How come wholesalers rehab estimates are usually garbage

Question

Estimates of rehab by wholesalers tend to be garbage. I am thinking about organizing a master class at Foxwoods casino with a field trip to distressed homes to sole this challenge.

would wholesalers be willing to spend $500 to strengthen their numbers and increase their credibility?

Kyle Mccaw · Answer

@James McGovern

You're spot on — most wholesalers don’t care about being accurate because they’re not paid to be right. They're paid to assign the contract.

A lot of them are playing a volume game and just need a few buyers to bite. Whether the rehab number is off by $20k or $50k doesn’t matter to them — they’re not the ones doing the work or holding the risk.

And let’s be real: the wholesalers who do want to improve are usually newer and broke. If they had $500 to invest, they’d spend it celebrating their first deal — not on a master class in estimating foundation and HVAC costs.

Your idea is solid, but the better audience might be aspiring flippers who keep overpaying because they believe these junk estimates. They’re the ones who would benefit most from a walkthrough-style education. Just my two cents from years of watching this cycle play out.

Eric N. · Answer

I am a wholesaler. I am also an investor/buyer. As a wholesaler I no longer give rehab estimates. Lately, I don't even give ARV when I call buyer I know. I just say "I have SFH at 123 Whatever Street, with 3 br/2ba, 1500 sq ft, sending you pictures now. I want $XYZ for it". Period. No ARV, no rehab estimates, nothing.

As an investor, I don't rely on what other wholesalers tell me about rehab costs and ARV. I don't need a nanny or babysitter. If I don't know how to figure ARV and rehab costs may be I should not be in the investment business.

Stephen Morales · Answer

Doesn't sound like a bad deal if you ask me. The time you save from locking up bad deals is more than worth it for those struggling.

Jeb Durgin · Answer

Dude, you are so right! "Wholesaler rehab estimates tend to be garbage" is the understatement of the century. It's like they're playing dartboard with a blindfold and a broken arm. And that "every investor runs their numbers differently" excuse? My eyes just rolled into next week. Half of 'em don't even try, just slap a price, an ARV, and a prayer on it.

A masterclass at Foxwoods with field trips? Genius! But $500 for a wholesaler to fix their numbers? My friend, I love your optimism. But doubt it. They'd probably rather just keep blaming the "different investor" math.

Alan F. · Answer

The best estimators for residential remodeling are estimators that work in residential remodeling.

There are people that have trained and worked hard at learning the craft of estimating.

Eric N. · Answer

You're absolutely right—rehab estimates from wholesalers are often way off, and it’s not always accidental. Sometimes it’s by design: the wholesaler may lowball the numbers to make the deal look more attractive. Other times, it’s just lack of experience—they’re pulling outdated figures from online sources or just guessing.

Experienced wholesalers usually avoid putting out a rehab number altogether, and for good reason. Rehab costs can vary wildly depending on who’s doing the work and how. A contractor with materials in stock and a full-time crew will spend a lot less than, say, a doctor hiring a GC who charges full retail plus a management fee. And one buyer might go for builder-grade finishes, while another wants high-end everything. Same house, very different budgets.

That’s why the real rule of the game is to give a realistic ARV (to the extent you can) and an asking price—and leave the rehab estimate up to the buyer. It’s their responsibility to figure out what it’ll cost based on their own strategy, resources, and standards.

As for spending $500 on a class—personally, I wouldn’t. If I need real rehab numbers, I’ll get line-item estimates from 2–3 GCs to qualify for a hard money loan. Or I’ll use my cheat sheet based on per-square-foot rehab averages in my market (light, medium, full gut), or tools like Blue Hammer. But even then, I treat those as ballpark figures just to help me calculate max purchase price—I don’t advertise them when marketing a deal.

So I think your class idea has potential for newer wholesalers, but most experienced ones already know that rehab estimates are subjective and prefer to stay out of that liability altogether.

How come wholesalers rehab estimates are usually garbage

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