All Forum Posts by: Account Closed

Hi Everyone -

I've been calculating ARV for quite some time and wanted to get the community's perspective on it. Specifically:

• If you don't find true comps (similar house with similar beds, bath, SF etc. etc.) do you stop?
• If no, are you making adjustments to make a comparable property comparable?
• Do you look at solds only or do you look at pendings and actives as well?
• Does anyone use a $/SF as their valuation tool?

My sense is that if I can't find true comps and then I start making adjustments to make a property comparable to the property I'm evaluating, my valuation risk is higher and therefore I would want to add more buffer to my profit potential.

Just looking to get some feedback on how others do their valuations.

@Kortez Walker , I do direct mail marketing (absentee owners and probate) and get a lot of leads but here are some other suggestions:

• Hiring a bird dog to find vacant properties. Haven't done it yet but for about $5/lead you get owners name, property address and mailing address.
• Hiring a bird dog to cold call FSBOs and give you the lead information. Haven't done it yet but for about $7.5/lead you get the owners name, phone number, property address, reason their selling, repairs needed, mortgage info etc. etc.
• Creating a website and driving traffic to the website through organic SEO - other than the website cost, you can do the constant content update and it's free!

Good luck and keep us posted.

@Justin Escajeda , I'm assuming you haven't been able to get it under contract so that you could have recourse if they backed out?

It might be worth reaching out to John Fredo on BP. His strategy is exclusively mobile homes. He was on podcast 75.

Good luck and no need for discouragement. Mark Cuban said "Every no gets me closer to a yes". Just keep trucking.

@Brandon Sturgill , when I've listed a property with a realtor in the past, it's typically on MLS, Trulia, Zillow etc. etc. They also put on Craigslist. I've never done direct mail marketing for a property that I've renovated but that is a good (but expensive) idea. Also, I've never done Social Media sites like Facebook, LinkedIn, Google+ or the like. But again, I think this is a good idea (maybe not as expensive). Especially if you can join groups on these social networks specifically related to home buyers. Good luck.

@Charlie Hampton  , your house is very nice...great job! So is the all in cost around $40/SF for this property (not considering the land price)?

I ran across a lot that is 0.80 acres with a 924 SF Cape on it in Chester County Pennsylvania . The existing house is situated in a way that one could sub-divide the lot and build another house on the other 1/2 of the lot.

I figured out what the renovation costs and ARV are for the existing house, but being I've never done new construction or modular homes before, I'm struggling on how to estimate what the other lot would look like in terms of cost and profitability.

• Do I need to find other modular homes in the area for an ARV or is new construction enough (whether modular home or not)?
• Is your incurred cost on the above property representative for what I should estimate?

Any feedback would be greatly appreciated. The property/lot in question seems promising but I don't feel that I can determine the overall profitability (yet).

Hey @Mike H. , sorry for the delayed response and thank you very much for your assistance. I would like to private message you on your questions and maybe we could talk through a few of these. Let me know what you think.

@Tom La Rosa , I will keep you posted.

@Justin S. , Thanks for the perspective. Are there any programs I can buy that could do what I want?

By the way, I clicked on your website above "Rezamp.com" and added my email address. Looking forward to getting some information from you soon.

@Richelle T. 

Thanks

@Richelle T. , thanks for the response. I appreciate it. What do you mean by "for loop" vs "discrete entry".

Hi Everyone -

In an effort to determine ARV on a potential fix and flip in an efficient manner, I've asked my r/e agents to send me data extracts from the MLS on the comps. This allows me to avoid manually typing in the information (sold price, concessions, beds, baths, sq ft etc.) for each property into excel. This has saved me significant amount of time.

What I would like to do now is create some sort of macro that can take such information and automate various formatting and calculation functions (based own my own assumptions) to calculate the ARV estimate (something similar to what an appraisal calculation would look like, where the address is presented horizontally, and the inputs vertically starting with the sale price and making adjustments between the subject property and the comps).

I tried doing the "Record Macro" function in excel but Excel gets confused easily. For example, the macro was built recording an analysis I did with 4 comps. If I try to use the macro for an analysis with 5 comps, it doesn't pick up the extra comp. 

Is there any kind of (legitimate) add-in that can do the above? If not, are there any programmers out there that could assist me?

Any assistance would be greatly appreciated.

Thanks!