Real Estate Investing School: By Nicholas Hurd
Is it a hard task for you to estimate properly on your construction projects? Are you juggling money between projects because you just don't have enough? Do you use present job payments on previous job expenses? If this is true of you, you're not making estimates correctly because you are estimating improperly and not covering costs, as well as ensuring a profit.
Do You Guesstimate or Do You Estimate?
In order to estimate properly for your construction jobs, you have to take some time and effort to go into detail. You can't just look at what has to be done and guess what costs and time are required to do the job properly. If you guesstimate, it's very likely that you'll get in trouble because not only will you only be doing a very rough estimate, but it's likely that you'll overlook some areas you should include in your estimate. Actually sit down and work out construction estimates so that you take everything into account and make a profit instead of actually going into the red. If you want every project to be a success and earn you money, you have to make sure your construction estimate is accurate and fair. In order to plan the project properly, you have to estimate the cost of materials and hours accurately so that you cover these expenses thoroughly but fairly and are left with a profit after the project is complete. As an example, if you have a wall that you need to frame and drywall, you can't just look at it and throw out a guesstimate. You might actually underestimate not just what you have to do, but the materials and man-hours involved, and come out with a loss.
When you make a construction estimate, to do so accurately, you have to consider the time it will take, the material you'll need, and other costs involved such as labor, equipment and so on. If you guesstimate, you can actually overestimate and lose the contract to someone else who can undercut your costs, or you can underestimate the total cost and actually come out in the red on the job.
Compare your construction estimates thoroughly and carefully, based upon scientific techniques and methods. The results should be qualitative. If your estimate is correct, you'll come out with a good profit and will be able to complete work on time as per the schedule you come up with. To draw up the right estimates, you need to understand what each job requires and then plan properly. A correct construction estimate is necessary for you as a contractor so that you understand just the type of work the job requires. This is also of benefit to the customer, because he or she will have a clearer idea of the work involved and the cost he or she will be required to pay, as well as the time it will take to complete the project.
Nick Hurd is the developer of LiteningFast Estimating. LiteningFast is an estimating program that helps you estimate faster, easier and more accurately. It's integrated with QuickBooks to provide job cost.
It was introduced to the market in 1994 and currently has over 3,500 users in the US, Canada, and around the world.
You can find more information at construction estimating for contractors. You'll be glad you did.
Previous posts from this category:
Sunday, February 3, 2008
Estimate Construction Projects Properly and Profit Every Time
Thursday, January 31, 2008
Why Would An Investor Or Home Buyer Work With A Realtor To Find A Home Or Investment Property?
Real Estate Investing School: By Qayam Khan
One of the single best assets you can have when working with property is a good relationship with a seasoned, established real estate agent or broker in the area you are buying in. Many investors and home owners feel some sort of resentment against real estate agents in general, when in reality, if they would follow some simple rules, they would find that a good agent will make them considerably more than they could make on their own.
A few points about Realtors:
1. They work with real estate values and markets every day, the average investor or home owner works with real estate in their spare time.
2. They only get paid if they successfully perform a service for the investor or home owner.
3. If you find a full time agent that has been selling real estate for more than 3 years, he or she probably knows more about marketing your property than you ever will, unless you take up investing full time. Again, look for a quality agent, one who is full time in real estate sales, not part time.
4. In the market today, some investors and home owners are now finding buyer brokers who totally represent the buyer interest and in some state they can give part of their commission back to the buyer as long as buyer's mortgage company is ok with that and there is disclosure on the HUD and closing statements.
If you don't know the value of a particular piece of real estate, you can use an agent or buyer broker to locate comparable properties. An agent can also give you pointers on what makes property sell, such as what are the latest color schemes, and how to "stage" a house for sale.
Where do home buyers and investors find Investor Realtor or Investor Real Estate Agent?
How does investor find a Real estate agent that understands how investor thinks and kind of property that works for investor buys? The best places are real estate investor clubs. So how find investors association or groups in your area? It's easy do a Google search on any of following: Real Estate Investing Clubs, Real Estate Investment Association, REIAs, Real Estate Investing Classes, Real Estate Investing Groups, Landlord Club, and Real Estate Investing Network.
A Real Estate Investors Association (REIA) mission is to provide an entrepreneurial atmosphere for real estate investors to learn, teach, and network to new and experienced investors. REIAs and the Real Estate Investors Clubs have been formed for real estate entrepreneurs and professionals with one of their goals to bring like minded individuals together, to achieve greater real estate goals. Real Estate Club members come from many walks of life: first time buyers, new investors, licensed agents and mortgage brokers, commercial investors, attorneys, CPAs, and first time landlords.
Real Estate Investment Clubs and Associations meet regularly in most major cities. They hold there meetings usually on monthly basis in the evening. First time visitors can usually come free to a first meeting or pay each meeting thereafter or get yearly membership. Membership is encouraged as these organizations are primarily funded through membership. What great place to find real estate agent who is in like minded group.
Ralph Marcus Maupin, Jr. (Mark) works with bulk buyers and seniors in Michigan homeownership. He is an instructor of real estate investing at local college. You read more about him on his web site http://www.MrLeaseOption.com
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