Hello BP family! my wholesale journey is going great here in Memphis. I'm getting calls and responses but I need help in estimating repairs and what damages to look for when doing a walk-through. Is there a guide here on the site for that?
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I recently bought the Flipping and Estimating book here on BP. I haven't cracked it open yet but it's received awesome reviews. I originally went to Amazon to purchase it the book..however, BP is offering the Flipping and Estimating book for free if you purchase the book on flipping houses (same price as the Flipping/Estimating book on Amazon).
Thought it was a good deal. You're essentially getting a 2 for 1 deal on BP.
Here is the link: http://get.biggerpockets.com/flippingbook/
Great to be in action! When you are first starting out it would be good to have a local contractor---or two---walk through with you and give you an estimate. I like to have more than one estimate just to be sure I'm not getting gouged.
Maybe your investors that you are turning your deals over to has a contractor they like to work with. I have a great wholesaler that does my walk throughs, repair list and initial pictures. If it looks good enough then we have a contractor go and confirm the repairs.
Reading those books Haider mentioned will be very helpful. But sometimes go getters like you need to learn while running---you can read when others are sleeping :-)
I love to help if you get stuck.
Best of success!
@Russhell Polk There's lots to learn, but there's also lots of information available. Take your time and learn it well.
there are some great youtube videos online that show how to find repair value.
also, BP taught me about the rule of 5s. i wish i knew where the link was...
as a wholesaler id just do around 60% of arv though if it is just cosmetic work.
find a buyer who you know you can someone rely on. he knows how to find the estimates. get pics of the property, show them to him and basically you can wholesale the property to him WITH training. if he is an agent, he may even run comps for you too
Thank you all!
At the local REIA club meeting speak to several wholesalers ask them what they set aside for various repairs.
We are a company operating in Memphis and I would say that no book or video will help you at all, especially here in memphis. you HAVE to get someone trained up to go and do rehab estimates. We have our own buyer and our rehab manager quote every house we buy and we still get caught out sometimes. Many times things have been deliberately concealed to try and get a better price.
One I remember which wasn't actually ours was a seller who had filled the drains up with concrete. So after purchase the rehabber had to demolish the toilets and bathrooms to get the pipes out. And they 30 year veterans of rehabbing!
One of the easiest ways to guess at rehabs in the beginning is to go by the $5k, $10k, $15k, $20k rule. If you walk thru a home and it needs anything call it $5k. You then go from there.
What I did in the beginning when learning renovation estimates is I sat with my contractor and wrote out a cheat sheet all based on an average sized home we were doing at the time. So when I went out the next time I wrote down what needed repairs and updates then started using my cheat sheet to fill in the numbers. It helped be out a great deal. One thing people never think to cover are hidden costs, utilities expenses, things like that.
Russhell, Take what Dean said above to heart. He is absolutely right on. Memphis is a great market; I love it. But it does seem like each and every house has it's unique challenges.
Many will give you advise but always listen to Dean and you will be glad.
Best of success.
So you should always take advice from a guy who doesnt even live in the United States? How many homes have you purchased from Dean to make a bold comment like that? I am by no means saying he is wrong, just they way you come across like he is the only one capable of good advice.
@paul timmins thanks that's exactly what I plan on doing at the next REI meeting. @dean letfus thank you and usually how much Will a contractor charge to do estimates? I do abide by a cheat sheet now (: @curt Davis @melodee lucido thanks Mel!
there are some good youtube videos online. there is also a blog somehwere here on BP that explains the rule of 5s
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