Took action .. now looking for some advise

[Marco Guerrero]

Hi Bigger Pockets community, my name is Marco Guerrero and I live in the Dallas / Fort Worth area.  After listening to Bigger Pockets Podcast for two months and reading a couple of the recommended books, I decided to take action ( highly encouraged by the guests in the shows ).  I bought my first property to flip and will be closing in two weeks.  I bought it with a wholesaler and using hard money.  Now that I have taken the biggest step, I am a little anxious about the remodeling part - the house will need new bathrooms, new kitchen, new flooring, minor roof work and minor foundation work.  Since this is my first flip, I do not know much about the contracting piece and best materials to use to stay within budget, but make the property attractive for sell.  I am hoping that you can help me with some advise or a little bit of mentoring.  What are the best material to use, for the areas I need to renovate and best places to purchase them. If you are in the DFW area, can you recommend any honest and reliable contractors? also looking for a great real estate agent.  Your help in this matter will be greatly appreciated.  I will pay it back  or pay it forward.    

Thank you  

Marco

[Kuba F.]

I could be wrong, but the questions that you're asking worry me that you don't necessarily understand the scope of work involved, and therefore don't understand really how you're going to make money and what your risk is.

Starting from the top, assume that everything your wholesaler has told you is untrue until proven to be true.  This is not a dig at wholesalers, it's the nature of the relationship.  

First you need to find the after repair value of a property and the rehab cost estimates before you make an offer.

The after repair value is determined by looking at comps and looking at the level of finishes that those comps have.  This will help you determine what kind of rehab to perform and how much it will cost.

If you have made an offer already and are in the due diligence period, then I would be getting as many contractor estimates as you can within that limited time frame to see if the cost to repair the property is within acceptable margins.  

If not cancel the deal immediately before your contingency period expires.