Estimating Rehab Costs: Red Flags & House Flipping Tips (Part 2)

The biggest hurdle for house flipping? Estimating rehab costs (accurately!). Welcome to part two of a rehab estimation masterclass with real estate mogul James Dainard! As mentioned in part one, James has created a multi-level brokerage where he has been involved in 3,000 transactions. His excess experience has allowed him to create an almost scientific process for his flips. In today’s podcast, James builds off part one and gives you a step-by-step guide on how to emulate the process that has given him his success.
James goes over what and who to bring when visiting a property, closing on a property, writing a contractor contract, and finalizing a project to perfection. Each process includes tedious details that may seem daunting at first, but as the saying goes, the devil is in the details. While the initial steps may seem meticulous, once you begin making the process repeatable and do it continuously, it's second nature. James perfected his flipping and renovation processes through trial and error, and if you listen closely you can avoid commonly made mistakes and have an advantage over most new investors. To be the best you have to learn from the best-so listen closely!
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Join the Real Estate Rookie Facebook Group:
/ realestaterookie
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Watch the Biggest Red Flags When Buying a House (Flips & Rentals) w/James:
• Biggest Red Flags When...
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10 Things to Look for in a Final Walk-Through:
www.biggerpockets.com/blog/10...
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How to Flip a House and Make a Profit:
www.biggerpockets.com/guides/...
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Follow James on Instagram:
@jdainflips or / jdainflips
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Check out James on KZbin:
@projectre or / projectre
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Connect with James on BiggerPockets:
www.biggerpockets.com/users/h...
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Connect with Tony and Ashley on BiggerPockets:
Ashley: www.biggerpockets.com/users/e...
Tony: www.biggerpockets.com/users/t...
Episode 166
Show notes at: www.biggerpockets.com/blog/ro...
00:00 Intro
02:15 What & Who to Bring to a Walk-Through
18:53 Team Member Red Flags
19:43 Next Steps After Purchasing the Property
25:25 The Benefits of Getting a Licensed Contractor
28:08 How to Write a Contractor Contract
31:49 How to Finalize a Flip (Perfectly!)
36:19 How to Gain Experience
41:36 Connect with James!

[@casey.connors]

Do yourselves a favor - create your own private playlist and make sure these videos are saved in it for quick reference! Like many of the BP related videos - this is absolute GOLD! Thank you James, Tony & Ashley!

[@LiahP-lh6ui]

Lol, I literally did that.

[@evefavorse5939]

Priceless information!

[@sounddepth]

I love this guy James… crazy informative, and extra humble with it. I watch his videos on BP too. When I decide to switch to west coast markets, imma try n link! 💪🏾

[@ProjectRE]

Thank you!!!

[@dhowto3005]

Thank you James! I learned a lot in the two part series!

[@ProjectRE]

Thank you! We will be putting more content out on the KZbin channel! Stay tuned!

[@afterjunkllc1320]

Great info, very helpful.

[@nrsternes]

Excellent advice!

[@michaeld3901]

Finally had time to watch part two. Really enjoyed it. Closing on a 2017 sf this month. I want to make it stand out. Would you have a reference on video's or articles on home up grades to get the most out of a flip?

[@ProjectRE]

Congrats! We will knock out a video on that topic.

[@Healyourselves]

@james do you have a shareable walk through sheet.....do not want to miss anything when we go to inspect

[@taurusfields1408]

Do you have templates for the contracts and the clauses that you mentioned In them?

[@SpiderLace028]

Wowie! This is a good one! lol

[@ProjectRE]

Thanks Jamie!

[@greccolcc]

whats the app you use for the final walkthrough punch list? i search it and it show a ton of them, if someone can help i would be really grateful

[@AberrantArt]

James, do you also get ADDITIONALLY INSURED STATUS on the contractors policy? To make sure they are covering you for = ONGOING OPERATIONS and COMPLETED OPERATIONS (CG2010 form - for ongoing operations) and (CG2037 form - for completed operations) ???

[@logantatman5938]

This might be a stupid question, but at 20:45 when James is saying to have a finalized budget so your contractor doesn't go out with an unprepared budget, does he mean that you should have given your contractor your budget so they know what your anticipated costs are and don't charge different? Or does he mean have a budget that you then compare to the contractors estimate they return? Thanks so much in advance!

[@richardjudge2322]

Good Stuff

[@ProjectRE]

Thanks Richard!

[@bcmedia1948]

How can I get his excel sheet and contract?

[@christianstill.6654]

Can we get a copy of these sheets and documents???

[@DevineFletcherPCF]

Is there a link or pdf to the rehab budget sheet he refers to in the beginning?

[@ProjectRE]

Not yet… but we are working on a program for that.

[@mistymiss]

@@ProjectRE I'm interested in the sheet as well.

[@mistymiss]

How can we get access to the contract and walkthrough list? Is this something that is available to share with us? Maybe a paid program?

[@RealEstateRookie]

This might be helpful! www.biggerpockets.com/files/user/drobertson/file/house-flipping-punch-list?

[@youngyouth858]

This guy is pretty surgical - ❤it

[@christiansolisrealestate]

Who are they referring to as broker ?

[@petedahlem483]

If you’re referring to 5:40, that would be a realtor. But there are many kinds of brokers: insurance brokers, mortgage brokers, real estate brokers, etc.

[@brianburke808]

"I don't fear the man that has practiced 10,000 kicks. I fear the man that has practiced 1 kick 10,000 times."

[@ProjectRE]

🥷

[@nathanielcradle-yourrichfriend]

Great info. Now let’s share that list.

[@ProjectRE]

Thank you!

[@holdyuh1464]

not many GC is willing to walk a property for free

[@ProjectRE]

If they know you’re for real they will! That’s why I like to review pricing prior.

[@proawelsh]

@@ProjectRE so you are taking a contractor with you, that you have already spoken to in your vetting ?

[@zenco1611]

Sorry some of this is plainly incorrect despite some nuggets for investors. A genuine craftsman would NEVER work under such a hypocritical dynamic. 200 dollars for a professional walk through is more than fair and no I have never nickel and dimed a client ever, I don’t haggle and work each project in reverse based on actual budget and specific objectives. 24 year designer, builder, flipper.

[@zenco1611]

And if after 3000 rehabs you can’t or won’t pay 200 dollars for an impeccable professional, something smells very rotten