| Okay, so you have swapped trying to see how much | | | | can rank each repair in order of best benefit, and |
| equity you can buy for trusting your own judgement to | | | | always have a way of controlling the less essential |
| determine the repair cost of a one of those bank | | | | costs. Make sure you know all the great sites for |
| foreclosures deals going in the neighborhood. Let's test | | | | estimating repairs, and get an average estimated cost |
| your strategy. | | | | rather than just one from your favorite supplier. |
| You have setup a subscription to a listings service you | | | | An unanticipated blow-out in your hold time can cost |
| like the look of and you are keen to get on with | | | | you heaps. The experienced and large company |
| selecting a small number of recently repossessed | | | | rehabbers plan to flick on in 6 weeks or less, and they |
| properties. You are sharpening up your negotiation skills | | | | have worker crews on stand by. Have your |
| ready to hit the bank with your offer. You have | | | | resources ready by coordinating timing with your bid |
| already checked out access to a great site that will | | | | process. If this is difficult to manage, be realistic in |
| give you comparable sales values. Now to determine | | | | costing your likely hold time into your budget. Don't |
| your formula to set an offer price. Wait a minute, what | | | | overlook the true cost of your time, if you are not free |
| about minimising the risk of blowing your budget with | | | | to devote yourself to the project when required. |
| repair costs. | | | | You have a pre determined profit percentage. That's |
| Here's the first tip (actually it's a number of tips but | | | | not a question. Don't be tempted to skimp on this part |
| never mind); set up a simple spreadsheet template that | | | | of your budget when things go wrong, that's your |
| you can use for every property in your final selection. | | | | cushion and compensation for risk. Whatever happens |
| Separate out your cost estimates into two buckets, | | | | try to lower your less essential expenditure and |
| essential and appeal enhancing. You need a column | | | | reduce your hold time even if it means lowering your |
| for estimated cost and another for the expected | | | | price a little. And good luck! |
| benefit to your resale price for each repair. Then you | | | | |