Worcester, MA Newbie

[Jerry Carranza]

When I graduated college, I thought buying a house was something I would do much later on in life as it was not something I wanted to think about or spend money on at the time. A couple years passed and I stumbled upon the BP Podcast which changed my entire perspective on real estate. Throughout the past year I have spent countless hours listening to podcast episodes, watching YouTube real estate videos, and reading books/guides/forum posts. 

Even though I am a newbie by all metrics, I think it is finally time to formally introduce myself to the BP community as an aspiring real estate investor. After spending the better part of a year learning about the different strategies and niches available, I can safely say my interest lies in the Wholesaling and the Buy and Hold strategies. Now, I know there is a collective sigh on the other side of the screen thinking: "another new guy interested in wholesaling" but I believe it can be done, so long as there is integrity and proper education/preparation. 

That being said, there are many gaps in my knowledge which I would love to hear from the community about. Some questions off the top of my head are:

1) Aside from years of experience, what is an accurate way to estimate rehab costs as a wholesaler? I read an article which lays out a simple formula of multiplying the sqft of the property by the rehab cost per sqft. What are the strategies other investors are using that you have found successful?

2) Double vs. Simultaneous closings vs. Assignments. I believe there is a subtle difference between double and simultaneous closings regarding escrow but what has been the general experience of MA wholesalers with any of these 3 strategies for closing deals?

Please feel free to reach out at any point, either by the comments below. Apologies for the long post but I look forward to engaging with the community and getting to work with some of you  in the near future!

Regards,
Jerry Carranza

[Troy Ramey]

Hi Jerry and welcome to the forum (officially). I can't help with the second question as I live and invest in the DFW area, but I'd be happy to weigh in on the rehab budget question. The article you pointed to is a great way to find the numbers but I use a slight variation of that:
I calculate somewhere around $12 to $14 per square foot depending on the finish level first. Then I go through 6 major systems/features (electrical, HVAC, plumbing, roof, windows and foundation) for defects or issues. If any of these systems/features need replacement/maintenance, I add these numbers to the first estimate. That will give you a rough estimate on rehab costs. It may be difficult to estimate some of the major system repairs initially, but you should be able to get an idea of cost by asking around here or talking with some contractors.

Remember that construction materials, labor and certain issues with homes will likely vary depending on geography.