Collecting Keys - Real Estate Investing Podcast EP 32 - Analysis Paralysis? Here’s how to REALLY estimate Renovation Costs
What did you think of todays show??
Estimating renovation costs on a property isn’t as hard as many people make it out to be. But if you don’t go about it the right way, that’s when you can find yourself in trouble.
In this episode of Collecting Keys Podcast, Mike opens talking about a recent trip to Miami for a GoBundance mastermind. In the educational section, we share our tips and tricks on how to really make a renovation costs estimate by being conservative and using a simplified process, and how to get the most value out of a renovation.
Here are some power takeaways from today’s conversation:
- Surround yourself with like-minded people
- Be intentional, inquisitive, and truly listen in all of your dealings
- Make conservative estimates when coming up with renovation costs
- Less renovations is more if you want to make money flipping houses
Episode Highlights:
[08:50] Making the Most Out of Mastermind Events
Mike recently attended a GoBundance event that he found very inspiring. But while it’s easy to leave a talk feeling pumped, the action you take after is what’s really important. Be intentional, inquisitive, and truly listen in these types of events to get the most out of them.
Listen to the full episode for more of Mike and Dan’s takeaways!
[17:47] How to Estimate Renovation Costs on a Property
Many people become overwhelmed at the idea of estimating renovation costs, but it can be as simple as conducting a walkthrough and taking photos of what needs renovating as you go along. The key is to make conservative estimates.
Consider Mike and Dan’s Instant Investor Program and check out their calculator tool for easier estimating!
[26:32] Bolstering Your Budget With a Contractor Walkthrough
By conducting another, more detailed walkthrough with your contractor, you can build confidence in your initial estimate or make adjustments as needed. This second walkthrough will also allow you to come up with a materials package.
Your walkthrough with your contractor is when you take note of the quantities and measurements of everything that needs to be replaced. This will help you check whether your new findings line up with your initial estimates and smooth out your entire renovation process.
Notable quotes from the Episode:
[13:50] “Being intentional, that's how you go from zero to 100 way faster than the average person, is really being intentional about those action steps.”
[15:53] “It's beyond just you. And your new reality is like what is possible, as opposed to what you're used to seeing every day in your life and how you move forward.”
[30:50] “It can be a major swing in your profits, honestly, little things add up — that nice, cute backsplash, those new countertops that you didn't have to do, the whole new bathroom, tile shower, and all that sort of stuff can be unnecessary and really effect your bottom line.”
Resources Mentioned:
collectingkeyspodcast.com/calculator