Question for Ron LeGrand students who do rehabs..... - Posted by Charity

Posted by Laure on June 11, 2000 at 21:56:47:

Carpet is 12.00 / sq yard, not sq ft…duh. BTW… I am buying my carpet at Lowe’s… it’s a very nice carpet, and buyers always comment that the LOVE the carpeting !

Laure :wink:

Question for Ron LeGrand students who do rehabs… - Posted by Charity

Posted by Charity on June 11, 2000 at 16:13:30:

Found a good deal that I may put in an offer on tomorrow. However, I had a family member who does a lot of handyman work come out to give me an estimate. Trouble is, the way that I learned to estimate repairs in Ron LeGrand’s course gives me one price and my family member is giving me a much higher price. My concern is if I go by LeGrand’s formula, will I be able to locate someone who will do those repairs for about that price?

If I figure it the way LeGrand does, I am looking at about 7-8K in repairs. My family member quoted 15-20K. BIG difference! What do you suggest?

If LeGrand’s formula doesn’t work, then how do you go about making lots of offers without having to go see every property? And without having to meet contractors everywhere?


Re: Question for Ron LeGrand students who do rehabs… - Posted by Terry (Houston)

Posted by Terry (Houston) on June 11, 2000 at 16:58:56:

Seems that your MOA should be about 84k using round figures for Rons method. How will you buy it? If you purchase it then you would have 2 closings. If you flip it is there enough profit for an investor? Do you have one line up. How is the market? Can you sell it retail quickly to eliminate closing costs. I agree with David, LeGrands formula is pretty much on but at the same time your market will need to dictate any changes. 15-20k in repairs will eat up a lot of your room for error if they truly need that much. Keep us posted and the best of luck.

OK, here are the repairs needed… - Posted by Charity

Posted by Charity on June 11, 2000 at 16:39:31:

I tried to post this before, but it didn’t go through… Here goes again…
House is all brick 70s style ranch on partial basement. About 1700-1800 sq ft needs new flooring. Kitchen linoleum and the rest carpeting.

Bathrooms look good. Whole house needs paint. Outside needs little paint around where garage was finished, bay window and trim. Needs some landscaping.

Deck needs repair. Has no railing and needs pressure washing, staining and some extra support. Has above ground pool that is very large and deep. Pool is empty and I see no holes in the liner.

Furnace and hot water heater look good. A/C compressor outside looks original. Roof looks good. Gutters need cleaning and tacking back up.

Other than that, everything looks good. 3 BR/ 3 BA. Comps for this home are about $129-130K and they are asking $99K (foreclosure). Just went on the market last week and I don’t know if they are very negotiable.

Thanks for any insight…

Re: Question for Ron LeGrand students who do rehabs… - Posted by David Alexander

Posted by David Alexander on June 11, 2000 at 16:25:26:

Not a student of Just Ron Legrand, but why not post the details of the work that needs to be done, sq. footage and maybe we can help you understand.

Right now we dont know if your estimating wrong, of if you family member is trying to make a living off you and this house.

I know that I started estimating my repairs based on hearing Ron’s tapes and have never had a problem, then again I have a handyman guy that treats me like gold, and works very reasonbly.

Or another possibility is that maybe the family is estimating something that he doesnt do, ie maybe they normally do commercial stuff, or for retail end users and you need wholesale.

David Alexander

My repair estimates - Posted by Alex

Posted by Alex on June 11, 2000 at 17:08:25:

Sounds like it needs about $4,000.00 in repair work from what I read here.

Re: Question for Ron LeGrand students who do rehabs… - Posted by WilliamGA

Posted by WilliamGA on June 11, 2000 at 16:35:30:


How did you go about finding your handyman? I am starting to buy a few of these that need repairs and finding a good handyman seems to be the hardest part. I have already been through 3 of them so far. Handymen that is.

Wouldn’t want to send your guy down this way would ya?


Re: My repair estimates - Posted by Laure

Posted by Laure on June 11, 2000 at 21:55:18:

Yup… Carpet installed, 12.00/ sq ft for a nice berber. So, i ALWAYS figure 1500 on smaller homes and 2000 on larger homes for flooring. The railing on the deck could take up to 2 days for a slower carpenter, and probably 400 in materials… so that can be pricey. Painting… you’d think it would be cheap, but I gave up on cheap, and always figure on 1,000, if the trim is going to be painted to with a semi-gloss, white enamel paint, like it should. For walls only, I just paid 400 in labor to paint a 1200 sq ft house, no trim painted. Plus, I usually allow for 10 gallons of paint per house. etc, etc.

If there is not a kitchen to gut, and the bath is ok, AND the roof is fine…NO WAY will you spend 20k !

Laure :slight_smile:

Re: Question for Ron LeGrand students who do rehabs… - Posted by Laure

Posted by Laure on June 11, 2000 at 21:58:52:

Get used to it. I find most of them don’t even make it through one house before they start doing “no shows” . I have one staying now…but it’s only because he wants to learn investing from me.

Laure :slight_smile: