Hi, lots of tools in the market to help people figure out what investments are worth going after. What are the biggest pain points when vetting deals and how do you navigate?
Hi, lots of tools in the market to help people figure out what investments are worth going after. What are the biggest pain points when vetting deals and how do you navigate?
Hello Benito, great question.
Biggest pain points are:
- Gathering as much accurate information on the property: condition, tenant situation, seller motivation, title issues - Accurately assessing renovation costs - Determining ARV in a low-inventory market with little comparable data
To navigate:
- Negotiate firmly on contingencies, including site visits, due diligence period, etc. - Obtain multiple renovation bids and expeditor bids to clear any title issues. - Be conservative with underwriting, lean on ppsf when there aren't many similar comps, look at local metrics other than price to gauge accurate pricing (i.e. 3+ year median DOM trends, absorption rate, population growth, etc.)
Hi, lots of tools in the market to help people figure out what investments are worth going after. What are the biggest pain points when vetting deals and how do you navigate?
Hello Benito, great question.
Biggest pain points are:
- Gathering as much accurate information on the property: condition, tenant situation, seller motivation, title issues - Accurately assessing renovation costs - Determining ARV in a low-inventory market with little comparable data
To navigate:
- Negotiate firmly on contingencies, including site visits, due diligence period, etc. - Obtain multiple renovation bids and expeditor bids to clear any title issues. - Be conservative with underwriting, lean on ppsf when there aren't many similar comps, look at local metrics other than price to gauge accurate pricing (i.e. 3+ year median DOM trends, absorption rate, population growth, etc.)
Hi, lots of tools in the market to help people figure out what investments are worth going after. What are the biggest pain points when vetting deals and how do you navigate?
The biggest pain points for getting a value of a property is why Opendoor struggles and Zillow when they did iBuying. There are so many different little pockets to markets, with one street being so nice and then the street adjacent to that street being a bad part of town that there really is a need for knowing the market like the back of your hand.
I invest in long term rentals in a place I grew up in, and I even go back there every other month to check in and see what has been happening and if there is anything new to the area, or community. This is something that needs to happen and should be on your radar when buying a place, even if it is out of state. If you are out of the area, get someone and pay them $50.00 or $100.00 each time you are in escrow on a deal to drive the comps confirm everything and drive that street to make sure all of it matches up.
@Peter Mckernan Great insights! appreciate the insights, especially around differentiating value based on neighborhood dynamics which data may not always reflect!
Hi, lots of tools in the market to help people figure out what investments are worth going after. What are the biggest pain points when vetting deals and how do you navigate?
Hey Benito, great question—there are a ton of tools out there, but the biggest pain points I see when vetting deals usually come down to bad or incomplete data, overly optimistic assumptions, and not fully understanding the local market dynamics. Rent estimates can be off, expense ratios get underestimated, and people often forget to factor in things like vacancy, maintenance, and capital expenditures, which can completely change the deal. Another big one is analysis paralysis—people rely so heavily on tools that they stop trusting their own understanding of the numbers. What’s helped me is using tools as a starting point, then verifying everything manually by checking comparable rents, recent sales, and stress testing the deal with conservative assumptions to see if it still works. I also like to keep my buy criteria simple and consistent so I can move quickly when something actually makes sense instead of overthinking every deal. Over time, you start to spot patterns and it gets a lot easier to filter out the noise. Happy to connect and answer any questions you have!
Hi, lots of tools in the market to help people figure out what investments are worth going after. What are the biggest pain points when vetting deals and how do you navigate?
Be VERY careful of what you post on BiggerPockets.
Your company, Weston, actually sells a solution for the problem you are trying to "innocently" ask about.
Obviously a way to get free feedback and perhaps clients.
The BP Moderators are closely monitoring posts like these...
Hi, lots of tools in the market to help people figure out what investments are worth going after. What are the biggest pain points when vetting deals and how do you navigate?
Be VERY careful of what you post on BiggerPockets.
Your company, Weston, actually sells a solution for the problem you are trying to "innocently" ask about.
Obviously a way to get free feedback and perhaps clients.
The BP Moderators are closely monitoring posts like these...
Appreciate your concern! this is not a free account.