How to Get Accurate Construction Numbers Before You Buy, A Houston Consultant's Step-by-Step Guide
The number one mistake I see real estate investors make, from first timers to experienced operators, is guessing on construction costs. They eyeball a property, pick a number that makes the deal work, and hope for the best. Sometimes they get lucky. More often they don't. After 20 years as a general contractor, accredited inspector, and construction consultant in Houston I can tell you that accurate construction numbers aren't a guess, they're a process. Here's exactly how to get them right.
I suggest hiring a pro. Pay for the service you want.
Sure, you can learn to guess on general remodeling cost. But construction isn't just remodeling. Without knowing the code you can miss the mark by thousands. Without knowing the signs of trouble you could find out you have a major issue when it's too late and you already own it.
I am of course biased, but would recommend a much different course of action.
The 10-Step Process for Getting Real Construction Numbers
Hire an expert to look over the property and give you a complete evaluation before purchasing. An inspector works well.
Determine which of the items listed by the expert are viable. Not all fails on an inspection are required to be repaired to get full retail or an occupancy.
Create a scope of work and timeline for the items you need done to complete your project to your goal.
Do an internet search of the cost of items you need done.
Create a scope of work for each trade — plumbing, electrical, demo, paint, etc. — with timeline and budget.
Be specific with material selection. Leaving things up to them could get you much less than you thought.
Contact 5 of each trade you require and email them your scope with pictures and plans if possible.
Provide as much detail as possible. Good communication removes problems.
Communicate that if your scope is incomplete for the task you are requesting a quote for you would like to be informed.
Add the sum of everything you have gathered and create a total budget based on a real world scope.
What About Hiring a General Contractor in Houston?
You can skip many of these steps by hiring a GC but unfortunately there are not many real general contractors in Houston. No license requirement equates to a lot of want-to-bes. Those who are good will want to be paid accordingly, as any highly sought after expert would.
The Fastest Way to Get This Done Right
You can also hire a consultant to put all the information together for you and even assist in ensuring you have the proper paperwork and protections against litigation should an issue arise. This is the basis of my entire business, giving clients the information they need to make fact based choices.
I am also an investor. I was a GC for 20 years in Houston, an accredited inspector, and a consultant for billion dollar REITs. I know the value of good information. I pay for it all the time. As an investor I don't GC my own deals. That would make me a GC again and I am not that.
Why Getting Construction Numbers Right Matters More Than Anything Else in Your Deal
Your purchase price is negotiable. Your financing terms are negotiable. Your construction costs are not, at least not once you own the property and the work needs to be done. Getting those numbers wrong before you buy is the single most common reason good deals turn into bad ones.
A $30,000 mistake on a $150,000 rehab doesn't just hurt your profit, it can turn a cash flowing rental into a break even hold or a flip into a loss. I've seen it happen to smart, experienced investors who just didn't have the right information before they committed.
That's exactly what I help investors avoid.
Yes, my way is way more work than guessing. But I've done hundreds of deals in Houston and never lost money on one. Ever. That's not luck. That's process, knowledge, and the discipline to get the numbers right before committing.
If you want that same confidence going into your next deal — let's talk.
📅 Book a free 15-min strategy call: calendly.com/jeph-reit
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