«

»

Jan 30

Print this Post

Real Estate Investing – A Simple Way to Estimate Rehab Costs on a Wholesale Property

Share this!

handy manAs a Real Estate Wholesaler I must be able to effectively evaluate a property to ensure that it meets my Buyer’s criteria before I put the property under contract. This process of evaluation includes estimating the cost of renovating a property to bring it up to the retail market value of the surrounding properties. When I look at a potential wholesale deal I must be able to estimate what it will cost to renovate the kitchen which is by far the most crucial factor of any retail sale. I must also consider the cost to replace the roof if needed, replace the windows if needed, estimate new floors and paint according to the sq ft of the property and so on…

This is a very important step in the wholesale process as my offer to the Seller depends mostly on this rehab cost estimate. I must deduct this cost from my initial offer to the Seller on the property to ensure that my buyer is still left with enough equity to make a profit after renovating the property.

So how does a Wholesaler do this? Well if you know a contractor who will go in each property lead that you get and give you a free estimate that is awesome. But honestly there are not many contractors that I know who will keep giving you free estimates on your properties without eventually wanting to get paid. Maybe you are a Contractor or have some contracting knowledge so you are able to do your own repair estimates on your property leads or Uncle Tom is a contractor and for a six pack will give you estimates all day long. However this is not the case for many who are trying to Wholesale properties to make a profit.

I have never been faced with the dilemma of not being able to effectively get a rehab estimate on a property due to the fact that my husband and my sons are all contractors and we own our own property renovation company in NJ. When I find a property then my boys or my husband will go with me to evaluate the rehab and all I have to do is give them dinner, works for me! But even experienced contractors need a resource guide to renovation costs. They need to have a material price list, estimate labor costs and even demo and disposal costs. So how do they get these price?

I want to let you in on a little secret, a contractor’s guide to renovation material and labor costs, a contractor’s bible if you will.  It’s called the RSMeans Contractor’s Pricing Guide. As a rehab company owner and being married to a contractor for over 28 years I can guarantee that 75% of contractors own this pricing guide! This handy guide has everything a contractor needs to quickly and efficiently estimate rehab costs. This guide gives you the total unit price costs for every aspect of the most common repair and remodeling projects, in a format organized for the way you build from frame to finish. It covers every step needed to complete each task, and includes demolition, installation, painting, cleaning and more. It is so simple to understand and use that even those that are new to property renovations can quickly estimate the cost of any rehab.  That means that even the newest Wholesaler can go through a property and figure out the price of a rehab so they can make an efficient offer on a property.

This Contractor’s Pricing Guide is a must have for every wholesaler and real estate investor! It has never been easier to figure out the total repair costs to renovate a property. Even a novice wholesaler or real estate investor can literally figure out the renovation costs of a property in less than 30 minutes with the RSMeans Contractor’s Pricing Guide. This guide is simple to use and gives you the cost of all materials from the nails all the way up to the larger materials needed for each project, the cost of labor and even the cost of demo and removal or materials. Seriously, How awesome is that?

If your a Wholesaler who is serious about giving your buyer the most efficient rehab estimate on a property or your just starting out in real estate investing or wholesaling than you will surly reap the benefits of having the RSMeans Contractor’s Pricing Guide at your fingertips.

You can purchase your RSMeans Contractor’s Pricing Guide here.

To Your Success,

Carol Stinson

About the author

cstinson

Carol Stinson is a Real Estate Mentor, Author and Entrepreneur who continues to thrive in today's real estate market. Her concept of success is to never stop learning new techniques and then put what you learn into action expecting results. She is dedicated to helping others succeed by sharing what works in today's real estate market. Her strategies are effective, her techniques work and she is always updating them to conform to the ever changing real estate market.

Carol's biggest passion is people! Her love for others and dedication to help them succeed is genuine and ongoing. She created Real Wholesaling in an effort to help others find their way to financial freedom through real estate.

Permanent link to this article: http://realwholesaling.com/real-estate-investing-a-simple-way-to-estimate-rehab-costs-on-a-wholesale-property/