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Updated about 8 years ago on . Most recent reply
Comps from Realtor.com/Zillow/Trulia OR Get License
My husband and I are starting into real estate investing. We've done a few deals but now we are ready to get into it more fulltime. He's a contractor and I'm an IT professional, specializing in workflow development. We have a personal friend that is a wholesaler and would like to 'feed' us his deals instead of rehabbing them himself. We're trying to figure out what roles we should each take on. Right now, we're thinking that my husband does the project management and I do the design, bookkeeping and deal analyst. So that leads to the question in this post: Can I get good comps using sites like Realtor.com, Zillow or Trijulio? Or should I get my real estate license to get the comps and save money on the sales? Or get an agent?
Most Popular Reply
@Account Closed Don't use comps from Zillow or Trulia. Redfin is available in Denver, and that's going to be your best non-mls alternative for initial analysis purposes as it is connected to the MLS. When you do find what appears to be a deal, then you should have a relationship with an agent to run comps from the MLS. Being an agent can help, but is not entirely necessary. You should at least look into a Groupon for online agent classes if only to educate yourself on the analysis part, and if you like it, then take your test and get licensed.
@Account Closed Don't use comps from Zillow or Trulia. Redfin is available in Denver, and that's going to be your best non-mls alternative for initial analysis purposes as it is connected to the MLS. When you do find what appears to be a deal, then you should have a relationship with an agent to run comps from the MLS. Being an agent can help, but is not entirely necessary. You should at least look into a Groupon for online agent classes if only to educate yourself on the analysis part, and if you like it, then take your test and get licensed.
Zillow tends to be pretty accurate around here if there's lots of comps and sales. It works well for the 3br/2ba SFH, but not so well for anomalies like lots of land or lots of bedrooms.
@Account Closed one could write a book on that subject. I would start with looking at who is representing investor special properties that you're looking at. They may already be comfortable with working with investors, or may refer you to someone. Then it's a matter of setting expectations and building a relationship.
@Account Closed
Awesome that you and your husband are looking to take things to a higher level. A couple thoughts
(1) Regarding Comps - you can use Zillow / Redfin / Trulia / Realtor.com / etc. for comps or you can get your Real Estate license and use the MLS. However - I've found that how you comp is more important than what you use to comp. Many people draw 1/2 mile circle around their property and look for listed and sold properties. What we should be looking for is similarities in: square footage, amenities, view, age of house, rehab styles (all rehabs are not equal), alley vs no alley, through street vs cul-de-sac, corner lot or no, east facing vs. west facing, and 15 or other criteria that affect value. Most people only consider proximity - which is not enough to get solid ARV.
(2) Finding Realtors - the best Realtors for investors are Realtors that invest themselves.
Some questions you want to ask are:
- Describe the last deal you did (you will learn a lot about what they know by having them talk about what they do)
- Can you give me the name of a few contractors you've worked with
- Can you give me the name of some hard money lenders you've worked with
- Explain how you arrive an your ARV?
I know a handful in the greater Denver area and give you a few names. Drill them with these questions and you'll notice the difference between investors that have a real estate license vs. Realtors that say they are investors.
Zap
Our MLS cut the data feed to Z&T. R.com is owned by newscorp, and they don't get a lot of the listings either. If you want good data, then you need MLS access.
You can get your license, but if you are not going to use it more than a few times a year, it isn't worth it. It also becomes a liability as you won't do enough deals to really know what you are doing.
Hire a pro unless you are going to spend the time to become one.
@Matt M. That makes sense. I've been thinking along those lines myself. Thanks!
If you are just looking for sales data as a one-off thing, I'm sure someone can give you that no problem. It's pretty easy to send along that data or even show it to you in a 15 minute meeting.
If you are looking for consistent comp and up to date market analysis over a long period of time, you will probably need to hire an agent or get your license. I know there is a time and place for finding a good agent, but since you are considering getting your license anyways, it doesn't sound like you are looking for specific real estate assistance, other than simple access to data. Sounds like you just want data to make sure you are estimating ARV. Maybe you can arrange something where you just pay an agent a small fee for help in pulling comps.
Hey @Account Closed
Great plan figuring out yours and his roles before you do this. It is very important to have those expectations and boundaries set to be the most efficient. The book the E-Myth talks about defining every single job that happens in your real estate business and putting in this case your husbands or your name next to it. Slowly over time you can hire people and replace yourselves after making systems for how to do those jobs.
Finding Realtors. I know a couple great realtors in Denver you should hit me up and I'll be happy to connect you.
@Joseph Graeve, great suggestion! I will hijack it from this thread and use for myself!
@Scott Trench Good points and you are right, I'm currently mostly concerned about getting my ARV right. And it might be the way go to pay an agent a small fee. Thanks for the suggestions!
@Joseph Graeve Good ideas...I like the idea of writing out who does what. I'm all about systems. I just need to understand the process to setup the system. I'll be in touch.
There are other decent paid sources such as get comps now and realtytrac
I like that you are systems driven,I think a lot of people miss that vital part starting out!!