Figuring Repairs for New Guys


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New real estate investors have difficulty correctly figuring out the cost of repairs on properties they went to invest in. Most of their difficulty is a result of a lack of experience in examining a property and figuring out the extent of the repairs needed. The good news is there are several easy options for you to consider using.

Ride Along Contractor

In order for your real estate investment business to be successful, you have to build a team or network of individuals that you work with and trust.  The general contractor that you partner with is one of your greatest resources. Bringing him with you when you visit properties will cut your time down on creating offers. He can also point out what needs to be fixed and what potential dangers there may be in the home before you ever have your first inspection done.

Estimates

Make a list of common repairs you might find in homes that you are interested in. Then, call around and get estimates from some of the contractors or specialists in your area. These numbers can be used to help you establish a best and worst case scenario. As you go to each property, use these estimates to help you predict how much time and money it may take to fix the home. Subtract this amount from the value of the home, and you will have a good starting place for an offer.

Spreadsheets
Many investors have learned that a spreadsheet and time can help you to create more accurate offers. Over time, you learn to spot problems and to know what materials you will need to perform the repair. There are real estate agent classes as well as real estate appraiser and inspector classes you can take to help you learn faster. A visit to the hardware store will help you to create a spreadsheet of all the materials and their prices you will need to do each job. S you walk through the house, make note of what you see in each room and the severity of the repair needed. Then, the spreadsheet will help you accurately figure out just how much your budget will need  to be for materials. You can also use the spreadsheet to help you figure out how much to budget for labor, if you are contracting it out.

After the walk through, excuse yourself to walk  out to your car. While you are there, look at your notes or talk to your contractor. Take your time and go back when you are ready.

Accurate predicting repair costs can be very scary for first time real estate investors, but it doesn’t have to be. Homevestors has lots of tools and resources to help you get started. Visit our website at Homevestorsfranchises.com.

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