Are you thinking of getting into real estate investing? You have a few friends and acquaintances who are making a splash selling houses wholesale or flipping houses… …and naturally, you want a slice of the pie. Good! It’s never South Africa WhatsApp Number too late to take advantage of real estate (people will always need a place to live, after all). But there is a problem… … a giant prison cell, a mindset obstacle, a confusing kind of problem. How the hell do you know how much a house is worth? You have no experience in the world of real estate, so how are you going to know how much you should buy real estate? How do you know you’re actually going to be able to make a profit?
Imagine you find a distressed property that you want to buy and flip (as a wholesaler or a home seller). Assuming the seller is as motivated as you need them to be and is interested in selling their home to you, it’s time to see if this transaction will be profitable for you. The first thing you need to do is find the after repair value of the home. What does it mean? It’s exactly what it sounds like: roughly how much the house will be worth once it’s repaired to normal market expectations. Note: If you want to repair and reverse the houses, this is an important nuance. You need to understand the market and the type of home quality buyers in the market expect.
Ask a Realtor
This will save you from over-fixing the house and cutting back on what could be a big profit. If you are going to repair and remodel homes, then ARVs are important for obvious reasons. It will tell you how much you can expect to sell the house for once you’ve finished fixing it – which, in turn, reveals how much you should buy it and how much you can spend on repairs. If you are a wholesaler, the ARV is important for the same reason above and for an additional reason: namely, that the investors you are flipping the house to will generally want to know the ARV of the house you are trying to sell to them. . – most will want to see all comps you have performed on the property.