Posted about 2 months ago

Remote Investing Repair Estimates

Out of State Investing...repairs can definitely be a challenge since you're not there, but you should have a power team in that market that can help. Here are my thoughts on the process:

1. What are your buyers looking for - QUALIFY them. This includes what repairs can they handle? Know what they want repairs wise will help you right away. Additionally, when you are qualifying them ASK "What should I estimate for repairs cost wise?" Do they do it by sq ft, by level of repair needed, by job, or even room by room.

2. Look at What does a rehab in your market look like if you were to do it all through Lowes? Now go to the new market's zip code and do the same rehab there....what is the price difference. This will give you a good feel for that market. 

3. Talk to your power team: realtors, property managers, other investors. This will keep you in touch with what is common in that market.

4. Finally, when it comes down to an actual deal I use the description in the mls listing (or from the FSBO) and the pictures available. Then I get someone else to look at it. My realtor, my property manager or a partner. Then I run the numbers based on my previous research.

5. Now you can present it to a buyer based on the information above. I give a general description of the repairs and an estimated cost. If you present it in a format that fits that buyers needs based on (#1 above) then they'll be happy. 

* As mentioned previously, if you are investing out of state or in a different market. It is going to take time and it is going to take a lot of research. After you put in the effort you'll be as much of an expert there as at home. Put in the effort and you can do this anywhere!

Best of Success! ~Andrea