Investor · Boonsboro, MD · Member since 2016 · 48 posts · 8 votes
I am hoping to get my first buy and hold property under contract by the end of the month. I feel comfortable estimating ARV but am too new to nail down the rehab costs. I have read J Scott's book, and it is a big help, but I need to avoid unforeseen issues that a rookie might miss. My idea was to bring in my inspector on showings to give a quick 30 min. walk-through estimate (he also does 203k inspections) on properties I am seriously considering and before I make an offer, and offer him to be a partner of sorts for my first few deals. I am also open to flipping if the numbers work out, but for the buy and holds, what could I offer him? a percentage of what? a flat fee of $1000 if I close and am cash flow positive? I want to do something that gives him a vested interest as well and will encourage him to help me on future property assessments, but don't want to break my bank in the process. Has anyone done something like this or have any advice? This is just for my first few homes until I feel comfortable on my own. Thanks BP community.
It depends on your home inspector's goals and if it's aligned with yours. You could always make a suggestion, and go from there. Perhaps he has more resources that he can bring to the table, besides the home inspection reports.
Or you could use this process to screen for potential contractors, who will have a vested interest in giving you quotes. Most should be happy to walk through the properties with you in the hope of future business.
It depends on your home inspector's goals and if it's aligned with yours. You could always make a suggestion, and go from there. Perhaps he has more resources that he can bring to the table, besides the home inspection reports.
Or you could use this process to screen for potential contractors, who will have a vested interest in giving you quotes. Most should be happy to walk through the properties with you in the hope of future business.
General Contractor · Palm Desert, CA · Member since 2016 · 193 posts · 79 votes
9y
Why pay an inspector when you're probably going to hire a contractor anyway. Your contractor will do inspections as part of his scope of work. If you want to offer a partnership position, do it with your contractor. Then he has a vested interest in getting the project done on time and on budget.
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Sean Haardt For what it's worth, I don't see a lot of "cost to rehab _____" in inspection reports. Maybe they can give you an estimate but then there's sweat equity vs. handyman vs. licensed/bonded contractor prices. And what do you do after closing if the estimates he/she gives you are different than a contractor bid? Given that, I'd have a contractor come with you.