Navigating reliable tools to determiniong worthy investments

[Account Closed]

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?

[Abel Curiel]

Quote from @Account Closed:

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.) 

All the best!

Abel