ARV slows down deal analysis... right?

[Jason Howell]

I'm in the midst of @Brandon Turner's 90 day challenge where I have committed to analyzing at least one property every day for 90 days. So far, I've really learned a lot about the many facets of deal analysis and in particular, the components within the Bigger Pockets calculators that I can safely assume on... But ARV gets me every single time.

On one hand, I'm supposed to find a property to analyze, punch the numbers in and move on, learning what I can along the way. (per the challenge)

On the other hand, After Repair Value isn't something you can just guess on. In order to do it right, you either have to rope an agent into the mix (who has the means with which to do the CMA appropriately) or spend far more than the 15 minutes that I'm expected to spend on analyzing deals every morning.

I feel like at this stage, I'm analyzing deals and more or less guessing on ARV but that's a HUGELY important figure to get right, so my deal analysis is rather moot if I'm just guessing ARV...

Does anyone have any processes to share that make calculating ARV a bit more streamlined? What am I missing?

[John Leavelle]

@Jason Howell

Right.  You need to find what works best for you.

 When I first started a few years ago I did a 30 day challenge.  Analysis 30 properties in 30 days.  I started a blog on it and posted my results for all to see.  There were some Experienced BP members that said I was wasting my time.  That I was stuck in “Analysis Paralysis “.  I should be getting out on the street finding properties and putting in offers.  But, I stuck to my way.  I did not have the time to do what they were saying.  I work 60 - 70 hours a week at a W2 job.

Many others (mostly newbies like me) appreciated my posting.  It helped them learn as well.  I wanted to develop a quick conservative method of weeding out properties so I wasn’t wasting my time.  Doing the challenge helped ingrain the basics of analyzing properties.

At the end of the challenge I started submitting offers on some of the properties that met my criteria.  All were rejected not surprisingly.  However, one Sellers Agent came to us with another deal.  A 2 for 1 distressed property buy.  I bought both.  They in turn lead me to a third property.  One of them was a Duplex on a little over an acre lot.  I am in the process of adding additional buildings to it.

My point is keep analyzing until the proper calculations are second nature.  Find a good investor friendly realtor to help fine tune the numbers.  Then jump in —- the waters fine.