OfflineWhen calculating an offer to wholesale to a buyer how do you address how much to include for repairs since I am not going to be doing the repairs? I might think that it would take $10K in repairs but my buyers may think it would need $30K or more in repairs.
Thanks,
Mark
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Hi Mark, I would do a walk through with at least three general contractor to make sure their is no foundation or other major issues. Also, he/she would be able to give you an estimate for the repairs or renovation.
Raymond
Hi Mark its important that you get those repair cost as close as possible and using three general contractors to get estimates or bids is wise or one( contractor) you know to be very honest and fair, Jim ( foundations issues can be very closely if they need to be repaired)
jbischoff
it's not really what You think it may cost for the rehab; it's what the estimates show. You want to go with the highest, so that your numbers are as conservative as possible when presenting to a buyer.
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Valerie
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I'm in the similar situation as Mark. How do you get the handyman to come out to estimate the repair cost? You have to pay them some $$ to get out there to do the work before I present the numbers to the buyer? I'm not sure the buyer will agree with that estimation. He might back out that deal. I'm stuck with the bill from the handyman. I would like to learn to do this as a win win situation. I believe paying people well if they do a good job. I have to make sure I get pay first.
How do you get the estimates before the offer? Should I setup a walk-thru and bring a contractor so he can workup an estimate before I even make my offer? Thanks.
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Or less of Fair Market Value.
I never get a repair estimate, I just get the price way low
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I never make offers on MLS properties. Its much easier to deal directly with the owner.
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Karen says Yes. But wouldn't this burn out your contractor? Since you're wholesaling, the end buyer might not go with that company. And if you're doing 25 offers expecting 1 to get accepted, isn't this going to annoy and frustrate your contractor? Besides, who would help you estimate 25 properties for 1 potential deal, and then not even have a guarantee they would get the work? You must not be doing 25:1 and only working with FSBO?
Marc
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Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
great question. new people can really use this... mark i have friends in bristol tn area. i used to live at 1020 hill street. send me a pm....