Savannah, GA · Member since 2016 · 21 posts · 1 vote
Just had someone call me from an ad I had in the paper. My first call and I was so nervous I couldn't even think of what to say right! So I got the basics of how much the house is worth and what they owe and said I'd call back.
So I asked how much they owe on the house they say around $89,000, and that the house is worth around $120,000. I looked on Zillow.com for information on the property and it says it's worth that price range but says it was last sold in 2000 for $88,000. What the heck? What am I supposed to go by?! How do I know the person isn't just trying to say they owe more to get more money?!
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
You need to get current comps first. What it sold for years ago has nothing to do with current value. What do you intend to do with the property? DO NOT USE zillow or realtor.com to determine value. Ask an agent to pull comps for you. If you can buy it at 90K and it is worth 120K in current condition that could be an excellent way to start a portfolio.
Savannah, GA · Member since 2016 · 21 posts · 1 vote
10y
I feel like I know the basics to everything, but when it comes to doing it, I freeze and question what to do. Maybe I should start out birddogging?.. But how would I find someone that will do that and split some of the costs?
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
You need to get current comps first. What it sold for years ago has nothing to do with current value. What do you intend to do with the property? DO NOT USE zillow or realtor.com to determine value. Ask an agent to pull comps for you. If you can buy it at 90K and it is worth 120K in current condition that could be an excellent way to start a portfolio.
Investor · Decatur, GA · Member since 2015 · 56 posts · 38 votes
10y
Melinda Campbell I think you should be asking the following questions:
1. Why are they selling it? Who was that person you talked to and what is his incentive to sell the house?
2. What is the house really worth now? Check out housecanary and get a free report on it - first 10 are free, no need for cc info
3.what can I rent it for ?
4. What is the condition of the house?
5. How can I finance the deal?
If you can answer the first 5 and you like the answers - you should move to number 6.
Treat each lead seriously and your bound to find a winner.
Good luck!
Investor · Templeton, CA · Member since 2016 · 60 posts · 21 votes
10y
I'm not sure what the rules are in your state, but in CA you can call any title company and request a property profile. The document is free and will contain all the necessary information (loans, dates, who's on title) to make a sound decision. Usually the profile came with recent sold coming comparable.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
Any agent can pull comps for you. As previously stated, a title company can usually check to see if there are mortgages, etc. BE SURE and close with a title company and get title insurance if you close.
Rental Property Investor · San Diego, CA · Member since 2016 · 507 posts · 171 votes
10y
@Roberto Moita Interesting! I did not know that (newbie here). So when calling a title company, would I literally just ask "I would like a property profile on 123 Main St please" and that's it? What kind of information is included? Is it just financials or can they also provide owner info?
Investor · Fort Walton Beach, FL · Member since 2015 · 568 posts · 966 votes
10y
@Melinda Campbell Good on you for taking action. I suggest networking at your local REIA to find someone you can ask about ARVs. Realtors are great, but where I am if you call a random Realtor and ask them to comp a property you either 1) wait 3-7 days to get comps 2) get comps quickly but inaccurate 3) never hear back
If you find an agent through your local REIA or just another investor they can likely give you a fair estimate of ARV. Just make sure you trust them enough that you can provide property details, address, etc.
You can find when they last refinances at your local county clerk website. That should say how much it was for. From then, you can figure out from googling roughly how much they may owe now. If they say they owe $89,000 that is likely your most accurate guess since it came from them
Zillow.com can be way off so I wouldn't rely on that. But, you can use it to view recently sold properties and obtain comps from there. You can also obtain comps from county public records.
Ask them what THEY think it's worth then moments later ask how much they were HOPING to walk away with after all the cost & the mortgage are taken care of. It will give you a real indication of motivation. You want to talk to the guy or gal who says Can tell you I think house is worth 120k. But I was wanting to walk away with 90k or atleast some acknowledgment of a willing discount . They most likely will be off on what its worth but the point at that stage is really to just determine motivation Before even doing any due diligence .
Saves time . I could care less what the house is worth if the guy thinks it's worth 100k & wants 100k that tells me right away he's not my customer.
Utica, NY · Member since 2016 · 23 posts · 4 votes
10y
Lol I literally just went through the same phase 5 months ago, relying on Zillow, and other things to find the ARV. It is actually possible to get compatibles through realtors, if you great relations with them, just gotta be nice😊
Investor · Templeton, CA · Member since 2016 · 60 posts · 21 votes
10y
@Kevin Phu. When calling a title company all your need is the to property address. The information contains.
1. Legal owner(s) information
2. Loan recorded against the asset
3. A list of recent properties sold in the area
4. When property was purchased and how much
5. Property history aka chain of title
6. Copy of plot map
All the above are vital information that an investor needs to know before making a decision to invest.
Rio Rancho, NM · Member since 2016 · 57 posts · 41 votes
10y
I'm just starting too and I don't know much, but I do know you need to know a lot about a property, and you can't rely on Zillow and the current occupant to give you the information.
I didn't try this, but supposedly the trial is free for, I suspect, one report--who knows:
Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
10y
If you want to birddog it, then forget about getting anything but experience for your first deal. That is the main point. Also I'm assuming this is in a local area. Do you know it well? Have you zillowed all other similar selling homes around it? Go check out the property personally and look at the structure and make your own assumptions.
Savannah, GA · Member since 2016 · 21 posts · 1 vote
10y
Yes I was thinking of birddogging mainly just to get some experience in. At least so I know what to do. I do know the area well I've lived here my whole life, but it's a city so I don't know where every street or building is.
I now use his purchase agreement and follow his phone "script" pretty closely when I get phone calls. Doing it this way makes things EXTREMELY simple. You don't need comps to get a property under contract.
I don't wholesale but I've gone from 0 to 3 properties in 5 months-one of which I would have never got without the help found here on BP and from @Michael Quarels' website.
@Tareq Salaita, I just tested Housecanary and a property I have had two realtors tell me it would sell for 400k came back at 222k on their site. Also was 2 bedrooms and 1 bathroom so didn't seem too accurate. Do you see that happen much?
I found all of this very useful, thank you very much!