Flipper · Friendswood, TX · Member since 2017 · 400 posts · 368 votes
7y
Welcome,
You cannot become a master of this market. This market is too big.
Become the master of a niche area, learn about the pricing, active investors in the area, the best realtors (listing agents) go to meetings, drive around and call FSBO's, and once you master that little circle, you will notice that your knowledge has slowly expanded into other circles. You can't force it or even allow it to draw you easy from mastering your original area. The "thrill" of expansion isn't worth the loss of distraction.
Investor · Houston, TX · Member since 2017 · 1k+ posts · 871 votes
7y
Values.
That's it. It's all just valuation.
How much can you sell it for, after you renovated.
Or how much can you rent it for, should you decide to buy and hold, and then how much will it likely appraise for (you will want to refinance it, once rented out).
Getting renovation costs down is the other part to this -- that is cost estimation, but that is also a form of valuation, isn't it? This is the part where I need improvement.
If you found a great deal today, and called up your hard money lender to go take a look, those are the things they would ask you to provide, and they would provide their objective version of your deal, as a comparison. What will that house be valued at, when you are done with it, and how much with it cost the renovate it? Factor in your costs and your purchase price and you know if you have a deal, or not.
So study valuation -- eg., running comps if you are doing single family.
Also take some time to go through the calculators and tutorials and various materials right here on BP. Great stuff here, and most of it is free.
Houston, TX · Member since 2017 · 25 posts · 3 votes
7y
Originally posted by @Account Closed:
Welcome,
You cannot become a master of this market. This market is too big.
Become the master of a niche area, learn about the pricing, active investors in the area, the best realtors (listing agents) go to meetings, drive around and call FSBO's, and once you master that little circle, you will notice that your knowledge has slowly expanded into other circles. You can't force it or even allow it to draw you easy from mastering your original area. The "thrill" of expansion isn't worth the loss of distraction.
Good luck
“The thrill of expansion isn’t worth the loss of distraction”.... wow. I had a feeling I was taking a more, forced approach. Thanks dude, this gives me perspective.
I tend to get sucked into the small/less important stuff way too much. This post puts me in check. Thanks bro.
But there's got to be something I can study! I mean I'll still make sure the majority of my time goes to FSBO, meet ups, and marketing... I'm a EMT, so I've got LOADS of time on my hand and I hate wasting it, especially when I'm sitting at the station for 12 hours.
How much can you sell it for, after you renovated.
Or how much can you rent it for, should you decide to buy and hold, and then how much will it likely appraise for (you will want to refinance it, once rented out).
Getting renovation costs down is the other part to this -- that is cost estimation, but that is also a form of valuation, isn't it? This is the part where I need improvement.
If you found a great deal today, and called up your hard money lender to go take a look, those are the things they would ask you to provide, and they would provide their objective version of your deal, as a comparison. What will that house be valued at, when you are done with it, and how much with it cost the renovate it? Factor in your costs and your purchase price and you know if you have a deal, or not.
So study valuation -- eg., running comps if you are doing single family.
Also take some time to go through the calculators and tutorials and various materials right here on BP. Great stuff here, and most of it is free.
Im going to make sure Im focusing on these points. Thank you mark!