All Forum Posts by: Arthur Banks

Chad Truran Bill Gulley Thank you for all that valuable info. But I think you missed my question. I may be wrong here still, but I'm not asking him to know what I plan to put in or how I plan to rehab, but rather what is a similar house in move in ready condition selling/on the market for. How does one determine an after repair value without knowing what is selling in the area?

Of course I need to visit open houses and listed homes to determine if adding granite is overkill or not. Whether Kohler or Stanley is supported in the area.

"Looking at sales in need of repair are not good comps for the ARV, unless your after repaired house will still need more repairs! You need to look at move-in ready comps if that is the condition you'll be selling the property in." Bill, that's exactly what I said and is my the whole point of this thread.

So again, my question is how am I to determine the value of a rehabbed home if the comps I receive are NOT move-in ready and rehabs themselves.

1) Should he not be providing comps of recently sold (say last 6 months) homes that ARE move-in ready?

2) Isn't that how the market is determined by what end-buyers are willing to PAY for a home, not what it's listed for? Seeing what a home is listed for only tells me that. I doesn't tell me what it actually sold for. I need to know what homes are selling for, right?

I totally agree I need to be familiar with my market. Absolutely. And I am doing the things you suggested above.

Also, I agree, I need not only rely on him to provide comps but I need to visit open houses and listed homes. Agreed. But that isn't the point/question of this topic.

Not being a wise-guy here, just trying to reiterate my question. Shouldn't the comps be of homes that have sold, move-in ready with amenities that support the area/market?

All responses are welcomed.

Being fairly new in this, I thought I'd ask this question here before I "fire" my realtor :) I have a buddy that's been a realtor for more than 5 yrs (I'm guessing it's at least that). I don't believe he's worked with many investors.

I sent him some properties I found on bidselect and he also sent me some from the MLS. I in turn asked him to get me comps so I could know what the ARV (after repair value) would be after rehab. What he sent me back were properties that recently sold, but all needed work. None were move in ready. I take that back, one had been rehabbed. So I asked how can I roughly determine what these properties will sell for after repair, so I can work the numbers and figure out if it's a good deal, if all your comps are similar "in-need-of-repair" homes? His response you can't really tell what the ARV will be. I'm new and all, but that just doesn't make sense. Suggestions? Coach him or find a new realtor. I will say we have always talked of figuring this out and working together.

Thanks in advance BP family.

@Robert Steele No that's what I was asking, kinda. But that is confirmation of my suspicions.

@Lynn M Thanks for the detailed response. Those are also confirmation. Good to know information.
What is "JTWROS"?

Lynn M. That's good information. But I'm not sure what you mean by "who pays repairs, turnover & mortgage during vacancies."
What built-in protection do married couples have?
I have also heard about married couples keeping it separate to qualify for 10 properties.

For those of you who invest as a couple:
A) what are/were some of the challenges you face(d)?
B) Do you have separate attorneys?
C) Do you keep everything separate? (bank accounts, LLC's/Corps, etc.)
D) Anything else you may want to add?

Ryan M. or Frank Gucciardo
What is the Rent to Purchase or Rent to Rent value you each speak of? What is that used used to determine?
Also, which is correct term?

I planned to use agents, marketing, word of mouth, driving the neighborhood, etc. Should I stick to agents? If no, then suggestions for the other methods?

Clay Huber
Thanks. I'm looking to buy-hold and buy-fix-flip. Even with that understanding, I still am not sure, content-wise, what my site should look like. What info it should contain. With what you've shared, that looks to me like a one page site. Not being a wise-guy, I just don't have any idea what the site content should be. I looked at your page and I'm nowhere near that level.

Jon Klaus
Yes, that's exactly how I see it. I (well my parents) paid for my degree and I don't even use it in my profession. :) Education costs and I finally realized that.

For those who found deals on the MLS, were you just lucky? I imagined deals wouldn't stay there very long. So MLS is a good starting point I take it.

I'm beyond ready to get my business started. I was all prepared to order business cards, when I realized I don't have a business website. I believe a key factor in appearing to be a professional company/investor is having a website. Problem is, I don't know what my website should contain. I have no property, I'm just getting started. Help please!!!

Thanks in advance.