Starting out right, valuing rehabs and deals accurately
Hi BP,
I am a new real estate investor and am interested in starting out with wholesaling. I currently work a full time job and plan to learn and build my business at night and on weekends. I have read many of the posts here on BP related to wholesaling and I feel that I have a fairly good grasp on the concepts.
The aspect of wholesaling that I have recognized as being the most important (correct me if I am wrong) in order to become successful is being able to accurately peg deals. The reason that I feel this is the most important part is because it allows you to, as a wholesaler, be honest to all parties involved. The seller will be happy that you do not have to move the price around, the buyer will be happy that the rehab costs are not twice as high as they were told, and the wholesaler will still have their integrity allowing them to build relationships and keep deals rolling.
What I would like to understand better before actually getting sellers on the line (marketing) is how to price these deals. More specifically how to put numbers on rehabs. I am a recently college graduate who has hardly owned anything in my life, certainly not a house. How can I learn what it looks like to need a new carpet and what it might cost to replace it? Rooftop, windows, cabinets, etc.
Thanks for the help in advance and I apologize for the lengthy post!
-Alex