The fastest way to get multiple estimates For R.E.I’s
Renovation Specialist Expert Companies & Investors
Need reliable and fast renovation task estimates? Renovation companies with crews of experts specializing in certain, often needed, repairs are perfect for real estate investors.
New to an area, or perhaps, needing to renovate properties, but you need a new reliable crew? Is your General Contractor (GC) too busy to give you estimates on every house on your long list? Renovation specialty companies have trained staff ready to measure, calculate and give you a multi-tiered bid without any chasing or coaxing. They will take the time to not only get the materials right but show you a variety of product options to match the economic level of any neighborhood.
How Repair Costs Effect Your LTV
The cost of repairs required to achieve your desired After Repair Value (ARV) are important if you are borrowing to pay for a deal. Your potential profit equals the ARV minus repairs, closing costs, holding costs, back taxes and liens, purchase offer and loan costs. Repairs are one of your highest costs in the deal. They’ll be either the second or first greatest amount to spend. So they are a major factor in qualifying for funding your deals. Most lenders pass on deals where the value of the finished property is too close to the loan amount. Your Loan-To-Value (LTV) shouldn’t be over 75% to make the lender feel secure in the deal. If accepted, you may have to put more money down up front or have a percentage of the repair cost extra held by the lender to cover cost overruns.
Achieve your ARV and Boost Profits
If you invest full time the you are someone who needs correct repair cost estimations to calculate ARV. Getting your After Repaired Value wrong can be the most costly of all the potential real estate investing disasters. When considering a specialist over a GC ask yourself this question first. When all they do is windows, do you think they have the pricing, installation and time to completion figured out yet? Absolutely! Your handyman is just guessing and your GC is marking it way up. You must be sure of your number because repair cost overruns are the number one reason real estate deals fail. The other repair pitfall to avoid is the runaway or scam contractor. Use only established companies that specialize in their skills and you will be safe from both threats to your bottom line.
Is it hard to manage?
Some investors think it is hard work to organize a crew for a home renovation rehab. There are specialist contractor companies that are experts at each of the tasks you need done to fix your flip. The players you need to manage on the field are, in order of appearance, Roofing, Door & Window replacement, Clean Up, Siding, Gutters, Insulation, Plumbing, Electrical, Drywall, Cabinetry, Painting, Flooring.
Your Roofers, Siding and Window installers will only be seen once for 3-7 days. the rest you may have to bring back at different phases of the rehab project. Some can work simultaneously without being in each other’s way. Some can’t start without completion of other work.
You can get a consultation on how to proceed with your Scope of Work at Red Bud EX101 LLC, your suburban renewal experts.