Estimating deal repair costs from home

[Draven Stallings]

Hey, my name is Draven. I am currently attending college studying accounting and entrepreneurship. I have been interested in real estate for some time. I was hoping to start doing wholesale deals to get some capital and begin saving for my own real estate investments. Does anyone buy real estate in an area you don't live? If so how do you accurately estimate repairs without going to the house?

[Matt J.]

Hi Draven,

We're working through the process right now ourselves. Many of the gurus suggest building a "power team" in the remote area. In that team, you need a trusted contractor to evaluate potential purchases and estimate rehab costs before you make an offer. The "trusted" part can be a challenge. We find lenders and property managers are great sources for local talent. They have worked with these people, know their skill level and reliability, and they have an interest in maintaining a long term relationship with them as well as you. However, finding them is only half of the strategy. You need to keep them honest. @David Greene recommends leveraging the other members of your "Core 4" team to act as checks for the rest. Even with the best people, things can slip. Asking your PM or even a trusted agent to check on rehab progress adds another layer of accountability.

Best of luck!