That’s not the kind of investor you want to be. You’ll earn a reputation rather quickly if you sell a home with marginal repairs. Here’s the best way to get protect how to protect your investment in rehab properties and reputation as a seller.

Get your offer price right.

Ben Creighton, founder and managing partner GHD Denver, a real estate investment partnership,  and I go into deep dive detail in my Rehabbing and Foreclosure Investment Teleclass with all the steps you need to consider in calculating a great offer, so I recommend you check it out.

But here’s the quick gist of how you do it:

You’ll want to write (in pen) out all of your expected expenses and your retail sales price to determine your offer number. Your profit should always be about 10% or $20,000 to protect you against unforeseen repairs and contingencies at closing time.

Hot Rehab Tip: Leave yourself a margin of 3 to 5% to protect yourself in the case of a collapsed sewer line (older homes), electrical fixes or foundation troubles or worse.

When you calculate your costs right, you are foreseeing your profits on the front-end, not scrambling to recover costs when things go awry once the repairs start.

Here are three more tips for protecting your property investment and reputation:

• Get all of your costs down on paper to determine your best offer. Get repair costs down to the cabinet and square footage on paint and electrical to make it easier to cost during the walk-through.
• Decide on a niche for property investments to streamline your rehab package.
• Be cognizant of a home built before 1950. Check electrical, plumbing and foundation for problems – these are the costliest repairs.

This month on The Investor Insights, we’re looking at alternative financing. In the teleclass I mentioned before, you’re going to learn some of the strategies for financing these rehab deals.

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Jerry is the epitome of a “fix and flip guru.” He’s flipping houses and making a ton of money in today’s market. ($25,000 – $50,000 net profit per deal!). Well, we all know that one of the biggest variables to making offers and getting deals is knowing the cost of repairs. In this 45 minute video Jerry shares his secrets for estimating a rehab in 15 minutes or less. He explains how to do it quickly and accurately (dead on and in 15 minutes or less) and he shares exactly what he pays for each item of the rehab. I’ve never seen such a systematic, easy approach!

Whether you do wholesaling, fix and flip, buy and hold or any investing strategy, you know how crucial it is to figure out repair costs every time you look at a potential deal. Well, using examples of deals he’s done, Jerry walks through exactly how he does it. I had to twist his arm (not really) but he even agreed to give you (for free) his rehab checklists with his pricing included. This alone will save you thousands on your next project.

Paul is a real-life real estate investor in Denver, Colorado and he spends about an hour taking us through his history, strategies, techniques, tips and tricks!

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Dustin is a real-life real estate investor in Columbus, Ohio and he spends about an hour taking us through his history, strategies, techniques, tips and tricks!

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• 50 Cent overimproved a house he bought from Mike Tyson for $4.7MM adding a shoe room, ATV track and entertainment system programmed with 3,000 movies. Was on the market for $18.5MM for two years and still hasn’t sold. Hmmm, wonder why.
• T-Pain fared better buying a manse in Atlanta for $1.35MM and flipping for $3.8MM.
• Jay-Z and Beyonce are into land development up in Scarsdale.

Read the whole article at on Hip-Hop Home Improvement at Forbes.