Free comps adjustment tool for an incredibly accurate ARV
Hi Everyone,
Kuba Fietkiewicz, here, founder of online real estate investment software REIkit.com. Glad to be a part of this amazing community here on Biggerpockets.
Today I wanted to talk about a popular real estate saying: "You make your money when you buy."
What does it mean to "make your money when you buy?" In a nutshell, it means that your profit potential is determined by the amount of due diligence you perform on a property, and how accurate your numbers are.
While most real estate investors are familiar with the work of running comps and averaging them to get to an After Repair Value, not as many are aware that they should be including an additional step in the process.
This extra step, which usually takes less than an hour, is in adjusting the comps you've found for differences in features, such as garages and pools. If all of your comps have a pool, and your subject property does not, that's going to be a 10-20k hit to your wallet when it comes time to sell.
The time to find this out is before you buy, not after the rehab. That's what is meant by "you make your money when you buy," and that's why it's so important to adjust your comps.
I built out a free Comps Adjustment tool within the free ARV Calculator on REIkit.com because this step is so crucial to your success.
It's easy to use, and it's thorough, being based on the Uniform Appraisal Report that nearly all appraisers use.
I encourage you to check this free tool out and take just 30 minutes from your day to evaluate your latest potential property, and get to a more accurate ARV:
https://tools.reikit.com/comps
If you have any questions or suggestions about the tool, chat with me on the site, or you can leave a comment below.
Cheers!
Kuba