OfflineWe have a bank owned property with pool available. They're asking $73,000. We're working with realtor to offer $37,000 due to anticipated repairs and ARV is in the range of $105,000, and want to assign it. Needs roof, a/c, has no cupboards or sink in kitchen, no sink or toilet in mstr bath, foundation may have problems, a few pool tiles need replacing, and wiring may be an issue. We're guess-timating around $30,000. Are we close?
Thank for your valuable input!
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First go to Student Resources on the low left of this page and you may need to get a contractor to give you a bid, Id get three bids from three different contractors, let me know if this helps.Fundation problems can be a problem but not always, Jim
jbischoff
Boy am I impressed with the speedy response and great info! Will do.
Thanks again...
I'm very new at this myself, but your story sounded exactly like mine minus the pool. I was guessing 15K-17K and we finished at $29K. My husband did a lot of the painting and other odd things. We bought cabinets at home depot, had to stain them, and hire someone to install. We also hired flooring people, electrician, plumber, furnace man, and a company to paint the exterior and new gutters. We weren't planning on putting that much into it at first, but when we want to sell it will be that much easier. We are currently getting ready to rent it out. Hope this helps a little.
Gina
Gina, this is so helpful. Don't plan on rehabbing ourselves but assigning. It sure
helps to hear from someone whose been there and also just starting out!
Are you and your husband focusing on rehabs? What else are you looking for? If you would, PM me about where you are located.
Look forward to hearing from you! Gail
if your realtor has been working the business for long, they might be able to help with an estimate, but the best source is having a handyman or contractor to come and walk through with you. I would have them give me an estimate and I would always estimate higher and then add 10%. Things always seem like they are not that bad until you get into the project and it ends up taking more time and material then you figure.
Always figure high and if you are to high then it is money in your pocket.
Good Luck
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I am a contractor you should find a general contractor to keep by your side. most contractors give free bids. maybe run an ad on craigslist something like investor looking for contractor for several jobs. you can work something out with one so that you can have him do the walk through with you or Realtor. and make him understand you are looking for a long working relationship and let him know you get 5 bids on all work done that should help keep him honest. maybe offer him an incentive like $100 just for the bid on any property you close on.
Thanks,
Sam
Can anyone assist with how you figure the cost of repairs to complete your max offer? I can see doing the contractor estimates after your offer is accepted but how do you figure the amount for your offer. Thanks.
As mentioned before you should get a contractors if you need estimates that are somewhat on the money. You can also go to Lowes and search the installed prices of the items you need and see what it will cost + installation.
Hope this helps,
Joshua
I think I have the steps now. Do all I can as part of the offer to be as accurate as I can. If needed get a full estimate during my inspection window if the offer is accepted. If the estimate and my initial figures are off I can back out of the deal due to amount of repairs needed. Sound about right?
Thanks again.
http://craftsman-book.com/products/index.php?main_page=index&cPath=51
You can get a site license for under $100 and have access to all the books. It will also let you know if your contractor is giving you a legitimate bid.
Also, you will have to try a different exit strategy than the assignment with a bank owned property. Banks won't let you assign a contract.
Another way to take care of doing estimate yourself is to research into different estimating software programs. I am a contractor and I use one all of the time.
WARNING: Be VERY careful with this as you still have to input the information that needs to be estimated and if you lack the basic knowledge you can still get yourself into trouble. One very such example would be with foundations....if a foundation is damaged you may need to do some work to the joists or band board or maybe the sill plates and not just the foundation.
I am just letting you know that there are programs that you can purchase and use without having to receive the services of a contractor.
I hope this helps.