3 Ways to Estimate Rehab Costs (Even on Your FIRST Deal)

Anson has had to estimate rehab costs a lot in his career, so he has a pretty good handle on what does (and doesn’t) work. But, when you’re starting as a new real estate investor, you may not know what goes into estimating rehab costs, creating a scope of work, or even who to ask to answer questions.

Thankfully, you have 3 different methods to choose from that will help you estimate your rehab costs. You could do this by using one, or a few, trusted general contractors to walk the house with you, using a square footage estimate, or trying the breakdown method. The most important thing is for you to have as much data as possible on your property, so you know exactly how much it will cost to rehab and how much you can sell (or appraise) it for!

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00:00 Intro
01:38 The Thing About Estimating...
02:47 More Data = Accurate Estimations
04:20 Part 1: Get Expert Help
08:26 Part 2: The Square Footage Estimate
10:51 Part 3: The Breakdown Method
13:06 Pro Tip: Do a Contractor Walkthrough
14:16 Action Steps

[StrongTowerLockandKey]

The Pro Desk at Home Depot and Lowes will also give you pricing/sqft for different work on a list of all kinds of work. From demo to flooring, paint, decking, drywall, etc....

[talus]

One Lowe’s/Home Depot hack is to go at store opening on Monday. Any contractor you meet there at that time are motivated

[AvgPoolPlayer]

The pro tip about a contractor answering questions was amazing.

[GraphixnEffexJ]

These are the videos that keep me subscribed. REAL concrete how to's.

[namv.]

Thanks for the information. I'm currently learning how to get started in wholesaling and this video is very helpful with regards to how to do an estimate. Now my question is, when talk about the square footage method estimate and you give the cost amount for light, medium, and heavy rehab, are the cost in USD or CAD? I currently live in Canada.

Again this Information is very helpful. And I will for sure be watching your other videos.

[TIGMAN]

Great video. I would even say for when you talk about the masterclass. By showing initiative a lot of experianced professionals in the field would mentor for free because they know how it is.

[KatieK]

Would buying a home at an auction fall under a buyers agreement? Thank you!

[CopeBUILT]

Even easier... Pay your contractor a proposal fee to pay for their time to write up and quote your scope of work

[nekonationjapan]

so in Japan were i want to invest they really don't like old. so they like to scrap and build new at 30 years. I am looking to BRRRR but do you think it will work as well?

[DunGoneExploring]

ouch! and THIS is why more of us have started to charge for our bids. us contractors aren't rich, we survive off honest and long relationships. if we're just being shopped to the extreme and then picked apart with line items then its pretty obvious you don't care about us and our families that live off that money. asking us to line item everything isn't just unfair (who cares what each item is if the TOTAL bid is good), and, it takes away any security cushions we have in the bid. our company honors our bids. if plumbing cost $2, 000 extra then I hope I overbid my paint to compensate and that's how I feed my kids each month. if you beat me up about my paint number then you took that cushion from me Im now working the weekend to try to make up for it. I appreciate the video and have read your book. but we've got to start looking at the contractor/investor relationship like a family partnership. if we all net profits then we all grow together.

this is also where pre-meeting screenings are great, over the phone. to get it all out in the open what everyone is looking for. this is where the contractors would feel thankful for being notified about the large group being called in the quote, and you guys can determine if you have a good chemistry together.

I also STRONGLY believe in the concept of YOU having your own pricing. Once you reach a particular size like yourself, us contractors are happy to come in and just have you tell us what your pay rates are for each project. If you want to save money, THIS is the best way to keep your contractors really happy. Why? Because we just get a phonecall from you saying this is what you need done, and this is what the payout is. We don't even have to write anything up. I get to stay working, see my kids tonight, and know that I've got another job on the books and THAT is worth the discount you'll be asking for. I'll come back time and time again. And if I don't like your price on a particular item then I can negotiate that with you or not take the job. But I honestly believe that the biggest savings will come from keeping us off the computers and letting us see our families.

[chulchue]

When he refers to per s.f is he referring to the entire square footage of the house or is he referring to only the square footage where the actual repairs are to take place?

[NickDePanfilis]

The part I'm still missing is figuring out the idea of how much it'll cost before the purchase .. Are you bringing multiple contractors to the property before purchasing? I dont understand how that works

[ASMRaphael]

I learned so much! :) thanks a lot my friend! :)

[ElectricalEngineerGenius]

Wont bringing 2 -3 contractors be awkward to do?

[zBentleyCoupe]

Here in the Bay Area we start @ $50 per sqft and can go up to $200 per sqft

[HeduAI]

Such an awesome video! Loved it. Do the estimates for a book written last year still apply?

[BrinAmberlee]

The epic music in the background got me hype af though 😈🤣

[LASFVEGASHOUSTON]

Pay that contractor a fee for his time. Most contractors if they are any good will be slammed. Having three contractors show up to bid on same job will not work. How many times can you do that before those trades realize you are just getting estimates thus they won’t return your calls or text.

[ProfessionalGasLighting]

Shoutout Colorado! I’m looking to buy a rental property with my va loan!

[Krazy-Klipz-Gang]

Dude why would my ip be blocked I wanna buy your book !!!! 💔