Creating Custom Offer Widgets and Functions
Guys, In this short tutorial video we outline how to set up your customer offer widgets so your analysis reports run smooth. Doing this will ensure your "soft passes" to the seller are on point. Which means you'll have a greater chance of your offer getting accepted. This process will also ensure that you apply the right "enter/exit strategy" on each deal.
REI Autocomp Tutorials: Entering Comparable Sales Data Manually From Outside Sources
Updating Characteristics With Data From A Realtor
From time to time you may get additional comparable sales data from another sources such as a licensed Realtor or Title Agent. Its easy to enter that data into REI Autocomp for even more accurate reports.
Randy - Creator Of REI Autocomp
How To Calculate The After Repair Value On Any Home Nationwide!
In the course of learning the real estate investing business it will become very clear to you that understanding basic values of properties in any given neighborhood is key. After all you will not be able to offer something viable to the seller that is likely to get accepted if you are just throwing numbers at the wall to see if one sticks.
One of these key values is called the "after repair value". It is essentially the answer to the question, " What will this home be worth after it is repaired. The way to find this value is to compare your subject property with 3-5 properties within a 1 mile radius that have been fully remodeled to today's standards.
Keep in mind their is a difference between getting a home "rent ready" or "livable" vs. completing a "renovation" and that the after repair value may likely include both of those scenarios in terms of "costs" in order to come up with a sound offer.
In this short training video Randy, the creator of REI Autocomp, shows you how he can quickly and accurately find the After Repair Value on any home nationwide!
When you are wanting to determine what a home is worth after it is repaired, you must compare that "subject property" to homes that are similar in terms of characteristics but that are fully remodeled.
Before we get into the comparison factors I think its important to note that all neighborhoods are unique in two respects.
#1 The Market Mix - The original builders could have varying floor plans, varying square footage's and varying stories however the overall neighborhood could also have varying home types such as Single Family Detached, Townhomes or some Multi-Family homes.
#2 Randomness - We can not control what neighborhoods homeowners/investors have decided to completely repair/renovate which means that all neighborhoods will have drastically varying degrees of condition especially as these neighborhoods get "older".
With that said here are the characteristics and data points you must "compare" in order properly analyze the ARV of a property.
In no particular order:
#5 Lot SqFt
#6 Age/Year Built
#7 Relative Distance
#8 Relative Sold Date
#9 Property Type
#11 Location - Near busy street/main road, power lines, canal, industrial buildings
So basically just find 3 properties that closely match your property that have already been "fixed up". Get the average of those 3 property and viola' - YOU HAVE THE "AFTER REPAIR VALUE".
- Don't let the age fool you of the "comps" some have been rehabbed.
- Try finding the "highest solds" first and checking their condition... Usually those are the fully fixed up houses.
- Try not to use Listings or Pending if you can... And if a Realtor sends you a jumbled mess of spreadsheets check to make sure they are "SOLDS" only as I have found that many Realtors are not very good at finding the Current Market Value let alone the After Repair Value.
Get your copy of REI Autocomp now!
The REI Autocomp Team
Real Estate Software Analysis Blog
Here you'll find out even more information about our software including Tutorials, Updates and New Releases.