How do I finds comps?

[Steven Cobb]

Hi everyone,

I’m in the education part of learning about wholesaling.

My question is this:

If I find a distressed seller that is willing to sell, how do I know what the property is actually worth? How do I know what price I should try to get the property for?

I’m assuming that I would have to find comps and compare the seller’s house to those comps? And if that’s the answer, how do I go about finding comps?

Any input would help greatly!

Thank you,

Steven Cobb

[Moises R Cosme]

1. Redfin, Zillow, Realtor.com - the filters will allow you to find properties that are available in the market that meet your criteria (beds/baths/square footage & age), if you scroll to the bottom you will typically see sold comparable properties.  You will need to piece together the information and drop it on a spreadsheet, but this is the simplest, free way to do it.

2. Comps:  3 sold properties is your best bet

3. Discounting renovations:  read up on costs for things like roof, HVAC, plumbing, electric etc. 

3a. The entire strategy is to get the Seller to give you a discount below the 'as is' value of the property, in order to get to the 'as is' value use this formula: after renovation value (ARV) - renovation costs - transaction costs (purchase & resale - roughly 5% of purchase price & 4.5 of resale price) - wholesale fee - 15% of ARV (this represents the rough profit that the end Buyer would be looking for)

I hope this helps!!!