Since the owner started working with us a mere week before her auction date it was important for us to get some estimates on the repairs needed in order to make an offer to the bank, thus spent all of yesterday, Monday, scheduling 4 contractors for today. Since Oak Forest is quite a drive for me and my partner we scheduled them an hour apart, not knowing how long each would take. Our first guy cancelled a few hours prior and I unsuccessfully attempted to fill his time with another contractor. In the end this turned out to be a good thing because just three estimates took all afternoon. We had guessed an hour for each hoping it would be shorter, however the house needed so much work that each took about an hour and fifteen. RS ended up finishing with one guy while I got started with another.
Although it took a while, we learned what kinds of questions to ask and I learned not to wear high heels to tromp around a property for four hours. We also learned to see the house in a new way; we didn’t realize how much needed to be done until we started going through it meticulously. While we spent a lot of time getting bids today we may still need to get more but we recognize that we are building our team and, once we have someone who has proven himself trustworthy, we will be able to call him instead of all the “interviewing”.
Anyway, after an exhausting afternoon, we had a much more accurate picture of all the house needed and estimated our rehab costs at $70-80k. If we can negotiate the bank down to $20-$30k we’ll be in it for around $100k, sell it for $150k within a week (after the rehab that is!) and make about $30-40k profit after paying points to our financier, closing costs, title fees etc.
Keep your fingers crossed!
Curious about how I learned all this? visit www.newrichbdg.com
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