70% ARV

[Tom Sutherland]

I have been hitting the books hard. Searching for properties in my area including just going to a sheriff sale this week.

all the properties i am finding do not meet the 70%ARV criteria.

Where is everyone finding properties selling for these prices?

The MLS really has nothing unless you count homes built in 1908 in bad neighborhoods and the sheriff sales I went to the plaintiff bids started over the 70% ARV in my opinion.

Tom

[Tamara Elliott-Deering]

I agree with you the 70% number is hard to hit. I recommend using a calculator to determine your maximum offer price, sometimes it's 70% sometimes it's not. Most of these 70% deals are found off market by bandit signs, your marketing website, driving for dollars and direct mail but realize that you may only have a conversion rate of 2 - 3% so that's a lot of contacts.

Next you need to make a lot of offers and suffer a lot of rejection. I will usually only offer substantially below the asking price if a home has been on the market for a long time or if it's in really bad shape.

One final strategy, you need to be looking for ways to add value to a property. I don't know your market but typical ways to add value are to convert a single family to multifamily or vice versa, create a master suite or add square footage.

Keep plugging away, real estate is a numbers game. The more no's you get the closer you are to a yes.