Got interested Seller, now I need to get estimated costs

get out the business.

Jokes,....kind of

This property has everything every investor is looking for;

1.UNLISTED!!!! This is like finding a winning lottery ticket

2.Assume the owner wants to sell

3. Neighbors hate the house and will love anyone who purchases it

4. You have an outside idea of what the costs are

5. You have a contractor who you know and you can easily negotiate his costs to rehab

6. See #1. An unlisted property will have investors salivating like wolves to sheep.

At the very least look into it. You will regret it if you don't.

I agree ugly houses draw investors like cheese to, will you get the idea, any way as long as the building is sound, with no major problems it can be rehab. If you dont feel good about the rehab then flip it to another investor. But do something with it, Action+knowledge=$$$$$$$$$$$$$$$$$ in your pocket......

Thanks for the feedback!

I would like to get this under contract before bringing in a Contractor who may steal the deal.

I can estimate the holding costs pretty well, but the HUGE amount of repairs is what I am talking about. What's getting me is how and when to get myself on the contract.

Would designing the Purchase Offer with a contingency of repair costs coming in under a certain dollar amount be best.

I know, I also need the deal to be contingent upon third party approval?

I would like to not have to close. Just get an right to assign and sell my right to assign without going to the closing table.

I realize sending a detailed report to the 3rd party buyer with Purchase costs, Construction Costs, Holding Costs and Selling Costs will look better. I am just concerned that I will take too long to do this because of my inexperience. I am coming up with a Cost per Sq. Ft. to rehab at around $150.00 per sq ft., for Massachusetts.

I did download a Repair Expenses form from here about a week ago. I would have to spend some time in Home Depot filling it out, but this form is not going to cover all the things this house needs.

Wheres the money coming from to do the rehab, your pocket or somebody elses, If you have never completed a major rehab, I would really rethink it,To just buy wholsale and flip it, then find another house thats not in as bad condition that needs some minor rehabbing and complete project first to see how it goes for you, you may decide that rehabbing is not your cup of tea, I once upon time had a couple of rental units,I hated being a landlord everytime I turned around somebody has tearing something up, I just got tried of baby sitting the units and spaending major Money when they moved out to get it ready for the next one to come in tear it up again. No way do I want to be a landlord again, just not my cup of tea, but you know what I dont have a problem going out and finding you a nice house to use as a rental, my niche is finding and flipping, dont want to own anything.......I hope this helps, there are endless deals out there...Action+Knowledge= Success....

talk to the contractor, tell him you have a property you're looking to sell and will be flipping it and will recommend him to the person buying if they wouldn't mind doing an estimate for you.

Don't mention you don't have it under contract, etc etc, just get the estimate, get the owner info, negotiate what they want, add your fee, which should be no less than $5k, and go from there.

If the contractor wants something for his time, and its reasonable, give it to him.

I am looking into the aspect of working with rehabbers on properties I find and invest in. My suggestion is like elix and des. Just go in there and have the contractor look at it, I would have it under contract with an option period. In Texas we have something in paragraph 23 that is called a termination period that allows us to drop a contract for no reason at all and you normally pay nothing to $10 for it nothing more normally. It gives you time to bring in someone to back up what you think the rehab will cost if your numbers are good sweet if not negotiate a lower price.

The contractors here in Texas have had no problem giving me free estimates. Though, I have personally been devouring ever book on how to see damages to anything under a roof and the roof itself ^_^. I want to be able to do my own homework and not have to depend on them. I believe any investor that works on rehabs should know how to do it. You get paid more than wholesalers because you take more risk and you need to know what a wholesaler does and more. That and you normally have money to invest to make more money.

I am personally fighting with the idea of hard money lenders as a way of coming up with funds. I am just trying to figure in cost to profit. I'll figure it out and you will too if this is what you want to do. Otherwise keep assigning if you learn to do it well you can make a career out of doing just that as well.

And keep making offers, finding deals, and keep learning there is so much to learn don't stop and let ANYONE get in your way!