Difficulty pulling Comps

13 Replies

Hey BP Fam!!!

Any feedback is greatly appreciated... I subscribed to Deal Machine and started driving for dollars the same day. I went to a neighborhood in Evansville, Indiana where there were a some vacant, unkept properties. I started taking pictures and I sent those pictures to deal machine. People started calling immediately. So, I went out and met with the sellers, found out what the motivation was to sell, after that... I looked at the properties, took a TON of pictures and went back to the homefront to see if anything I looked at made any sense.

I went to Zillow, Realtor.com & homes.com to pull some poor mans comps but, with the neighborhood being so old and the properties being built in the early 1900's, I couldn't find an ARV. Out of all the sellers I've conversed with, there's one in particular that owns two properties right next to each other. He doesn't want much for them but, with looking at rehab and without having an accurate After Repair Value, Wholesaling won't work.

My first mind told me to lock the properties up and start marketing them on Craigslist & Facebook for what's being sold in that neighborhood... The voice of reason sent me to BiggerPockets. The seller is waiting, I've used the little bit of Real Estate Jargon I'm familiar with to keep the seller from losing interest. He's patient, I don't know if he knows I'm a rookie... That doesn't matter to me. My main focus is to help the seller and to gain some experience. I know I'm going to make mistakes and I'm fine with that. Maybe that's the learning curve. I just don't want to do anything unethical or illegal.

Give it to me straight.

Michael, I'm definitely interested to see if any local Evansville investors jump on here to chime in, and also what those wiser than me say about determining ARV for an area that doesn't have a lot of comps. I share your concern.

Would you mind DM’ing me the cross streets so I can get a better idea of where you’re looking?  I’m an Evansville native, and though I haven’t lived there in nearly 20 years I’m possibly interested in investing in Evansville in the future.

I'm wondering if you created a buyer's list for that area if you could work backwards from there.  I buy in Evansville and I know (or can figure out) what I can pay in certain neighborhoods.  Maybe prior to tying the property up at a certain price you could line up some potential end buyers and negotiate a price that includes your spread in the middle.  I'd be interested to at least see what neighborhoods you're looking at to see if it lines up with what I'm buying.  Feel free to DM me.

Michael Freeman- If you are looking to wholesale these I would be careful. To me I don't think your risk is worth the reward here.  There are a lot of areas that can cash flow very well.  I would consider holding onto them after rehab and getting a tenant in there. Then try to sell after that.  Obviously, I do not know the addresses but something to think about as a beginner...not sure you want to start out with a risky whole sale deal that won't be worth it. Good luck man!

@Taylor Morrow thanks for the feedback. You know??? When I came across these properties, the first thing that came to mind was Brrrr. But, I haven't done any deals yet and I don't think any lenders will fund me due to my lack of experience. Wholesaling just seemed like the best option for that reason.

The buy and hold strategy sounds lovely. I just don't think any lenders will take me seriously as a beginner.

Have you spoke to any lenders? You very well might be correct but it wouldn't hurt to connect with someone.  Even if that means you do not get any help the first time but it builds for the future. Good luck and be safe

@Taylor Morrow I guess it's time to start making some calls and building some relationships... Honestly Taylor, when I went out driving for dollars 2 weeks ago... I never expected any of this to happen. I'm here now though. I guess it's time to make something great happen, not only for myself but for others that I may encounter. Thanks for the feedback. Stay safe.

@Michael Freeman  

hey there my guy hows it going with you Im glad that your stating out your journey into this great world of Real Estate and I can see that you have ambition the mark of a true champion , Im glad that you on BP now , I just wanted to add that houses that are in the year 1900's are considered pre colonial you don't want to deal with that just yet as your starting out look for houses that are from 1970 to 1990 those are the houses is were you should start , stay blessed stay safe and welcome to greatnesses have a spectacular week Michael  

Hello Michael. I'm in Evansville. Try the Evansville GIS. It will give you all kinds of information and links to the vanderburgh assessor page. You should be able to get the values you need from those two places. Hope that helps.

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