Hi all! This is my first post as a member so first off, let me extend an enthusiastic hello and gratitude in advance for the input that comes along the way!
I've begun the process of deal hunting, and have nearly completed our first flip which should list in the next 10 days. So far so good.
I'm acquiring properties in the US, from Canada, and managing the process remotely. Born in challenges I know. lol.
For the first few of these I'm considering the following formula, ARV *.65, minus cost of rehab as a sales price.
So as a remote acquisition - managing all of this by phone and online, and relying on local agents and contractors to land on rehab costs and ARV values, what else would you suggest I do to validate the numbers and ensure a buying partner has sound information to assess the deal? Comps (recently sold and similar comps), invitation for site visits, pictures, anything else we can bring to the mix?
Thanks for any thoughts folks
ARV is solely based off comps assuming you are referring to SFH's or 2-4 unit MFR's.
I would definitely show the comparables. I would show them pictures or videos of the properties. You want to show them everything so that they can easily make a move on the deal.
Thanks guys - After reading the "Guide to estimating ARV", looks like paying for a full appraisal that includes the adjusted comps chart? (with pics and vids, ty hadn't seen that before but makes total sense). Yes Brian SFH's.
The number one thing an experienced buyer will want to see is accurate comparable sales.
This is easier in a conforming market, and usually difficult in a non-conforming market.
If you are not familiar with the particular market, I wish you a lot of luck pulling good comps!
@ Robert Branson, Good Post
When comparing Comps and looking for the true ARV of a property try to always work with an Appraiser that has references from properties that he has appraised in the area in the last 3 months. You're in a unique situation where you're doing business out of country so you want to work with the most knowledgeable people possible. That can give you the best information.
I am a beginner with no deals sold so take this with a grain of salt.
Every person is different. If you have a few specific potential partners in mind I suggest just asking them what type of deals they are interested in and compare that to what you expect from a deal and communicate that to them and see their response/interest. If you don't have those people then start trying to find some because you will need them at some point anyway so the earlier the better since you can use them to filter your potential deals.
I am wholesaling and my #1 buyer told me what he wanted and that is how I am comping deals so you can do the same except you'd be partnering.
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