One mistake I see investors make is estimating the rehab themselves and waiting until after closing to get real contractor numbers.
A $50K rehab can turn into $70K–$80K pretty quickly once labor, materials, permits, and unexpected repairs are factored in.
Before closing, I’d want: • At least 2 detailed contractor estimates • A clear scope of work • A realistic timeline • Extra room for unexpected expenses • My financing lined up before the project starts
Whether you’re using cash, business credit, a line of credit, or another funding source, always do your own due diligence on the numbers and only leverage what you can realistically afford.
Do you normally get contractor bids before you close, or after you already own the property?
Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
2d
Why would somebody hire a contractor for a property they don't own?
Buying dilapidatedproperties, fixing them up and selling them to retail buyers is a business, not a job. Any business that cant accurately estimate execution should fix that problem. Actually its not even a problem, its an opportunity for a solution. Learn to estimate remodeling, estimators have been doing for a long time.
Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 14 posts · 3 votes
1d
Quote from @Nicholas Floyd:
One mistake I see investors make is estimating the rehab themselves and waiting until after closing to get real contractor numbers.
A $50K rehab can turn into $70K–$80K pretty quickly once labor, materials, permits, and unexpected repairs are factored in.
Before closing, I’d want: • At least 2 detailed contractor estimates • A clear scope of work • A realistic timeline • Extra room for unexpected expenses • My financing lined up before the project starts
Whether you’re using cash, business credit, a line of credit, or another funding source, always do your own due diligence on the numbers and only leverage what you can realistically afford.
Do you normally get contractor bids before you close, or after you already own the property?
If you are paying to have the bid done, it's more likely you'll get a contractor interested.
But, let's face it. people don't work for free and they shouldn't ne taken advantage of.
In the real world, the house isn't even yours until after closing. And that often falls apart.
There is great value in learning the value of estimating your self, it's fast, you know it's done the way you want and it prepares you for the job of the flip.