Jesus Gabriel Mendez explains how wholesalers estimate repair costs for properties they haven't seen. He gets contractor quotes for specific items and talks to other investors to build a cost range with a cushion, so the end buyer can still profit if repairs run over.
How do you know what repairs will be on a specific property? That's a good question. Locally, I have some experience. I've worked with multiple investors, I flipped two properties with a partner, and I have some construction experience that helps me locally here in Dallas. But when we're talking about a virtual market, what I personally do is call around a contractor to see how much would you charge for this, this, this, this, this. And also when I'm having conversations with investors, how much does it cost you to do this, this, this to a property? That way I get some insight, and also I kind of have a range where I can give cushion on the numbers so the investor ends up making money if the prices end up going higher or lower than what it actually is. At the end of the day, we're wholesalers. We're not the flipper, we're not the investor, we're not the contractor. So these numbers aren't going to be super accurate, but as long as you give cushion to the numbers and the investor will make money, you should be all right selling properties.
