Wholesale rehab estimates

[David Watson]

How do you wholesalers estimate your rehab cost when running your initial numbers? I have a formula that I've been looking at that vaguely estimates depending on square footage and what kind of rehab is needed, but I want to see if there is anything that is a bit more accurate. It seems that the numbers I'm coming up with is on the high side, making good deals not so good. What are some of your strategies?

[Lydia R.]

@David Watson I totally understand wanting to get accurate numbers and a well priced deal, but heres the reality, you can bring 10 investors to see a house and they will have 10 different rehab estimates. So as a wholesaler your job is to get the ballpark. Dont call a 50k rehab a 20k rehab, thats what the bad wholesalers do. But you can call a 50k rehab a 45-55k rehab. So get a good ballpark but dont stress over a few thousand dollars. If anything its better to be a little bit too high than too low. Hope this alleviates some of your worry!