Any good resources to calculate ARV and renovation estimates?
Hi, I'm fairly new in this wholesaling niche and would like some guidance for how to gauge for ARV and renovation estimates? Any general guidance for what to look for in viable wholesale properties would be greatly appreciated as well. I look forward to connecting with you all!
Quote from @John Cha:
Hi, I'm fairly new in this wholesaling niche and would like some guidance for how to gauge for ARV and renovation estimates? Any general guidance for what to look for in viable wholesale properties would be greatly appreciated as well. I look forward to connecting with you all!
To gauge for ARV (after repair value) and renovation estimates, there are a few key factors to consider. First, research recent comparable sales in the area to get an idea of what similar properties are selling for. You can also use online tools such as Zillow's "Zestimate" to get a rough estimate of the property's value.
Next, consider the condition of the property and the potential costs for repairs and renovations. Talk to contractors and get quotes for the work that will need to be done, and factor those costs into your estimate. It's also a good idea to add a cushion to your estimate to account for unexpected expenses or changes in the market.
As for what to look for in viable wholesale properties, some key factors to consider include:
- Location: Look for properties in areas with strong rental demand and potential for appreciation.
- Condition: Look for properties that are in need of repairs or renovations, but are still structurally sound and have good potential for profit.
- Price: Look for properties that are priced below market value, allowing for a good profit margin after repairs and renovations.
I hope this helps, and good luck with your wholesaling!
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Hello, John! There are many useful resources for ARV like, Zillow and Trulia for starters. Many wholesalers love Propstream. The "problem" with these is their use of average $ per sq ft to set value, which is only a ballpark and less desirable than say, a quality CMA from the investments knowledgeable friend in real estate (agent/broker) you'll be sure to include on your team :). And, whatever you do, reciprocate. Make it worth their while by offering your friends dibs on the deal! Oh, and make sure to include the projected rental values (and metrics) buy and hold investors like for some reason ;), for which Rentometer does a good if not great job, at least in most MSA's, not so much in rural areas.
Loving a wholesaler concerned with quality repair estimates, I like and use Homewyse, quite a bit. All the best!!
P.S. - I'm always happy to help.
Quote from @Norberto Villanueva:This was great to read. I was hoping you could explain something to me as I'm new to wholesaling as well, and want to start Jan 1st in the middle Tennessee market. I keep seeing on the forums that investors look to be able to refinance and get the cash back out. What exactly does this mean? What do I then have to take into account when locating wholesale deals for investors?
Hello, John! There are many useful resources for ARV like, Zillow and Trulia for starters. Many wholesalers love Propstream. The "problem" with these is their use of average $ per sq ft to set value, which is only a ballpark and less desirable than say, a quality CMA from the investments knowledgeable friend in real estate (agent/broker) you'll be sure to include on your team :). And, whatever you do, reciprocate. Make it worth their while by offering your friends dibs on the deal! Oh, and make sure to include the projected rental values (and metrics) buy and hold investors like for some reason ;), for which Rentometer does a good if not great job, at least in most MSA's, not so much in rural areas.
Loving a wholesaler concerned with quality repair estimates, I like and use Homewyse, quite a bit. All the best!!
P.S. - I'm always happy to help.
Quote from @John Cha:
Hi, I'm fairly new in this wholesaling niche and would like some guidance for how to gauge for ARV and renovation estimates? Any general guidance for what to look for in viable wholesale properties would be greatly appreciated as well. I look forward to connecting with you all!
Hey, just wanted to say great question. It also helped me a lot to see the responses. I hope the best for you in your market.. I commend you for having the strength to ask on the forum. Unlike me who researches on Google for hours instead of taking advantage of the infinite knowledge here. I'm working on it however. Haha. Good luck!
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Connect with a few local flippers and ask them if you can shadow them during the walkthrough and offer process. Do not be a pain in their butt, just shadow them. Get all the numbers from them and then go home and analyze the crap out of those numbers.
Practice. The more you do it the easier it will get.
Now all I have to do is take a quick glimpse of a kitchen, bathroom, or house in general and I can instantly tell you whether it is a $80K flip or a $100K flip.
It seems intimidating right now, but I promise you it is very very easy once you get the hang of it.
Quote from @John Cha:
Hi, I'm fairly new in this wholesaling niche and would like some guidance for how to gauge for ARV and renovation estimates? Any general guidance for what to look for in viable wholesale properties would be greatly appreciated as well. I look forward to connecting with you all!
It looks like you're a Realtor. If true then you already have access to the best source to determine an ARV. Use the MLS to run Comparative Market Analysis (CMA).
Regarding renovation estimates, there's a lot to that. We've developed our own methods over the years but starting out we used homewyse.com
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