Do Not Be Conservative with Your ARV!

Transactional real estate engineers must never be conservative
with their ARV. What is ARV? ARV stands for
“after repaired value.” It means the potential
value of a property and not the value as-is. It is determined by
referencing nearby comps in a similar condition that have
recently sold. If your ARV is too conservative, you will lack a
margin to make a profit.


In this episode, learn about ARVs, what we look at when doing
comps, and how to find comps in the boonies. Discover how to
approach a seller when they ask for 20% down for a $30k house
that needs work or sellers asking way over market value. Gain
skills to follow up with incoming leads. Learn when you should
get the authorization of release information in a subject-to.


Listen to a client’s bread-and-butter deal, and the attitude
investors should have when talking to sellers about the first
three mortgage payments.


Mentioned Resources:


Zillow

Propstream

Realtor

Real Estate ABC

CallRail



In this episode we covered:


00:00:00 – Start-up and market update

00:03:32 – When to get the authorization of release
information in a subject-to

00:04:36 – About a seller asking for $7000k down for a $30k
house that needs work

00:13:01 – How to handle a deal with a big cash flow, nothing
down, but seller is asking over market value

00:20:10 – What we are trying to find with the ARV, what we
look at when doing comps, and reason for a high difference in
comps

00:25:43 – How to approach a seller willing to do terms with
a 20% down and when to start talking about terms with seller

00:29:46 – How to approach a seller that is willing to sell
for what they owe, nothing down, and with a tenant in paying $600
rent when comps are $900 a month

00:33:51 – About a seller who owes $350 for a couple of
acres; three plots are going to be sold separately from another
plot that has a 4-bed 4-bath home, two apartments, a shop, and a
pool on it. Asking $180 cash to buy a condo

00:37:15 – How to approach a motivated seller and go ahead
with the deal when it is difficult to find out the property’s
address to know it’s value

00:44:21 – Recommended application to use for sellers to call
and call not go directly to private phone

00:44:55 – How to find comps in the boonies, what to do when
it is difficult finding pictures, and how to approach a seller
open to terms but numbers are high with a house that needs work
and has tenants living in it

00:52:35 – Recommended process to follow up leads

00:53:26 – About a client’s bread-and-butter deal and about
the attitude one should have to approach sellers when talking
about the first three mortgage payments

01:00:50 – Wrap-up



About Blair:


Blair is the founder and creator of Dealbot, a motivated seller
lead generation company. He has managed nearly $2mm in marketing
spend and generated over 100,000 motivated seller leads. He also
buys and sells houses himself in the Winston-Salem and Charlotte,
NC markets. In the past year, he has acquired nearly $3mm in cash
flowing rental properties with zero money out of his pocket.


Multimedia:


Youtube

Apple Podcasts

Google Play

Facebook



Thank you for listening!