Updated over 6 years ago on . Most recent reply
Need some help in estimating
Ok, I'm new to wholesaling. It has taken me a while to get the courage up to jump into the arena. Took a seminar from a wholesaler, spent $400 and just got the basics I could have looked up on the internet. I need a little more than just the basic outline of pricing for wholesaling. Stuff comes up w/every house that just wasn't covered in seminars. And I don't know where to get the answers, quickly.
Most Popular Reply
@Lisa Payne Naeger, unfortunately, repair costs can vary widely based on geography and availability of labor, so it is difficult to give a one size fits all answer on these. I know what basement waterproofing and foundation repair typically costs in Omaha, NE, but I have no idea how it compares to your area. I know I can get Lifeproof LVP installed and trimmed out here for $6/sft, but again, not sure if that is low/high/about right for your area.
When I first started out, I spent a LOT of time at Lowes, HD, and Menards and made a big spreadsheet with pricing of commonly used materials (appliances, cabinets, doors, windows, trim, flooring, paint, shingles, etc.). This really helps understand the material costs.
To get a better understanding of labor costs, ask for referrals to a really good GC. Ask the GC if he/she would be open to going with you when you look at some investment properties and answering some questions in exchange for an hourly rate or flat fee per property. While you are walking through the properties with the GC, ask every question you can think of on how they determine pricing on different repair items and take lots of notes. Consider the flat fee an investment in education. Do this enough times, and you will start getting a good understanding about estimating. You could take this same approach with an experienced investor in your area.
Also, J Scott has a book on estimating rehab costs that is published on this site, you should pick it up - it has some great info in it.
Good luck!