Scrape and Rebuild Wholesales

[Kendell Johnson]

Hello BP Group!

I am running across quite a few scrape and rebuilds in my search for deals in Colorado and South Carolina, specifically. These tend to be a little different when calculating rehab costs. Also, how many wholesalers out there have had success with these types of deals? Any difference in the way you structure your IP?

Thanks for any input you can provide!

Kendell

[Troy Gandee]

@Kendell Johnson that's a tough one. It's really difficult to estimate new construction costs when you aren't very familiar with the area because you just don't know what quality of home you'll need to provide in that neighborhood. Since you do multiple markets, I don't know that I would try to get too close on pricing the cost of new construction for your marketing materials. If I were you, I would probably just try to find some sold comps on newer builds and use that. Cost per square foot will vary wildly between places like SC and Colorado largely due to the labor and materials varying between those markets.