Re: for all you rehabbers - Posted by Todd (OH)
Posted by Todd (OH) on February 03, 2002 at 08:58:32:
These suggestions presume you know nothing about rehab costs, and that you do not currently have a fixer-upper property…
Find a property you want to make an offer on AND HAVE ACCESS TO. In fact, it could be a property (preferably vacant) that you put under contract either through a realtor or FSBO. In your contract you should have an inspection clause that allows you to get repair estimates and back out if the repair costs are too high. Heck, it might even be a HUD house that you are contemplating putting a bid on…
Take some time and write out a “Scope of Work”, i.e. repairs that you want done to the property. Be as specific as possible.
Get two or three contractors to come by and give you FREE estimates (maybe even 1-hour apart or 2-hours apart on the same day). Ask a lot of questions, take notes frantically, especially when they mention a cost figure.
To get them to come out, if necessary, explain that you are going to be buying a lot of property and you are looking for someone to give all of your work to. If that doesn’t work, worst case scenario, pay 3 contractors $50-$100 bucks each since you will only have to do this ONCE before you become knowlegeable enough to get them to do it for FREE in the future.
- Try to get them to break down their estimate to YOUR benefit, not just to theirs (i.e. Win/Win). I.e. How much is Labor vs. Material? How much is for the BATHROOM, how much is for the KITCHEN, how much for the PLUMBING, ELECTRICAL, DRYWALL, etc. Most contractors are lazy with paperwork and don’t want to break this down for you, but in reality that is exactly how they figure their own costs.