Is it a good deal? Adjust your comps for a more accurate ARV

[Kuba F.]

Hey Everyone,

Here on Biggerpockets you see questions from the community such as, "what is the biggest mistake you've ever made in investing." People want to know what actions they can take to not make the same mistakes. I have my own flip disaster story, that I often share on webinars, about how to fail at flipping. On my first flip, there were a number of events that went wrong that I could have foreseen. In retrospect, however, I never would have purchased the property in the first place had I known what I do now. One of the main reasons why the flip failed is because, when calculating the ARV of the property I wanted to buy, I did not adjust my comps for features.

If I had taken the extra 30 minutes to compare the subject property features, like garages, against the comps, I would have discovered that the subject just didn't have features that all of the other comps did, erasing $10,000 dollars of my expected profit.

My frustrated experiences led me to create my real estate investment software company, REIkit.com. One of the first tools I built is a free ARV calculator, that also includes a comps adjustment tool, to help others avoid the same outcome.

If you think the ARV calculator and comps adjustment tool would benefit you, I welcome you to try it out. There is also a video tutorial on how to adjust comps to get to an accurate ARV: https://tools.reikit.com/comps

If you have any questions, feel free to reach out.

Cheers,

Kuba