All Forum Posts by: Cory Baker

For a quick look before getting too detailed of a comparative analysis I like to:

First: Google the address (Make sure at each point you have the correct address)
Second: Check these three (usually through Google) Zillow, Trulia, Eppraisal 
 (Maybe Realtor.com and or Movoto or Avrify-if they pop up)

Third: Check Redfin Here I get more detailed later.

(BTW,PropertyShark wanted to charge me)
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Eppraisal is usually low. When I see the ZET average is close in number and I like the numbers of the prospective property in comparison or it's asking price; I take a more indepth approach.

Trulia, I've read has been purchased from Zillow but I really appreciate their Crime Temperature map. The greener the better.

Redfin you have to have a free account with and I use their Home Value Tool. 

   Here I like to try to find 5-10 similar homes that sold within these parameters
(and expansions). Redfin has their special blend and that is good for maybe the first one or 2. They also have Date Sold, Highest, Lowest search filters. Experimant whith these and see if they help round out your comps.

 I seek: Solds: within last 3 months (up to 4 or 6 if I can't find enough); Similar square footage within 200 sf (or 20%); Same number of Bed and Bath (Yet an outlyer that shows one bedroom more selling at same price of similar 3bed in the area may be a point of negotiation): Same number of floors and similar style (look at the pictures or description).

 So, when I have 5-10 properties I go to View Summary. One thing I look for right away is the average now and if any of these houses clearly cross over a major street, or a canal, or railroad tracks and then try to eliminate those. I can use my back button in Redfin and go back twice to where I was first adding and subtracting comps. Then I can remove the suspected non-comparable.

It may happen that you remove the house or 2 located from across a road and in that area it didn't affect the average. Then maybe there's a larger area of similar homes. But, I like to play it safe. Pretty soon, I have a good idea of what properties might sell for in that area.

Next, if I can I may have a Real Estate Agent run some comps and usually they give me a large range and I have to sift a little to get an idea. Sometimes I'm right in the ballpark. Other times they see something like permitted square footage added on that raises the value.

Redfin shows part of MLS and is available in many but not all areas.

I think Zillow has a similar tool. And I like their quick birdseye view of a neighborhood. 
By the way, the general public will for good or bad, see Zillow first and it is good to know the area so you can talk intelligently. Drive the neighborhood look at from Google Earth or some site.

And a caveat that I learned the hard way: Wholesalers tend to overestimate the after repair value (ARV) and underestimate the repair costs or cost of repair estimate (CRE).

Often the lower ranges are going to be the cash wholesale properties. The higher are the retail value homes.

Hope that helps.

-Cory

PS. I recently had someone tell me I didn't know how to do comps. But when I ran the "lead" by my acuisitions partner...He came up with the same low number I originally had.

I stil need to find out more about construction materials and so, I try to compare similar roofs.

*somehow ... not: monthsow 

(How do we edit on BP?)

Appreciate the tips, J.Lamar! I came across a big time Wholesaler last year and this year was supposed to be brought his company, find leads, work a list of possible leads, and even leave notes on ugly houses, and knock on doors of NOD's for several of his team's partners. I got their phone ringing, and we had many potentials that somehow did not pan out. From April until now, I've worked 100's of hours. My financial gain was... Hold on... I want to have an accurate figure. Ah, here we go not including expenses like gas for the someone else's car, and notebooks, the total was $0. Oops, make that $0! Their company is rebranding and moving to IRA investing, and so some people, and positions were switched around. I had some good coaching a couple times. Like on a probate situation, I found. But, the money we all thought would be there...monthsow, never materialized. They did find out that I was very good at researching and finding some of their hard to locate names. I even had a deal finding partner who after a couple of months of no pay... Was gone. I thought eventually, some sort of money would come just for all the research we did. It now seems that their profit margin and discounts have increased, their period of time to turn a profit has shortened, their risk tolerance has narrowed, oh, and they are harder to reach. I continue to work my wholsale endeavors, but keep trying to birddog for them. Why? Because, I committed to them and myself, that I would. They are supposed to 1099 me if we ever partner on a deal together that closes. I just can't imagine when I finally contract birddogs, not paying them something for all the work they did, that I didn't have to. Even $50 to $100 a month would help keep the phone on and gas in the car until the deals are done...

Thoughts?? Yes, In case you were wondering, I have begun attending local REIA meetings and hanging around BiggerPockets recently.

And here's an aside but I see I have a couple typos in my REPLY and wish I could click some sort of edit button ... ... ... ... ... But I don't see one....

I just came across a property ad for an Owner Carry and several ways to become an owner were in it. I'm a wholesaler and lead generator in Phoenix and have spent 100's of hours trying to knock down a successful wholesale deal! UGH! A Mr. Gibbons, I think, was on here and suggested in my wholesaling thread that I have other ways to invest in real estate besides wholesaling. Some say to stay laser focused but the deals arent' falling my way and the birddogging isn't paying any bills, either! 

Anyway, I came across this add where I can own it, rent it, buy and sell or whatever, if I'd like to own it.  I don't know what the Owner would take as an all cash deal. I see he suggests scenarios where I put down $3000, and pay like $900 in rent and the down payment and 1/3 of the rent would apply to the pricipal. 

So, now I need to bone up on lease options, lease purchases, sandwich leases and all that non-wholesaling business.

Maybe, I could get an option to purchase and find an end lease purchase buyer

Somehow, having a construct where the Buyer pays me $4500 and the seller gets $3000 leaving me and my partner each $750 and if the rents will sustaing $1200/mo. the owner would take $900 use 1/3 toward principal, and of the $300 cashflow, my partner and I would receive $150 each. 

The next segment you may want to skip. It's more on wholesaling than creative financing but it's all Creative Real Estate Investing to me.

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I've been trying hard to focus and even had a wholesaling company that is turning to capital management ready to partner up with me as acquisition partners, if I found a lead that could be converted into a great deal. Somehow, they got real conservative on what they'd go after and I've been left hanging. Hello??? Anybody there??? Universe, are you trying to tell me something???

Anyway, I saw this great ad and then I saw this thread in my inbox. Uh, but I'm a lead generator and wholesaler....I haven't been looking this past year into lease options or having a rental....     

I've been warned by very good advisors not to try and learn every tactic before I start but to try to focus on one method or niche before moving to another .... that looks shiny...  where was I ?  

Oh, yeah, I was warned that trying to have a whole "toolbox" of investing techniques is usually a losing proposition.

Well, I've focused on wholesaling: Calling, emailing, bandit signs, knocking on doors, checking Craigslist, starting a YouTube Channel, setting up appointments, looking at properties, networking, having cards made, STUDYING, running "comps" checking data thru Redfin, Trulia, Zillow, and whoever said this stuff was easy...deserves a snowball straight to the back of the head... I sure I'm missing something... oh, the countless, reading, listening, coaching programs, and back to more wholesaling activities like, driving for dollars, NOD's-although that was more for lead generation for a company, knocking on doors... I even had one "deal" right away but it was with another wholesaler that had trouble understanding contracts or something... and severely underestimated the CRE although his ARV seemed close. And then I found out how a buyers' list can be so crucial somewhere along the wholesale business building. Oh, well, I got lots of good feedback, and learned where to go to record documents when you think something is fishy...

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So, now I'm more open to other methods of cracking open this nut of real estate investing, and maybe that's what the universe is trying to pound into me!!!

I had suggested in a lengthy email (with scenarios and examples) to one Wholesaler that maybe a flex- option would work with other wholesalers. If I have an option to purchase that is to expire in 15 days with terms allowing the the seller to continue to market the property while I either fund or find an end buyer, then with that option I could market my interest in the property to another and assign my option to them. JP Moses describes it best. I had to re- research some of it but some use an army of these flex options, or non- exclusive flex options for the wholesaler, and a different contract if done straight to the end buyer.

Anyway, one of those $3500 non-refundable wholesalers has not yet heard of this concept and would like to get together with me soon to discuss it! (This could be awesome.)

I tried a variation of this in Jan. I even recorded my receipt of option consideration as the Wholesaler started to become less and less logical and available... But, that's another story. I at least garnered many contacts from that exercise.

I tried birddogging such a lead after getting a little more info. Had an acquisition member of an Investing company check it out further. He did. If it had had enough equity he was planning to acquire it and I'd get some of the action. 

Still, I thought some had work arounds for these. Are flex-options used much in these arenas? My network of contacts is expanding and if I COULD hook in some equitable interest... I could market it to them.

Seeking Information:

Some of the other wholesalers have a $3500 non refundable deposit to contract with them.

Is there a simple work around to this?

I think I saw where someone put down a $10 deposit and a clause that the end buyer would take over the obligation as assigned or something.

Can someone walk us through this.

Lots of wholesalers are emailing me now with potentially good deals but the $3500 non-refund, is a bit of a hurdle. 

Why does the Amanda Keller link bring us here?

What was the result? How'd you find it?

Did you use "Bashan Mann and/ or assigns"?

Did you use an Option to Purchase. or straight Purchase Agreement? 

Was it through another wholesaler?

etc.

Wishing you Success!