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[Johann Villalvir]

This is more of a reflecting post thinking about what are the data points that fix and flippers look for to pass or pursue a deal.

I wanted to provide clear, concise data to help our users make swift investment decisions in real estate. The challenge? In a market with hundreds of variables, new investors often find themselves in a black hole of information.

If you're one of the early users who reached out to me, you recall we used to show several properties on a page. Users toggled between options, rarely reaching a definitive 'Yes' or 'No'. To tackle this, I drew inspiration from an unlikely source: Tinder. For those unfamiliar, Tinder simplifies dating choices by showing one profile at a time - swipe right to connect, left to pass, and never see their profile again.

We applied this 'swipe' functionality to real estate investment properties. And the impact? Decision-making became faster, more intuitive.

I am curious, what are those 5 crucial data points you look at a flip deal before deciding to pursue it or pass it?

[KC Pake]

Quote from @Johann Villalvir:

This is more of a reflecting post thinking about what are the data points that fix and flippers look for to pass or pursue a deal.

I wanted to provide clear, concise data to help our users make swift investment decisions in real estate. The challenge? In a market with hundreds of variables, new investors often find themselves in a black hole of information.

If you're one of the early users who reached out to me, you recall we used to show several properties on a page. Users toggled between options, rarely reaching a definitive 'Yes' or 'No'. To tackle this, I drew inspiration from an unlikely source: Tinder. For those unfamiliar, Tinder simplifies dating choices by showing one profile at a time - swipe right to connect, left to pass, and never see their profile again.

We applied this 'swipe' functionality to real estate investment properties. And the impact? Decision-making became faster, more intuitive.

I am curious, what are those 5 crucial data points you look at a flip deal before deciding to pursue it or pass it?

Johann,

Great idea - drawing inspiration from Tinder to streamline the decision-making process in real estate investment. Applying the 'swipe' functionality to view properties one at a time can certainly make the process more focused and less overwhelming for investors, especially those new to the field.

Regarding the crucial data points to consider in a fix-and-flip deal, here are five key aspects that investors typically evaluate before deciding whether to pursue or pass on a deal:

After Repair Value (ARV): This is perhaps the most critical data point. ARV is the estimated value of the property after all repairs and renovations are completed. It helps investors understand the potential profit margin. Knowing the local real estate market trends is essential for accurately estimating ARV.

Cost of Repairs and Renovations: A thorough understanding of the repair costs is vital. This includes material costs, labor, permits, and any unexpected expenses that might arise. Underestimating these costs can quickly turn a profitable deal into a loss. This one can become a bit tricky due to large cost differences in materials and contractors based on location.

Purchase Price: The price at which the property is acquired directly impacts the profitability of the project. A good deal often means buying at a price well below the current market value, considering the cost of necessary renovations.

Location and Market Demand: The property's location influences its desirability and, consequently, its ARV. Factors like the quality of schools, crime rates, local amenities, and overall market demand in the area play a significant role.

Timeframe and Holding Costs: How long the repair and flip process will take is another crucial factor. Holding costs such as property taxes, insurance, and loan interest accumulate over time and can significantly affect the overall profitability.

I know there are many other factors and investors analyze projects using different methods but this is some initial input for the thread.  I'll be excited to see input from others.

Nice Job - Keep Up The Good Work,
KC