142 - Costs Will Make Or Break Your Deal

Most people don’t have a clue how important it is to inspect a property they are interested in buying before they buy it. If you wait until after you purchase a property to actually take a look at it you run the risk of discovering something that could completely wipe out your profits and end up losing you money on the deal. Something we definitely want to avoid. If you want to be a successful investor with the ability to make large profits you must know what the repair costs of every property you look at will be. It doesn’t matter what you plan to do with the property, the repair costs will always factor in, whether you think you’re going to wholesale it, sell it retail, or rent it out. This is why I bring a walkthrough inspection sheet to every property that I look at. You can get your copy by checking out my course Tricks of the Trade. Anything that needs to be addressed gets checked off on the inspection sheet and then I use that sheet to work with the contractors that will be doing the repairs. This keeps everyone accountable and on the same page for what needs to be done. When doing the inspections, you need to give careful attention to the outside of the property as well as the inside. I take two walks around the exterior before I take a look at the interior of the property and I’m always asking myself a series of questions about what needs to be fixed.  You have to answer these questions for every property you look at because they all impact your ability to ultimately make a profit. And by documenting everything that needs to be addressed, you are also protecting yourself from being taken advantage of by unscrupulous contractors.