What is the Repair Cost Budgeter? Tutorial
Learn about the Repair Cost Budgeter, what it is, when and why you will use it.
- 00:25 - What is the Repair Cost Budgeter?
- 00:40 - What's the difference between the Repair Cost Budgeter and the Repair Cost Estimator?
- 01:35 - Why do we need both the Repair Cost Budgeter and the Repair Cost Estimator?
- 02:20 - Using the Repair Budget vs Estimate Report to analyze variances between your original estimate & your actual budget
So what is the Repair Cost Budgeter?
The Repair Cost Budgeter is a Project Management & Accounting tool that is used to create a construction budget that will be used for managing rehab costs during construction.
So what’s the difference between the Repair Cost Budgeter and the Repair Cost Estimator?
When you are first analyzing a deal you will use the Repair Cost Estimator to estimate your repair costs for a project and ultimately determine the maximum purchase price you should offer for the property.
Once you actually get a property under contract, you can use the Repair Cost Budgeter to create a separate construction budget for managing costs during construction.
And that is the real key difference between the Repair Estimator & the Budgeter.
The Repair Cost Estimator is a deal analysis tool used before you get a property under contract, and the Repair Cost Budgeter is a Project Management & Accounting tool used to manage your rehab budget during construction.
So why do we need both the Repair Cost Budgeter and the Repair Cost Estimator?
The reason we have both the Repair Cost Estimator and the Repair Cost Budgeter, is because what you originally plan and originally estimate is never exactly what is built.
By having both an Estimator and a Budgeter, you can track the variances between your original estimate and your consruction budget, which will give you some insight on which items were under estimated or overestimated which will ultimately make you a better estimator for future projects.
What you initially estimated may be quite a bit different then what you actually end up building, and its important to be able to track your initial estimated costs, and compare those against your actual construction budget.