| So you've started looking at properties with an | | | | of what material costs are, and whether they are |
| eye toward flipping them to rehabbers or other | | | | moving up or down. Know the costs for a sheet |
| investors? Now you need to know how you can | | | | of drywall, lumber and plywood, roofing material, |
| estimate the repair costs, and you don't have a | | | | kitchen cupboards, flooring, and plumbing fixtures. |
| background in construction? This article is for you. | | | | Five- Learn average "major systems" costs. What |
| The steps you need to follow are simple. If you | | | | does it cost to replace a major room or system |
| do these things you will become good at | | | | in an average home in your area? For instance, |
| estimating repairs very quickly. | | | | can you update an average size kitchen for |
| One- Look at a lot of property. There is no | | | | $3,000, or would it take $4500? Does an average |
| substitute for this. The more properties you look | | | | size bathroom cost $2,000, or is $2,800 closer? If |
| at, the better you will become at SEEING what | | | | a house needs a whole heating system, will it run |
| you're looking at. The detail that escape you when | | | | $1,800, or $2,500, or $5,000? You should be able |
| you first start looking will soon become second | | | | to virtually memorize things like driveways, roofs, |
| nature to you. Things will pop out at you, and you | | | | kitchens, baths, heating and cooling, plumbing, and |
| will become accustomed to the problems that | | | | electrical. It's not difficult, once you're looking at a |
| houses have and the things that commonly go | | | | lot of houses. Write everything down in your log |
| wrong with them. | | | | book. |
| Two- Get to know a contractor. If you're not in | | | | In short, do your homework. After about three |
| the building trades, you simply aren't going to | | | | to six months of diligent study and comparing, |
| know what things cost, and how difficult they are | | | | you should gain a high level of competence in |
| to repair. Get a contractor on your team (See | | | | estimating repair costs. Soon, people will be |
| Building Your Team). Hire one if you must to walk | | | | coming to you to find out about these things. |
| through several properties with you and tell you | | | | When you walk through a house, you will be able |
| how much various repairs cost. | | | | to confidently size up what it needs and estimate |
| Three- Keep a log book. Write down what your | | | | the repairs in about ten minutes. Formulating your |
| contractor tells you about how much things cost, | | | | offers will become a snap. Once you have the |
| and keep a record of what you learn as you | | | | knowledge, it will be yours forever. |
| estimate costs and make offers. Check back with | | | | If you combine this skill with a thorough |
| rehabbers you wholesale properties to and find | | | | knowledge of market values (see Become The |
| out what the repairs REALLY cost them. | | | | Market Value Expert) you will be a virtually |
| Determine how close you came in your estimates. | | | | unstoppable real estate investing force in your |
| Four- Visit home centers and building supply | | | | local market. |
| stores often. You should have a pretty good idea | | | | Now, go make more offers! |