I already know where to find the buyers/cash investors. How do i calculate the value of a property and once known,how do i determine a general figure or a certain percentage for repairs in order to assign to an investor. Please help,thank you

First, how much do you know about determining the value of a property? How much do you know just based on your research?

Hey Frantz,

Here’s how you determine value, I’ve learned this buy doing over 100 fix & flips and I met every appraiser out at each property and ask them the same question you are asking here.

Formula: 3 sold comparable with in the last 90 days that are within 200-300 sqft and are within a 1 mile radius. Look first at subdivision, then 1/4 mile, then 1/2 mile than full mile.

The properties must be LIKE property, similar lot size, pool or no pool, two story or one story. you get the idea. Now to determine ARV look at the pictures at all the comps you found, you’ll looking for renovated properties that fit in the above criteria. To get this data you need access to the MLS or a Realtor.

Now for repairs: You of course have to look at the property but if you see it’s in rough shape take the square footage times the $10 to $15 a foot. Example: 2,000 Sqft x $10 = $20,000 in repairs. This is a simple quick and dirty.

Good Luck,

Cheers

Sean

Thank you Sean,thank you so much.If i may ask you one more question. I also looked at different sites and they will give sold properties as in what your appraisers mention,but i will also see, MEDIAN PRICE/VALUE ,the amount,can i use that median value from sites like realquest to have a ball figure of how much a property will worth,putting both the appraisers knowledge and median. Thank you

I would suggest you see this web link about median value: http://en.wikipedia.org/wiki/Real_estate_pricing.

I don’t recommend using median value, because it measures all the different markets with the same home, and it doesn’t stick to what is in your area. Your best bet is to go with a realtor, and have them pull up a cma on the property. Then, come up with a contracted price, blast it to the buyers and get it sold. :deal

How To Find:

ARV-3 solid sold comps from a reputable Realtor. Add the 3 or more comps divide by the number of comps and you’ll get the ARV.

Repair Estimates-I feel nothing is better to estimate repairs then an actual general contractor. In fact you can get free estimates from any general contractor in your area. For return of the free estimates drum up some business for the contractor by referring him to your end buyers.