Deal Finder Software (Need Your Feedback!)

[Sebastia H.]

Hey guys,

I was about to send these 2 wireframes (made into a slideshow to demonstrate how it works) to a programmer to have it developed into a web tool - basically it scans the zip code for current listings by $/sq ft and shows the lowest price per sq ft as "deals":

https://www.slideshare.net/secret/4o378v4Enp7Mia

I thought it might be helpful to share this concept and see if anyone else would be interested in using such a tool.

What do you guys think?

[Chris Mason]

Originally posted by @Sebastia H.:

Originally posted by @Chris Mason:

I love the idea. But it's not grounded in reality.

[...]

Yeah, obviously not a tool to make offers with but a way to "filter" out the overpriced stuff on realtor sites. Thanks for the feedback.

My other idea was to scan multifamily properties and relay with rentometer pricing to see if theres a missed opportunity to capitalize on an underperforming property.

The filter wouldn't work. A place going for more per square foot than another place (again a horrible measure to use) might have a glorious kitchen, and square feet of good kitchen is worth more than square feet of living room space... both to a renter, and to a buyer. What each square foot is used for isn't going to appear in the public records, and you shouldn't trust what a realtor puts on the MLS even if it did appear there.

The second could work, if you've got a database NOT based on the MLS or publicly available data for how much rent folks are paying. As soon as it hits the MLS, it's too late. There are enough bird dogs watching that they are going to find the hit just about as fast as your algorithm does. (Really what happens is realtors get pocket listings, and notify their premier clients pre-MLS, which is why no one on BP shares their "super awesome investor friendly realtor".... they don't want to share those leads)

It's not like the algorithms to calculate cap rates and noi and all that are a big secret. 

If you want to use an algorithm, it would need to be a NEW one that only you use, that basically involves you discovering or knowing something that no one else does, that is a better predictor of success than what anyone else is using. And if you found that, and it was a good predictor, you'd be an idiot to share it with anyone regardless of price... but I'll buy it from you for $20, if you're interested in selling. :P

Real estate is all about relationships, my man. I know that is anathema to the ethos of silicon valley, but it's the truth.