Doing your own COMPS and procedures to assign and do a double close with your end buyer
Your advice is greatly appreciated. Great website. Thanks to all you helpful foks that take the time to share your experiences.
Title: Doing your own Comps! Sorry about the Length. I will improve as I go.
Could possibly have an opportunity. Property needs a lot. I would live to become precise with doing my own comps and have looked. Problem is: Takes a long time and probably slowing me down, so another person will grab the deal.
Have licensed contractor's in place, although untested. If I do not have a meeting of the minds with the seller meaning "Under Contract" with an "Assignment of Contract" contingent upon my estimates matching the seller's or around the same ballpark figures, I could have the deal, if it is that in fact, stolen from me.
I am getting pretty good at seeing how the Town Assessor's value things, such as Garages, Carpools, etc. I am not quite ready to reply on my adjustments to my comps, so I will pay for a CMA to be done. I am going to see if I can get the assignment of contract signed first. Sound right?
Seller is not going to reveal what he bought for, and that is his perogative, so I need to make sure there is enough if a margin for me to assign to another Investor.
Steps, I know are: Start at correct ARV with a CMA, then multiply by 0.70% to hedge against the inevitable, then continue to deduct ALL holding expenses for anticipated length of time for rehab. I have to include Taxes, Vacant house Insurance, electricity, trash if any, sewer/water, if title V is needed add that, and any newspaper advertising, mls fees, broker commissions for avg DOM for the area, and a qualified appraisal of the new value at the end of the rehab.
I would like to close with the seller and have a complete professional report of the profit potential, with all expenses itemized for each month ready for the end buyer. Do an assignment with a double close.
Earnest money will be negotiated with the seller. My thinking is, that these days, clever folks are offering more as a way of making there offers look more appealing.
I want to get this done by Monday.
So again in a nutshell
1. I need to establish an accurate ARV with the CMA or Appraisal.
2. Now I need to sell the seller on how my price is the accurate price for that neighborhood, and use my comps to back me up.
3.Then provide the seller with the negotiated EMD to show, I have skin in the game.
4. I then need to get the Contractor's in there to estimate the repairs. I will then use the repair estimates to negotiate a fair price. I will also try to barter on the rehab total and time.
5. Now hopefully if everything is on track, the same day I close with the seller, I will approach my buyer and give them the report with all the verified holding, broker, expenses, I mentioned above. I will allow my end buyer time to do a walk through. I will barter with him about my fee to assign. We will come to agreement, or I will try my second buyer, or use the Inspection Clause to back out of the deal without losing my EMD.
Yes, I will use a lawyer to review State Regs and ensure that my offer does not break any laws and protects me in case of a hurricane or health problems of the seller or me.
Any other exit strategies that will not be offensive to the seller here, that I could use? I know that most of the contingencies should be removed to be successful.
If I were in the middle as buyer B, would you purchase Title Insurance? I have heard LOTS about this, and some say always and some say No. This would have to be added to my wholesale fee to get my desired income.
How is my knowledge of the procedures? I sincerely apologize for the lengthy message. I just want to give as many details as possible. Thank you all.
I know that COMPS 4 and 5 are over a mile away and they possibly should not be used.
NOTE: There were much higher priced homes close. Should I use them if the beds and baths are similar?
| Property Address | Prop A | Prop B | Prop C | Prop D | Prop E | Prop F |
| Town | SUBJECT PROP | COMP ! | COMP 2 | COMP 3 | COMP 4 | COMP 5 |
| Distance from Subject | 433 Ft | 106 Ft | 220 Ft | 1.7 Miles | 1.7 Miles | |
| Last Sold date | NA | |||||
| Last Sales Price | $465,000.00 | $286,000.00 | $305,900.00 | $420,000.00 | $465,000.00 | |
| Building Value | $109,800.00 | $158,500.00 | $99,300.00 | $120,100.00 | $195,400.00 | |
| Land Value | $204,100.00 | NA | $203,100.00 | $203,400.00 | $233,700.00 | $205,600.00 |
| Xtra Features Value | $6,000.00 | NA | $1,500.00 | $0.00 | $300.00 | $24,100.00 |
| Assessed Value | $319,900.00 | NA | $363,100.00 | $302,700.00 | $351,400.00 | $425,100.00 |
| Zestimate | $347,000.00 | NA | $325,000.00 | $300,365.00 | $385,000.00 | $450,000.00 |
| Price / sq. ft. | NA | $164.00 | $226.00 | $228.00 | $182.00 | |
| Property Type | Single Family/Gambrel | NA | Single Family | Single Family/Ranch | Single Family | Single Family |
| Bedrooms | 3.0 | NA | 3.0 | 3.0 | 4.0 | 4.0 |
| Bathrooms | 2.0 | NA | 1.0 | 1.0 | 1.0 | 2.0 |
| Total Rooms | 6.0 | NA | 6.0 | 6.0 | 8.0 | 9.0 |
| Living Space | 1,826 | NA | 1,738 | 1,668 | 1,835 | 2,552 |
| Lot Size | 0.456 | NA | 0.354 | 0.350 | 1.150 | 0.603 |
| Central Air | No | NA | No | NA | NA | NA |
| Heat Type | Oil Forced HW | NA | Oil Forced HW | Oil Forced Hot Air | Oil Forced HW | NA |
| Roof Type | Asphalt | NA | Asphalt | Asphalt | Asphalt | Asphalt |
| Siding | Vinyl Siding | NA | Vinyl | NA | Vinyl | Wood |
| Built In | 1923 | NA | 1850 | 1953 | 1910 | 1830 |
| Fireplaces | 1 | NA | 0 | 1 | 2 | |
| Garage | 575 | NA | No | NA | No | 0 |
| Pool | 0 | NA | $0 | 0 | 0 | 512 |
| Shed | 90 | NA | 10 x 12 | 0 | 48 | 592 |
| Patio | 0 | NA | 10 x 10 | 0 | 0 | 0 |
| Barn | 0 | NA | $0 | 0 | 0 | 1,100 |
| Carport | 0 | NA | $0 | 0 | 0 | 10 x 22 |
| Shop Loft | 0 | NA | $0 | 0 | 0 | 336 |
