Determine the measurement for each item of the rehab (once you know the unit measurement and the cost per unit, adding up the totals should only take about 15 minutes). Example: 300 sqft = wood floors 13 squares = roof 15 windows
Full Answer
Why should wholesalers estimate rehab costs?
$15 per hour = 1 laborer demo; $4.00 per Yard = carpet; $1.50 per lineal foot = gutters; Step 3: Determine the measurement for each item of the rehab (once you know the unit measurement and the cost per unit, adding up the totals should only take about 15 minutes). Example: 300 sqft = wood floors; 13 squares = roof; 15 windows; 10 hours demo; 500 yards carpet
How much should I charge for a rehab contract?
Need A Real Estate Investing Mastermind and Coach?Join the Community at https://www.realestateinvestingscoop.com/Join the Free Facebook Masterminds: "How to ...
How long will it take to complete a rehab project?
The formula we use for determining the most that you can pay for a wholesale-able or retail house is: ARV – Rehab – B/S/H – Your Profit – Investor Buyer Profit= Maximum Allowable Offer (MAO) A fter R epaired V alue Minus R ehab Costs Minus B uy/ S ell/ H old Costs Minus P rofit Equals Maximum Allowable Offer
What is the repair cost estimator?
How to Estimate Repairs in 15 Minutes When Flipping Houses. In this video tip, Jerry discusses how to estimate repairs on any deal in 15 minutes or less. When it comes to making offers on houses, you have to be able to quickly and accurately estimate the cost of repairs. ... This detailed rehab estimating checklist leverages Jerry’s knowledge ...
How do you calculate rehab for 15 minutes?
0:155:41How to Calculate Your Rehab Estimate the Right Way in 15 MinutesYouTubeStart of suggested clipEnd of suggested clipThat's about 25 offers a week five offers a day that means I'm only buying about two to threeMoreThat's about 25 offers a week five offers a day that means I'm only buying about two to three percent of the properties that I look at and put offers.
What is the fastest way to estimate rehab?
0:371:56Quickly Estimate Rehab Costs (2 Minute Method) - YouTubeYouTubeStart of suggested clipEnd of suggested clipClean and a quick resale for under market value I like to use a mark of five dollars per square footMoreClean and a quick resale for under market value I like to use a mark of five dollars per square foot for that.
How do you calculate wholesale repairs?
0:0711:15Quick Calculating Repair Costs For Wholesale Deals - YouTubeYouTubeStart of suggested clipEnd of suggested clipAnd kind of look at them as far as your properties come across your plate compare them to theseMoreAnd kind of look at them as far as your properties come across your plate compare them to these properties. And then calculate the price per square foot.
How do you calculate repairs?
1:107:34How To Calculate The Cost of Repairs on Any House - In Under 60 ...YouTubeStart of suggested clipEnd of suggested clipYou need to quickly get to a ballpark number so that you can know where you stand before wasting aMoreYou need to quickly get to a ballpark number so that you can know where you stand before wasting a lot of time when the seller gives you their number in seconds.
What is the most accurate method of estimating repair costs on a rehab project?
Detailed Estimation MethodDetailed Estimation Method Detailed Estimates by Scope of Work or by Room involve a lot more time and due diligence, but it is generally the most accurate way to estimate repair costs.
What is rehab budget?
A rehab budget is the best way to not only get your fix and flip project funded, but also ensure your draw requests are paid out on time. This will keep the momentum on your renovations going and reduce your carrying costs. Once you find your property, draw up a budget that reflects your vision for the project.Jan 15, 2020
How do you calculate home repairs under 60 seconds?
2:077:11How To Calculate The Cost Of Repairs On Any House In 60 ...YouTubeStart of suggested clipEnd of suggested clipFirst is the square footage of the house. This is usually really easy to find on zillow redfin orMoreFirst is the square footage of the house. This is usually really easy to find on zillow redfin or realtor.com.
How can I estimate the value of my house?
5 ways to find out what your house is worthEnter your address into a home value estimator. ... Ask a real estate agent for a free comparative market analysis. ... Check your county or municipal auditor's website. ... Identify trends with the FHFA House Price Index calculator. ... Hire a professional appraiser.Sep 24, 2021
How do you calculate after repair value?
To understand how to determine after repair value of a property using the average price per square foot or square meter, use the following formula: ARV = APS × AREA....TRC – Total repair cost;ARC – Average repair cost per sq. ft. or sq. m; and.AREA – Area of the property that requires repairs.Jan 31, 2022
How do you calculate renovation value?
Here's a quick example: Say you recently purchased your house for $450,000, and you're remodeling your kitchen. Your estimate from the contractor for the project is $50,000. Your estimated ARV would be: $450,000 + (70% x $50,000) = $485,000.
How do you calculate labor and material cost?
1:296:02How to calculate cost of labor ? Quantity Survey / civil engineeringYouTubeStart of suggested clipEnd of suggested clipThis data is actually just enough to determine. The Labour cost right about 15,000 CFD first classMoreThis data is actually just enough to determine. The Labour cost right about 15,000 CFD first class brickwork shall come directly into the solution.
Lesson 12: How to Estimate Rehab Costs
I have bad news for you... nobody is going to learn the art of estimating repair costs by watching a 20-minute video.
Pay Attention & Take Pictures
As I mentioned in the property walk-through lesson, it's essential to take photos (lots and lots of photos).
The super quick rehab estimate
The big question I faced when I started writing this section was how do I teach people how to estimate rehab costs if they've never done this type of work before... Unfortunately, the answer is there is no quick way to show you. I'd have to create an entirely different course to teach someone how to inspect a house and crunch all the numbers.
Market Adjustments
While I believe the numbers on the rehab checklist will give you a good "average" to use when calculating your costs, there are always exceptions.
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Understand your buyer and the neighborhood
Before you start calculating rehab costs, understand what the final product will look like. Some high-end remodels take months—cosmetic renovations take just days.
Tour the property thoroughly
Next, with a good understanding of how you want the finished product to look, walk through the property very slowly. Take a lot of photos or record a video on your phone so you can easily recall the condition later. Trust me, you won’t remember it all!
Write down the problems
While you are still on-site at the property, go room by room and write down its condition, as well as any needed repairs. For example, if you walk into the living room and see carpet that looks and smells like dog urine, write down “replace carpet in living room.” Also, jot down a quick estimate regarding the size of the room.
Condense your list into 25 categories
Next, take your comprehensive list of repairs and classify each one into one of the following 25 categories, which encompass all of investment property renovation. For example, if the living room and bedrooms need carpet and the kitchen needs vinyl, group all of them together and include them under “flooring.”
Determine a rehab price for each category
Once you have your 25 categories spelled out, it’s time for the most difficult part: estimating the rehab amount for each category. However, breaking everything down into the basic components of a renovation makes estimating rehab costs much easier.
When in doubt, ask for help
Don’t be afraid to ask for help. You can do this in a few different ways:
Biggest Transformation Flipping a House Ever!
Check out the amazing before and after slideshow of one of Jerry’s recent fix and flip projects in Charlotte NC. Comment below what you think of the transformation.
Why NOT to Hire a General Contractor When Flipping Houses
Most fix and flip investors want to hire a general contractor to handle the rehab. Find out in this video why that is a bad idea and why you should manage and build your own team of subcontractors.
How to Estimate Repairs in 15 Minutes When Flipping Houses
In this video tip, Jerry discusses how to estimate repairs on any deal in 15 minutes or less. When it comes to making offers on houses, you have to be able to quickly and accurately estimate the cost of repairs. Stop...
Estimating the Cost of a Roof WITHOUT a Ladder or Tape Measure When Flipping Houses
This is one of the coolest and easiest tricks to learn. Using this hack-method from now on when you’re looking at a potential deal that needs a new roof, you’ll be able to quickly and accurately determine the cost to...
The Right Way to Pay Contractors When Flipping Houses
Many investors have bad experiences when it comes to paying contractors. Learn Jerry’s method on how he pays contractors. If you follow this method you will never experience getting screwed again!
Understanding the Fix and Flip Buy Formula
In this video training, jerry explains the only 2 things you need to know to quickly determine the buy price on any fix and flip deal.
What is wholesale real estate?
Wholesaling real estate is when a real estate wholesaler puts a distressed home under contract with the intent to assign that contract to another buyer. The wholesaler doesn’t plan on fixing up or selling the property. Instead, they market the home to potential buyers for a higher price than they have the property under contract for.
What do you need for a wholesaler?
A real estate wholesaler needs a title company, a contractor and an appraiser on their team. These professionals add a level of professionalism to your team and help your entire wholesale transaction run more smoothly. Each professional will save you time and money in the long run.
Why is distressed property good for wholesaling?
Distressed properties are typically best for wholesaling because they can be purchased under market value. Distressed properties are those in disrepair or those with owners who are motivated to sell quickly. Finding a distressed property will enable you to sell the property for more than what you put it under contract for.
How long does a title closing take?
The closing, or settlement as it is also known, will take place at the title company’s office and will last about 90 minutes. All parties will come together and the deed will be transferred to the new owner. Once this is done, it will be the completion of a wholesale deal.
When approaching a homeowner, it is important to go about it in a delicate way.?
When approaching a homeowner, it is important to go about it in a delicate way. SInce a wholesaler is not a conventional real estate professional they will need to gain the homeowner’s trust before moving forward. This can be done by being professional, courteous and on-time when meeting the homeowner.
Why is it important to negotiate a deal with a buyer?
This negotiation is critical because it will determine how much money you make off the deal. Your profit will be the difference between what you purchased the property for and what you’re wholesaling the property for.
What does it mean when a distressed property needs renovations?
A distressed property that needs renovations means a higher margin for the investor that you sell the property to. This higher margin will allow you to make money off the deal as well.
