Compensation of Contractor- Rehab Estimates

9 Replies

Any suggestions on how to compensate a contractor who performs rehab estimates for Wholesale deals? Thanks!

Do you have an existing relationship with the contractor?

Time is money , pay him his regular hourly rate .  He will spend time driving to the site , looking at the house , and preparing an estimate  depending on the scope anywhere between 4 to 6 hours of his time .  The rate will differ among contractors

@Matthew Paul  

 Do you know a typical hourly rate for a contractor estimate? Is it in the $10-20/hr range?

IKES...  some will do it for free others can charge any hourly rate. If you are using a specialist of any kind for estimates/opinions you should talk it over with them BEFORE hand regarding the compensation. Sometimes I do not charge my investors/partners as I know I am going to get fed work/investment oportunities from them. Sometimes I even do not charge "newbies I meet here on BP :-) *  (paying it forward).  Other investors that are not going to give me work but just use me for my experiences get charged my hourly rate... Which is well above the 10-20 range...... like triple digits above...

Most will do it for free,

just spend sometime ahead of time and write down a scope of work. That way to work is well define for both you and the contractor. 

Your first buyer will do it for you too. 

They want it a price, they will tell you what their rehab budget is. 

I'm pretty good at estimating it myself these days too but your buyers are great for input. 

Originally posted by @Kelsen Job:

@Matthew Paul 

 Do you know a typical hourly rate for a contractor estimate? Is it in the $10-20/hr range?

  If I had to spend 3 to 4 hours giving you info on pricing  , I would be charging 3 to 4 hundred .     $ 10 to $ 20 dollars an hour is low labors wages in my area . 

Great post

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