The rise of virtual events and work-from-home set-up has become prevalent as the international community faces the COVID-19 pandemic. The spike in demand for technology, gadgets and smartphones continues to increase since most businesses are shifting to virtual offices.
As a real estate investor, deal-finding is one of the major tasks that you need to accomplish. Since real-estate investing is a numbers game, it is advisable to start with a large number of potential leads to have more chances of getting the best deals. In today’s situation where mobility is regulated, here is how you can maximize your deal-finding even while staying at home:
No. 1: Analyze deals
Analyzing deals is important because it is necessary to boost your sales and reduce outgoing cash. Through analyzing deals, you will be able to assess if the subject property has a good potential investment and you can estimate if a particular transaction can give you a good return.
Here are some tips that may help you in analyzing deals:
Comps are necessary to evaluate whether your offer is competitive in the market or not. In making a deal, your offer must be realistic from the perspective of the buyer but must also give you an ideal return.
Calculate your Maximum Allowable Offer
In giving an offer, you must start with the least possible value because there will still be negotiations and adjustments before closing the deal. You may use this formula to get your Maximum Allowable Offer:
Maximum Allowable Offer (MAO) = 70% x ARV – Repairs
At Real Estate IQ, we have a deal analysis suite where you can use live MLS data to quickly and easily run your own CMA/comps anytime and anywhere! This tool includes:
Fast CMA Professional– You will get Unlimited CMAs for both residential and commercial properties; and our computer automation will also give you two ARVs for every property.
Deal Analyzer– Through the deal analyzer, you can easily calculate ROI (return on investment), cash-on-cash return, rental index, maintenance & holding costs, and your final profit for every single deal.
Repair estimator– Investors must understand and be able to quickly do rehab budgets before placing an offer. With this step-by-step guide, you will be able to create a probable repair budget for your subject house.
No. 2: Find deals
Finding deals is a task that you can accomplish better if you will expand your network and utilize every possible means to search for deals. As a general source of leads, you may search though listed properties or off-market leads. You may also search for relevant websites such as the Craigslist.
At Real Estate IQ, we have a deal-finding suite that can help you find and evaluate properties subject-to deal. Our online and offline research teams work daily on the top counties in Texas, Florida and Georgia. Our research teams know how and where to get the best and most relevant data, and how to interpret it. This tool includes the following package:
Off-market leads – Off-market leads will send you daily updated list of distressed and motivated sellers through various sources such as probate & heirship, pre-foreclosure, evictions, divorces, loan modifications, tax sales, appointment of substitute trustee, mechanics liens, hospital liens, HOA liens, delinquent taxes and code violations
You may also check our Premium Deal Finding Suite and receive our top-off market lists with the skip-tracing already done for you!
MLS deal finder – You can search listed properties and we can provide you real-time email notifications as soon as discounted houses hit the market. Speed is the key to winning deals and this technology will help you consistently beat your competition in locating the deals.
County-data finder – This tool allows you to access over 10 million records of searchable data. You can also create a targeted list for marketing to anyone who owns property. You may narrow your search by ownership, property type, geography, land, home features, and value. You can also create basic and advanced reports in a format that is organized for investors.
You may join the community portal and start building a strong relationship with experts in the field! You can always send your concerns anytime in our group and have an interactive communication with your co-investors. Feel free to read more investment articles here.