before you ever buy a house to fix up and flip you need to know as accurately as humanly possible how much it's going to cost to fix it up to make sure that the deal fits your numbers but if you come across a deal or you're talking to a motivated seller and you want to quickly get to a number just so you know if you're in the ballpark then you need to watch this video I'm gonna show you how to quickly calculate the cost of repairs on any house in 60 seconds hey it's Jerry Norton and one of the most time-consuming activities for real estate investors is the analysis process of running the numbers to figure out your offer price you can waste a lot of time analyzing deals just to find out you're nowhere near the sellers number have you ever spent hours crunching all the numbers you make your offer to the seller and then you find out you're way off from what the seller wants that's happened to me and can be so frustrating leave a comment and let me know how long you normally spend crunching the numbers to make offers and if you're new here's the purpose of this channel it's to help you make more money and less time flipping houses so that you can live your dream life consider subscribing and click the bell icon to get notified when new videos are released when you're looking at deals and talking to sellers you need to quickly get to a ballpark number so that you can know where you stand before wasting a lot of time when the seller gives you their number in seconds you want to be able to say I need to be in the neighborhood of a hundred and thirty thousand or whatever the number is if you think that might work let's keep talking to be able to do that one of the most important calculations you need in order to crunch the numbers and in order to make that offer is the cost of repairs now this is very subjective because it all depends on the level of rehab that's performed and how much one spends on labor and materials but on this video I'm gonna really simplify it for you and I'm gonna show you a really fast way to calculate the repair so that you can quickly run your formula and get to a ballpark by price but be sure to stay to the end of this video because I'm gonna show you how to get my deal analyzer software that automatically does this for you so instead of it taking 60 seconds you can now do it in like three seconds because come on time is money listen after doing hundreds of fix and flips and having me probably tens of thousands of offers over the past 15 years and I've been a full-time flipper I've created a simple algorithm for calculating repairs to do this you need to know the square footage of the home and ideally have pictures now if you don't have pictures you can still do this by asking additional questions when it comes to rehabbing I break it down into three levels light average and heavy so here's the definition of each light is carpet and paint average is carpet paint and kitchen and bath so now you're doing all the kitchen all the baths and heavy is a gut job it's everything brand-new now let's put some numbers to this disclaimer no way is this foolproof you know labor and material cost vary from market to market and you're a big boy here a big girl and you should always do proper due diligence when buying and selling real estate having said that I flip houses all across the country and I follow this formula with really good success okay so what we're gonna do now is we're gonna factor in light average and heavy based on some different square footage ranges right because obviously the bigger the house the more it's going to cost to fix it up we've got our three levels light which remember is carpet paint average which is carpet paint kitchen bass and heavy which is everything full got everything new under 1,500 square feet then your plug-and-play number for a light rehab carpet paint is ten thousand average you can do carpet paint and kitchen bath twenty five thousand and if you're gonna do heavy right roof windows furnace doors trim kind of everything fifty thousand all right now I'm moving along when we bump up now to the 1500 to 2500 square foot house now we're maybe we're getting two bathrooms a little bit bigger right so now we go from 15,000 which is light carpet paint to 35,000 average carpet paint kitchen bath too heavy gut 75,000 and then moving right along 2500 to 3500 square feet range we're gonna be anywhere from 25,000 for the light to 45,000 for average 90,000 for heavy and then 3,500 square feet to 5,000 you're gonna go 30,000 for light 55,000 for average and a hundred thousand for heavy and then finally our over 5,000 square feet about 40,000 for light 70,000 for average 20,000 for heavy now obviously this isn't perfect right and maybe you want to legal that a little bit maybe you say you know what for 3,500 square feet I'm gonna put down 60 instead of 55 or 50 instead of 55 right I'm not it's not exact it's not a science but it's pretty dang close in fact you know what's funny is I've done this so many times where I've gone through with my rehab estimator item-by-item and I put a dollar number next to everything spend all the time figure it all out and then I pretty much come in with what one of these numbers so what's cool about this is now when you're looking at deals and you say you know what I know my square footage I know whether I want to look at it as a light rehab based on what it needs average or heavy and I got a number now that I can kind of just plug in run my formula get to my buy price in a nanosecond in that awesome so hope you found this helpful again this will vary from market to market and based on you know how much you spend with contractors but this is around where you should be for most investors in most markets based on light average and heavy with the square footage ranges now feel free to use this as a reference but let me show you a way to do this ten times better and faster inside my deal management system called flipster is the deal analyzer now all you do is click add new deal choose the address for the property that you want to analyze put fix and flip what level so here's our levels light average heavy let's put average if you plan on wholesaling the deal put your wholesale fee in there click calculate okay now ran all of the numbers it's got my square footage of the house right here it's got my price per square foot my ARV these are all other numbers here's my rehab number it put 25,000 in for the rehab cost automatically so just did that for me it even factors in my closing cost my carrying costs my profit this would be if you're a fixing flipper at a 20% margin you can adjust this so if your flippers do a 15% margin and then there's your wholesale fee so there's your buy price so instantly all I had to do is choose the drop down add it in there all I do is click update there it is right there so I never lose it I've always got it it stores everything for me right in the system and this is just one of the men many amazing tools inside flipster now what's so awesome about flipster is not only does it streamline organize and automate all the steps to flipping houses but it also finds and funds deals for you so if you want to check out flipster see if it's right for you go to get flipster dot-com get flipster comm or you can just click the link in the description hey if this video resonated with you then like it right now leave a comment share your biggest takeaway you learned or if there was anything unclear and if this video resonated with you and you want to make more money in real estate right now not slowly over years but right now then subscribe to my channel click the bell I kind of get notified when new videos are released now if you do want to go deeper into calculating repairs and spend the time to put a dollar figure next to each item of the rehab then watch this next video where I show you how I calculate the actual repairs on any house in 15 minutes or less click on that video watch it right now and remember my friends if you believe in it then fight for it and I'll see you on the next video