by Marco Leone, The Equity Finders + HomeSmart
This month I want to talk about our SmartMap ARV Comping System and how important a tool like this is to your fix & flip and/or rental business.
First of all, it really doesn’t matter where you’re finding your deals, because our ARV Comping System will comp any on or off-market residential property. That’s right. It could be a property listed on the MLS, a wholesale property, a FSBO, or any other off-market property. What is super important though is accurately determining if the property will generate the profit goal you’re trying to achieve.
You already know that on a fix and flip, your profits are typically made on the buying side of the equation. Your expected profit can be fairly predetermined by first knowing the properties’ ARV (After Repair Value). This is the price you can sell a property for on the retail market. From that number, you can then deduct things like repair costs, loan payments, carrying costs, commissions, etc. If you also factor in what your profit goal is for that property, you can then determine what the max price is you should be willing to pay.
Now if you’re an investor focusing more on rental properties, the equation is going to look much different. For one thing, it’s not imperative that you even buy a “fixer” property. Most buy and hold investors are more focused on cash flow rather than built in equity. Don’t get me wrong. If you can acquire a property that offers both, well then good for you, because that’s a great deal.
When purchasing rental properties, you can either buy with a renter already in place, or you can buy it vacant and acquire your own renter. The beauty of long-term rentals is that they offer a double benefit. In addition to offering cash flow on a monthly basis, you’ll also benefit from the increased value of the property through appreciation over time.
So, whether you’re buying properties to fix & flip, or your buying long term rentals, here’s the million dollar question. How are you comping your potential deal properties? Zillow? The MLS? The reality is, both of these systems can provide the information you need, if you’re willing to spend some time pulling data, sifting and sorting, and then manipulating the data to analyze it. What if I could show you a way to have all of that done for you, automatically? What if you spent less time comping properties and more time submitting offers and closing deals?
Well welcome to the SmartMap ARV Comping System!
Our system gives you an unfair advantage by providing you with accurate, up-to-date data quickly and automatically. What sort of data? The short answer is everything you need to determine whether a specific property will be a profitable flip or rental property. You’ll be able to weed out the deal properties from the duds long before you step foot outside the door to visit the property.
Having the ability to view each and every low to high comparable within a mile of your subject property is just the beginning. The SmartMap ARV Comping System shows you everything, including currently listed, non-qualifying and distressed properties from the MLS. Quick reference links provide easy access to verify the home or lot square footage, view tax details, deed documents and other pertinent information.
What about adjusted values for pools, carports and garages? It’s all there. Rental data? Absolutely! Smart Map scours the MLS (Multiple Listing Service) all day, every day to provide you with the most accurate, up to the minute data. Need to run your own comps for an off-market property? You can do that with just a few clicks. In addition, the “on demand” investor reports and CMAs are super helpful as well.
As you can see, the SmartMap ARV Comping System really does it all for you. So, stop sitting on the sidelines and get in the game!
Try our ARV and rental comping system for 10 days, absolutely free. Go to www.SmartMapComps.com to get started. I promise, you’ll love it.
Looking for your next fix & flip or rental property? Go to www.TheEquityFinders.com/get-started/ and tell us what you’re looking for.
We’re here to help you find the best deals.