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Have you ever asked yourself the question, “what is this remodeling job going to cost?” When you buy an investment property, especially if you are going to flip it, the repair / remodel number is one of the big three numbers you HAVE to know in order to be sure you’re going to make money on the project. The other two are the ARV and the cost of the money. Where does the purchase price fit in? Because it seems like that’s where you start. It IS the first number that gets activated in the process, but it’s the last number to be calculated. You back into a purchase or offer price based on the other three numbers. This is true in any kind of property investment. You must have your exit strategy and a strong understanding of what you will get for the property, you must know your rehab or “value add” number. And you should be mindful of you cost of funds.

Today we are going to visit with the guy who can help you nail down that rehab number. His name is Pat Dornan and he is the inventor of the Ultimate Rehab Estimator. Ron was on the program about a year ago when both his software and this show were new. In that time his product has grown, the feature set has expanded remarkably, and he is, in my opinion, on his way to market dominance. There are other construction estimating programs out there designed for the insurance industry and disaster cleanup crews, but they use bloated and many time unrealistic pricing, which frankly seems like more of a WAG to me. If you want to know what a WAG is, you can look it up or contact us, but this is a kid friendly show, so I’m not telling you on the air. The URE takes you through a property board by board, cabinets, countertops, outlets, everything you would typically do in a property. The program is linked to the Home Depot catalog for most every item you would ever need. Then Pat and his team add in the labor rates from every state in the US and sales tax information in every location so they can calculate to within a couple of dollars the exact cost of your rehab. It’s an amazingly thorough product and no investor should be without it. Pat will be here in just a few moments.