Intermediate and Seasoned Investors
Other than the ARV and purchase price, what are some other numbers you take into account when evaluating a deal? Do you get this information from a realtor?
#1 Creative Real Estate Financing Contributor
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- Scottsdale Austin Tuktoyaktuk
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#1 Creative Real Estate Financing Contributor
- Investor
- Scottsdale Austin Tuktoyaktuk
Quote from @Lucika Suarez:
Other than the ARV and purchase price, what are some other numbers you take into account when evaluating a deal? Do you get this information from a realtor?
What kind of deal?
Fix & flip
Buy & hold
Wholesale
New Build
Multi family
STR
Storage units
Mobile homes
Seller Financing
Subject To
Lease Option
Land Contract
Quote from @Lucika Suarez:
Other than the ARV and purchase price, what are some other numbers you take into account when evaluating a deal? Do you get this information from a realtor?
It will really depend on what your game plan is for the property. If it is a long term buy and hold, you will want to consider the purchase price, rehab cost, current construction loan and mortgage rates, and market rent for your property. I am not going to write out for each strategy because this post will turn into a book lol....but my advice find a realtor who is also a local investor (not easy to find!) that can guide you in this process for what your specific plans are.
For a fix and flip and a buy and hold
#5 Investor Psychology Contributor
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- Greenville, SC
IRR
For a Fix and flip my ARV is based on apple-to-apple comps close by. Next figure out recent sales. Are houses selling and what is the average days it takes to sell (DOM). I also take a look at nearby crime stats and schools. Another number to know is the renter to buyer ratio in that neighborhood. For a quick flip or a buy and hold I like to be in a predominately homeowner areas. Lastly, for a buy and hold I look at similar stats and current rents in the area. These are off the top of my head. I hope that helps
Quote from @William Powell:
For a Fix and flip my ARV is based on apple-to-apple comps close by. Next figure out recent sales. Are houses selling and what is the average days it takes to sell (DOM). I also take a look at nearby crime stats and schools. Another number to know is the renter to buyer ratio in that neighborhood. For a quick flip or a buy and hold I like to be in a predominately homeowner areas. Lastly, for a buy and hold I look at similar stats and current rents in the area. These are off the top of my head. I hope that helps
Thank you William, I appreciate that.
Quote from @Mike Hern:
Quote from @Lucika Suarez:
Other than the ARV and purchase price, what are some other numbers you take into account when evaluating a deal? Do you get this information from a realtor?
What kind of deal?
Fix & flip
Buy & hold
Wholesale
New Build
Multi family
STR
Storage units
Mobile homes
Seller Financing
Subject To
Lease Option
Land Contract
I'd like to focus in fix and flips and buy and holds (STR and LTR).