A Masterclass in Estimating Rehab Costs When Flipping Houses (Part 1)

The biggest hurdle to flipping houses? Estimating rehab costs (accurately!) On today’s episode, real estate Mogul, James Dainard shares his cost-effective process for estimating rehab costs. James has earned his title by being involved in 3,000 transactions over the past fifteen years and creating a multi-level real estate brokerage. He has mastered the art of estimating rehab costs which has allowed him to invest on a seriously large scale. Currently, he is working on thirty flips and has 400 apartment doors under construction, so not only has he had past successes, but he is consistently learning and adjusting to the rapid changes of the market. James is an investor to not only learn from but to emulate, and today he gives a step-by-step guide to do just that.

James breaks down renovation steps like building a team, getting a budget sheet together, and vetting workers, contractors, and properties in vast detail. The underlying theme behind each of his steps is meticulous preparation. As an investor, one of the best things you can do for yourself is to prepare and get rid of any variation in your processes. By perfecting his preparation processes, James has been able to minimize variation and save himself in the long run. Do yourself a favor and listen to these next couple of podcasts intently— it could save you serious time, headache, and money in the future!

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Join the Real Estate Rookie Facebook Group:
https://www.facebook.com/groups/realestaterookie
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Listen to James’ Full Interview on The BiggerPockets Podcast:
https://www.biggerpockets.com/blog/biggerpockets-podcast-338-james-dainard?utm_source=youtube&utm_medium=description&utm_campaign=none
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Estimate Rehab Costs Quickly With This Simple 6-Step Process:
https://www.biggerpockets.com/blog/how-to-estimate-rehab-costs?utm_source=youtube&utm_medium=description&utm_campaign=none
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How to Flip a House and Make a Profit:
https://www.biggerpockets.com/guides/how-to-flip-houses?utm_source=youtube&utm_medium=description&utm_campaign=none
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How to Determine a Property’s Value Using Real Estate Comps:
https://www.biggerpockets.com/blog/real-estate-comps?utm_source=youtube&utm_medium=description&utm_campaign=none
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Follow James on Instagram:
@jdainflips or https://www.instagram.com/jdainflips/
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Check out James on Youtube:
@projectre or https://www.youtube.com/c/ProjectRE
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Connect with James on BiggerPockets:
https://www.biggerpockets.com/users/heaton?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Tony and Ashley on BiggerPockets:
Ashley: https://www.biggerpockets.com/users/echopm?utm_source=youtube&utm_medium=description&utm_campaign=none
Tony: https://www.biggerpockets.com/users/tonyr75?utm_source=youtube&utm_medium=description&utm_campaign=none

Episode 165

Show notes at: https://www.biggerpockets.com/blog/rookie-165?utm_source=youtube&utm_medium=description&utm_campaign=none

00:00 Intro
05:52 Building a Multi-level Real Estate Brokerage
08:25 The First Step: Building the Right Team
17:39 Vetting Contractors
27:01 Using the "Plug and Play" Method
32:04 Estimating Rehab Costs
42:50 Vetting a Property Before a Physical Visit
48:59 Getting in the Property & Coming Prepared


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