Dan Brunner wrote:
To avoid paying too much for a property, there are three things you have to get right;
- The After Repair Value (ARV) or Fair Market Value
- The square footage
- The cost of repairs
You can obtain the ARV with a Comparative Market Analysis (CMA or "comps") through a Realtor or a third party such as Investway.
The square footage is relatively easy to obtain with a tape measurer.
Estimating the repairs is source of fear for many investors and I know it was for me. Throughout my experience, I developed an Excel spreadsheet to give me confidence that my estimates were close what it would actually cost. I use the spreadsheet to prepare my offers and then bring in my rehab contractor to validate my estimate during the option period. As I gained experience, the spreadsheet evolved to become more accurate and I continue to update it. If you would like to download a copy, go to http://www.box.net/shared/4vqj1dm9j32p3g3gdhu5. Just fill in the shaded cells and it will calculate your estimate.
I also ran across a program used by an investor in Dallas that calculates repairs based on square footage. It is very simple and fast. You can download it at http://www.box.net/shared/umbguc9pnj0jaj2glt7t.
I hope you find these files to be helpful. If I can help you in your business, please do not hesitate to call.
Dan Brunner
Investor/Realtor
817.296.9676
danb@3dmrinc.com
Thanks Dan. Here's another repair estimating tool that is available for FREE for all to use. www.HammerPoint.com It can be use online or as a IPhone and IPad download. It's based on National Rehabber costs standards but can be edited to your costs and the other thing I like is it can be emailed when you are done with it. Nice tool, especially on your IPad as you are walking thru the house.
Tim Cook
www.Meetup.com/West-DFW-REI-Group
www.AllWholesaleProperties.com
www.WeFindemYouFundem.com
www.GetFreeElectricityToday.com
www.TimCook.BuildLastingSuccess.com
817-599-8058
