Newbie
I working on locating my first rehab deal. I've read several books and some say to do the comps and repair estimates. However, others say that you can skp the repair estimates.
Is it necessary to have a contractor or home inspector look at the property before I make an offer?
Yaisa
Why would one make an offer on real estate without knowing what they are buying?
Unless you know what to look for then I suggest you get up with a contractor or inspector about estimates PRIOR to putting your name to a contract,.....you will save money in the long run.
Thanks for the advice.
I was thinking that I would make the offer subject to an inspection. That way, I could make multiple offers and only have to take a contractor in once the offers are accepted.
good idea. thats what i would do. It only makes sense. BTW, some people say those are weasel clauses, but i like to call it "looking out for yourself".
you need to know that rehab expense so that you can figure your profit always multiply it x3 to cover your self you want the property to pay for it.
Hi Yhagood,
When you do have a contract come in to give you estimates, keep a list of the repairs, learn them and know them!
Once you understand the general cost of items needed repaired, it will allow you to make more effective offers. You can still have your escape clauses in their, but you will be more familar with the cost at hand!
Best of Success!
BAMZ
You need to get 3 contractors to meet you at the property so they can all give you a bid at one time then you can see if you are going to win or lose on the deal.
Hey,
If you have properties lined up, I should be able to help you close on the deals. PM me if interested
Eric
[addsig]
This is an extreme case that actually was posted on TCI. There was a property listed with a wholesaler at $7500. We were told that it just needed some paint for about $300. A contractor estimated that it would take $30,000 just to make it livable! We walked away from this and scratched the wholesaler.
On one I have in escrow, I hired a property inspector. This may be additional leverage since this is an REO and I may have an opportunity to renegotiate if additional problems are found by the inspector.
Regards,
Ed
I make offers all the time, subject to inspection. Regarding the inspection, if you are a new REI then hiring a professional inspector/contractor is good advice. Learn everything you can from their inspection/bid. On top of that, spend some time walking the isles at your local home improvement store - getting familiar with prices for materials. And most of all keep asking questions to anyone and everyone in the rehab business. Good luck!