Wholesaling For Newbies: How To Estimate Repair Costs
Hi BP,
I want to start a series of threads for newbies starting out dirt broke like me to utilize as a step by step process (very concrete and not ambiguous) so they can reach their first wholesale deal.
I was reading on this blog written by Brett Snodgrass (some big, successful BP guy)
https://www.biggerpockets.com/renewsblog/why-whole...
about how to get an estimate of repair costs for a property you are looking to wholesale. He states that you should find roughly 5 contractors to estimate repair costs. The issue is that if you don't have much money like I; getting these estimates can actually cost a lot of money. Just to try and get an ESTIMATE to make an electric outlet for my stove the other day the electricians wanted $100-$150. If us newbies were to do this 5 times to get 5 quotes as Brett suggested it would be much less feasible to try and wholesale. I commented on the blog and Brett promptly responded that "the better relationship you have with them, the more likely they are to waive a bid fee."
The question is: How do you develop these relationships to that point before making your first deal with these contractors? I think estimating these rehabs, which is essential to the mathematics of determining a proper price to offer your distressed seller and a big reason wholesalers get a bad rep, for a reasonable cost could make or break the beginning wholesaler.