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