clear up some confusion about estimating repair costs throughout the deal funnel. I understand that to BRRRR you need a distressed property and often this will be property that needs significant work. It seems like you are getting your initial pool of potential deals from wholesalers and auctions, or maybe a great agent if you can find the right one.
What I don't understand is how you can make any kind of repair estimate based on a couple of bad photos from a wholesaler or an auction website. I also don't understand at what point in the timeline you involve an inspector and GC bids. Can someone walk me through a hypothetical scenario of whittling down the deal leads to one you will actually close on?
For example, I am staring at a handful of wholesale properties. Of course each wholesaler says that something like 'if you put $40k into the property then you can increase the ARV by $80k'. So there you are looking at these leads, but no way can you assume the wholesaler has accurate repair estimates. What do you actually do next?