All Forum Posts by: Gurjot Grewal

I am unsure how to word this to search the forum. I'll give an example. Say I get an offer accepted for 300k on a property, and the appraisal during my option period shows it's worth 380k. At what point can I use the 380k value to finance my property? Could it be done right away? 

@Andrew Postell Thank you for the advice. I've connected with some investors in the area since your post and I'll try to join some online groups as well. This does seem like something that comes through repetition and experience. 

@Eliott Elias Makes sense, thanks for the advice!

@Polo Vazquez next time I have something under contract I will try this. Get the realtor to walk and provide a soft quote seems like a good idea. 

@Matthew Irish-Jones That's a fair point. I am probably underestimating the rehab on that specific one. I have made a lot of offers at this point, I feel that in order to not waste my time agent's time I only get him to walk it once it's under contract. All my offers include an inspection period. And then I will get my inspector and contractor to walk it. What do you think? 

@Luka Milicevic I agree. I say mistake because my estimate was way off, about 1/4 of the contractor's estimate. But that will come with time. Do you have any tips for ballparking numbers? 

@Luka Milicevic Thanks for the reply. I feel I have a pretty solid boots-on-the-ground team, but I don't want to waste their time unless the property is under contract. Last week I had a property under contract but I was way off on the rehab estimate. My project manager and contractor walked it and gave me an idea of the costs. My inspector confirmed a lot of the things that needed work and was in line with what my contractor told me. The costs were high enough to kill the deal and I had to back out. The next one I don't want to make this same mistake. 

Hello BP

I'm planning on doing a long-distance BRRR. Currently making offers and looking for a deal. J Scotts' book on estimating rehab costs has been helpful, I'm almost done reading it (will probably re-read it). But when making offers at a distance I'm still having a hard time estimating rehab costs, which is making it hard to make an offer.

There's a property on the MLS that's been sitting for 100+ days. I can see the kitchen, bath, flooring and walls all need work. On google street, I can see the siding needs work. One room has a hole in the ceiling. In some pictures, the lighting is on so I can assume some of the electrical is in working order. It's a 1800sq foot duplex.

How can I come up with a rough rehab number to see how much I should offer on this? I am educating myself on developing a scope of work and I know after a couple of deals I will start to grasp the numbers better. But for now with it being my first one, how can I get to a ballpark number in order to make an offer. Of course, once under contract I will have a contractor walk it. 

Hello BP,

My property manager told me to avoid these three areas; hilltop, south linden, driving park. What im looking to do is BRRR in columbus to pull some of my money out ( I dont mind leaving money in the deal).

The problem is most of these brrr opportunities im seeing are in the neighbourhoods I was told to avoid. 

-Can anyone share their personal experiences investing in these areas ? 

-do you regret investing in these areas? 

@JD Martin  Yes that is fair. My agent is actually the one thats encouraging me to make more offers. I’v been trying to make an offer a day, but maybe I need to be a bit more selective with what I offer on. 

I have every intention to close as long as the numbers make sense. In some cases I have been making low offers to make the numbers work. I don't believe he has a problem with that. But I see what your saying as my offer may come across as less serious this way. 

@JD Martin  I have an agent, he sent me a google drive with a couple walk through videos (received from the sellers agent i’m assuming) after going into contract. Maybe I should've asked for this before. If I’m making multiple offers is it still fair to expect the agent to walkthrough before the offer? 

 @Dustin Allen I’v made quite a few offers with this agent. Taking the 100 offers to get a great deal approach. I thought maybe it wouldn’t be appropriate to ask him to do a walkthrough for every offer. But in this case where a rehab is expected next time I will ask. Thanks for the reply. 

Hello BP, 

Im investing OOS. Got a duplex in a c+ area under contract. The listing had no pics of the interior. Outside had new siding and alot of other work done. 

After I made an offer it was accepted. They sent me videos of a walk through and I could already tell it was much worse than I expected. 

Regardless my eye is untrained. So I still got an inspection and a contractor to walk it. Rehab was quoted at 250-300k (was told may as well just tear it down) so I terminated the contract as my ARV was 270k max.

-is there anything I could've done at the point of receiving the walk thru videos?

-The contract was signed, was my best option to act on my inspection contingency ? 

-Would it be fair to request videos of the interior prior to making an offer ? 

-any other tips to avoid this in the future? All in im out $800 and some wasted time. Just trying to take this as an opportunity to learn and better my approach.