Valuing properties and repairs

[Vincent Hardin]

Hello,

I am new to the real estate investing business. I am still in college and decided that wholesaling would be a good way to learn about the REI business and also build capital for future investments. I have starting making bandit signs and I am going to the courthouse in a few days to build a probate list to mail to. My biggest question is about how exactly to come up with an acceptable cash offer. As a raw beginner, how do I estimate repairs as accurately as possible, and also what would be the best way to arrive at an acceptable cash value to offer to the motivated seller (taking into consideration the repair costs and comps)?

Thanks!

[Fred Ramos]

Hey Vincent, there is ample information regardings both of your questions here on BP.. To sum up, I'd recommend hiring an experience contractor that could give you real and accurate information on what it'd take to repair a house.. This is a tricky part, because not every house is created equal and every investor has different strategists.. Repair estimates for a fix and flip will always be different to a fix and hold.

I hate to say it, but there is no simple, one fits all answer.. You will unfortunately have to go through the trenches and learn as you go from feedback.. Having the contractor on your side will teach you invaluable information though..

Hope that helps a bit.. Good luck!