Over the last 6 months I've been running numbers on about 60 homes per month.
I do it nationwide usually with Zillow by my side. (For comps, not for Zestimate).
It's the only way I'm able to find "diamonds in the rough" since my primary market, Atlanta, has gotten too competitive.
Do you personally run them or do you have an assistant do them?
I do them personally. As our profits increase I may want to keep someone in-house to help out. Right now, I feel comfortable "owning" the process, knowing that any mistakes in judgement are my own.
Hi @Ben Bakhshi
How do you analyze these properties i.e. what process do you follow?
Below is what I do to find and analyze the properties.
Step 1. Find the properties: I do this by setting up right alerts on sites like (redfin, kw, zillow etc). Based on a pre-defined criteria within the zipcodes. Properties that make it to my inbox through wholesalers. Off-market properties sent to me by brokers.
Step 2: Browse: through the results from step 1 in the form of daily alerts and emails to see what properties seem like good candidates.
Step 3: Conduct a spot check: At this point I am doing a quick spot check based on the price and the type of the house that is offered. Most of the time property valuation simply don't make sense so they are quick to eliminate. Usually, very few properties make it pass this step. Properties that make it through the valuation and price are added to my potential favorites. For these properties I do a high level calculations 50% rule, 2%/1% rule etc. Some make it and most don't.
Step 4: Run Numbers: For the handful of properties that do make it past step 3 I run a quick analysis in my spreadsheet where I populate information. Even before putting the numbers in the spreadsheet I have a good feeling about the properties and I am on the phone with my agent trying to schedule a viewing and put an offer.
Step 5: Schedule In-Person Viewing: At this stage everything checks out and I am just making sure the property has good bones etc. Chances are if I make it to this stage and spending my time I will be placing an offer on the property. Just to give you an idea in the last 6 months I have found 6 properties that made it to Step 5.
Step 6: Put and Offer - I typically place an offer the same day for the asking price and 30 day close. Now here is where it all falls apart in Atlanta. The market here is so competitive that all the 6 properties I found had cash offers over and above what these properties were listed at within 2 days of listing.
Step 7: Keep pushing and doing it all over again until I find a deal.
So to answer your question I see 10-15 properties a day. Finding 1 good property in a month. Closed 1 property so far this year.
Hope that helps.
I look forward to hearing what your process is and how you find the deals?
Azeezeh man, you should be buying much more than 1 deal a year around Atlanta!
For now I am buying properties at auctions, since I don't know what price they will sell for, I need to come up with a max bid for each one that I am interested in.
My method has begun improving and I'm trying to automate parts of my decision making.
Every month I get a new list.
I find comps, run ARVs, and repair estimate for each property.
"Evaluations" are not a metric that I track. However, it seems like I evaluate 20 for every offer I make. One out of five offers get accepted.
I do offer 90% on off market deals (except for trash houses where ask price is ridiculous).
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing