How to Analyze a Real Estate Deal with Data | PropStream

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Transcription

Ariel Herrera 0:00

Hey everyone Today we have our special guests back for it in order to give us an overview of how we can analyze deals within prop stream. Welcome Burton.

Burton Alicando 0:09

Thanks for having me. And yes, I'm excited today, I think this is probably a very, very commonly brought up topic is, you know, how do I analyze a property? You know, we've we've built leads, we've made contact, but now they're calling us back to analyze now to sell their properties, what do we do, and I hope today's session can kind of cover that whole aspect.

Ariel Herrera 0:30

Perfect, let's just dive right into it.

Unknown Speaker 0:33

Alright, so let's get my screen shared over to you guys. And the first thing I just want to let you know, stay the obvious is that, you know, when a phone call rings, and this is a homeowner calling you, the reality of it is you're not going to go from a phone call to picking up that phone call to them making an offer right that in there, right? That's just not how it works. If it did great, I mean, I just don't think that's the reality. The truth is there's you know, there's a relationship that needs to be built, right. So when someone calls you for the first time a homeowner calls you motivated homeowner, there's a lot of questions, a lot of things going on in that conversation. And we hope that our data can help you with that. So let me explain what I mean. So let's say now I'm in Southern California. So let's say I'm in Southern California, and I get a phone call. And so the first thing I need to do is I need to pull up that property's details. So if it's a property local to me, I can zoom in on the map, and click on that parcel. And then go immediately into the details of the property right, so I can again, click on a parcel to get a brief description of the property. And then go into the details by hitting the Details button or the other way we can pull up the property is by typing in the address and this is probably the route most of us are going to take right we get that phone call. Hey, thanks for giving us a call back, what's your address, we're going to type in the address. So the difference when we type in an address is when you click on a parcel just give you this small box when you search the address, we take this box, and we move it on the right hand side all but the graph so the graph won't be there. But we will move it here on the right hand side gives us room on the map so that we can show you the nearby listings right here on the right side, the neighbors, the MLS listings, the pre foreclosures. So not only are we giving you the subject properties information, we're gonna give you the local information as well. We're also going to give you the the zip codes information as well we'll take that zip code that you search that property, the properties of code and give you the local environments listing. So for your wholesaler, this would be good because it can show you how many cash buyers are in this zip code or any other potential motivated sellers that are out there as well. And finally, but certainly not least, at the very bottom, these statistics, right? So get a phone call. Hey, thanks for calling me, what's your address, I'm typing out the address. You know, as I said, Give me a second while you pull up your information. I'm viewing all of this, to see if maybe this property's worth my time or not. So from whether it has enough cash buyers in the neighborhood to the statistics, you know, are there positive or negative price changes are there positive or negative rent changes. So now I can determine whether we need to fix and flip the property buy and hold it or maybe encourage our buyer Hey, maybe you should hold on to this property and rent it out. Instead of fixing and flipping it. We'll be able to see the days on market on average. So when our homeowner, our buyer says, Hey, you know that property you have on contract? How fast do you think it's gonna sell, they can say, Well, in this market, four bedroom properties are selling about 91 days on average, we can see the average monthly rent and so forth. So again, we're not getting the details. This is simply just searching the address and what happens when you search an address versus zooming in and clicking on a parcel. Okay, so again, searching the address gives you just a little bit more information. And that's what most of us are probably gonna end up doing searching by address. Now regardless, if you click on a parcel search by address, you need to get to the details of the property and that's by clicking on details here on the right hand side or again, click on the parcel and going into the details. So when we go into the details, this is our property details page. So what's in the property details page? A lot of information here so let's just break down what's in the property details page. Right before we go over it. Let's just talk about what we're giving you. So property has been around for 15 years and over the 15 years we've been just researching and talking to our users and what they're doing and this is what we come to realize when that phone calls when when that homeowner calls you and you pick up that phone call There are four pieces of information we realize you really want. And those four pieces of information are the following. First is property details. Because in the past without property details, we had asked more questions, right? So let's assume you know, we didn't have internet, we didn't have any technology. You know, someone called us to sell their house. Well, we probably had a checklist of all the questions, we need to ask them about the property, right, your bill beds, bathroom building type, roof type, etc, right? Well, today, you don't need to do that, because we're getting that information from the county. So first information that we're going to give us property information. The second piece of information we're going to hand over to you is the financial information of the homeowner, like if there's a mortgage or more than one mortgage, if there's an equity on the property. And then the third piece of information we're going to give you is the situational data like is the property on market is it bought was a bought in cash, is it in pre foreclosure doesn't own or have multiple properties? Is it vacant? So property data, so you can talk about the property, financial data, so you can determine whether you need to pay off a loan or not. And if this property has enough equity or not, third, situational data other than the property and financial information, what other information is going on on this property that could potentially mean more motivation, or more headaches along the way, depending on you know what the situation is. And the fourth and final thing that you need is the ability to look at local sells. The reason for that is because you're going to need to make an offer on that property. And you don't want to just randomly give them a price, you're going to want to make an offer based on the market value of that property. Right? So if you're trying to get a property at half price, if you're trying to get a property at 75% price, well what's the 100% price, right? What are property selling for that are similar to that property, you just search. And the only way to do that is running comps. So all of that details, financial stuff, situational stuff. And the ability to run comps is all on this one page. This is our property details page. And remember, in order to get here, you have to either click on the parcel, go into the details, or search the address and go into the details. So let's be get homeowner calls you, they give you the address, you pulled the details. What are we looking at now? Well, the first thing that's going to happen is you're going to be able to get to see the dashboard. So here in the dashboard is a lot of information we're giving to you from all different sources. First thing we're going to give you in the dashboard is any property photos. So there are some photos of this property. And we can see the property photos.

Unknown Speaker 7:48

And the only way we're able to get this, these images are because this property was listed on the market. Now if a property is not listed on the market, let's say perhaps the neighbor right over here, number one, when we go into the details, there are no photos. So not every property is going to have photos for the ones that have been listed recently or are listed right now. When you go into the details, the photos are there for you to go through. Now if you don't want the photos, you can click on map view here at the bottom right below all the characteristics. And that will give you the satellite view, Google Maps, and you can zoom out and zoom in. And you can even drop the person on the map if it's this is a gated community. So it looks like they weren't able to go in there. But you guys have access to street level view as well. Right? You can go back to the gallery, if needed. So first thing, we can show you the photos and maybe you want to talk about the neighbor, maybe you want to talk about the neighborhood when you're talking to the homeowner. After that we're going to give you the property characteristics. So again in the past, hey, how many beds and bathrooms do you have? What's the year built on your property today? Hey, my records indicate your property is almost 20 years old, right? When's the last time you did the roof. So a lot of important stuff that you're 30 years old, actually a lot of important stuff that you can get. So instead of asking about the year bill, you now know what the your build is. And you can imply a different question, the question that's going to answer how the condition of the roof is or how the condition of the landscaping is or the plumbing or whatever it may be, to the right, the property summary property type, whether it's on market, whether it's in pre foreclosure, if it's in an HOA, the owner type, you know, occupancy how long the owners lived in this house, how it was purchased and what county it's in. To the right of that just a few calculations we're going to provide you like our calculation of estimated value and last year's estimated value. We'll show you how our calculations have trended over the last five years. But the reality is we don't want you to use our calculation. So we're going to go out there and give you the local sales. So we You identified 50 properties within the half a mile around this property that sold. Now we didn't filter these 50 properties, but we did average their sell price out. And we are seeing an average in this market of 1.29. Now again, this is just how many have sold in the last year within a half mile, if you want more, increase the time increase your distance. And this is an unfiltered sell amount. We didn't go through the 50. And look for the four bedrooms or the two bedrooms. This is a collection of everybody's sell price averaged out. To me, the most important is this. Out of the 50 properties. They're averaging about two months or less when they sell

Unknown Speaker 10:39

to the right mortgage and debt summary. So we're showing you if there's an open mortgage, how much they have on that open mortgage, and again, we can show you up to four positions. And then any liens and Lena mountains that they have on that property. And finally, the opportunity, what the estimated equity is that we've been able to calculate the monthly Brent and gross yield. Now if you're wondering how did we calculate the estimated equity, estimated value minus our estimated mortgage balance we've calculated to give you that estimated equity, these numbers are never going to be 100%. I'll give you an example. mortgage balance could be wrong because someone missed the payment or made extra payments. So because that mortgage balance is wrong, that equity is going to be wrong. So don't ever think our numbers are 100%, I'll be the first to tell you it's not because there are things that our data can't capture, like any external anomalies, again, someone making payments or missing on payments. So the final thing that we're going to give you is the last and prior sell. So the public record indicated this property was recorded on the at the county and then after it was recorded the county, the agent went on the MLS and updated their records. So the first thing that you get when you pull up a property is this dashboard. And the reason is so that you can ask quick questions like about the property type about that mortgage, how's that mortgage treating yet, you know, and take a look at the equity is the equity high enough for you to work with it. So that's the first thing we're going to give you. And if you need way more information than what we're providing you here, that's what these tabs down below are indicating. So the first tab you're going to see is the property details, owner's name and second owner's name. So if you're talking to isagani here, you might want to make sure that Teresita is on the line, because there's a second owner, you might want to make sure both of them are on the line when you make your offer property characteristics building size, land and location information, like knowing the school district, maybe asking if their kids go to that school district could help build a relationship. legal description, tax information, hoa information and last sell and non arm's length past sell. So any transfers or any regular sells will also be recorded here.

Unknown Speaker 12:55

Now to the right of property details is any situational data. So in this case, this property was on the market a few months ago, it sold and that's where we got those photos from that we also got the agents description, utility information listing history as well. Now again, to the right of property details is situational data. So if a property is let's say, going through pre foreclosure, like one of these 14, when we click on the property, to the right of that, you'll see a pre foreclosure tab. Oh, there's also an MLS tab. So it's going through through to situational circumstances in pre foreclosure also on market. If you click on a lien, same thing applies when you go into the details. There's the lien tab. Okay, so that's situational data, like we talked about. So when I go into a property, not only do I know about the homeowner, but I know about what's been happening on that property. Now to the right is comparables, we'll skip that for just a second. But to the right of that we'll have tax information for you. Other situational data such as, hey, they own more than one property. So if they're not interested in selling this house, they might be interested in selling another property of theirs. The mortgage and transaction history. So here at the top will show you any open mortgages, the lender, the recording date, the amount, and down below the transaction history. And finally, documents and reports. So as I'm talking to this homeowner, and I'm asking questions, and I'm trying to make them feel comfortable, make them feel that I am the person that's going to help them out, right. All of that's gonna need to be done by educating them and I can educate them using the data, I can use the data to help build my credit because they think I'm a stranger. So you know, once I make them feel comfortable, and I start talking about the year bill and the square footage and how they've lived there for eight months, they're gonna be like, Okay, this person is actually a real investor. And that's the point. We don't want you to just be someone random on the street, right? So we want you to use our data to ask the right questions. To build the right or to build that relationship with them, and then hopefully get them in the right position to make that offer, right got to make them comfortable to make that offer. Now, before we make that offer, essentially run our comps, there are a few tools that we provide you before you do that. So the first tool is here at the top the tags and status. So as you're talking to the homeowner, things might be said things might be scheduled and things might be done. First thing is status. so here we can say we need to follow up, we left a message we made an offer, offer accepted, scheduled appointment, perhaps, right. So as you're talking, you can put this property under a status, then you can tag that property. So when you're talking to the homeowner, he said, Yeah, you know, we have some leaking pipes right now the Water is leaking, we can't find out why we have some fire damage out in the back. And our lawn has been growing for quite some time. Oh, well, we buried our dog in the back, by the way too. Well, that's not a tag. But it could be, I can hit edit, and add my own tag. So buried dog in back, and then hit Add. And now I have a very dog in that tag. So you can hit edit and add your own tags and even rename a tag or even delete it. Maybe you don't want that. So remove it. And finally notes right. So let's say you're talking to the homeowner and you hear you know, two dogs barking in the background, write that down. Or maybe you hear the Laker game playing off in the background. And you know, the family's cheering the Lakers on, you might want to write that down, right. So the notes are just extra space for you to write things that you're catching during the conversation. So status tags regarding the property and the notes regarding your conversation. And then last, but certainly not least, the ability to add or tag a team member. So once you're done talking, maybe it needs to go to somebody else on your team. And so you can assign it to a team member here on the right side. Now when you hit done and apply, the system will have you saved the property. So I'm not going to save this property. But when you hit apply, it's going to say you need to save this property. So please save that property. But when you do, here's what your notes will look like. Now, let's do a before and after. So this is a property before notes. And then here's a property with notes.

Unknown Speaker 17:22

When you go into the details, the notes are dead center. So now when I call back this Sunday oh so hey, Hoeven. Thank you so much. Did you catch that the Atlanta Falcons game by chance are right, what are the Tampa Bay Buccaneers game whatever it is Tom Brady's Yeah, Tampa Bay now. So we can use that to again, pick up where we last left off, and then go from there. So the first thing that we're going to give you as a tool set to help during the conversation is tags and status. Now let's say you just love this property, you can't stop thinking about it. And you want to start preparing your buyers about this property right. So maybe you've got it on contract. But now you gotta explain all of this to your buyers. How do I explain all this information to my buyers, I can either create my own little marketing thing, or I can just hit print hitting the print button, you do have to save the property. So let's go ahead and do that now. And remember, when you save a property, which is this fourth button here, we're going to send all save properties into the my Properties page. So in case you ever you know where to sign off or hit clear all by accident, as long as you've saved the property, you can go into my properties, and it's going to be in your my properties folder. And then you can even click on it and do it from here. But if you press one button like we did a few moments ago, you'll first need to save the property, but at the very bottom will give you the CMA report. So the comparative market analysis report, it gives you all of our data pretty much on this PDF file. So any images of the property characteristics listing history, owner history, lien history, mortgage history, transfer information, it shows them the local comps in the area so they can run their own comps if they wanted to. And then any photos of that property and statistics at the very end. So all of that just by clicking the print button again How do I explain this to my buyers and my business partner, you don't just hit the print button handed over to them right? And then add your notes on top of it. analysis. So what if I am the investor? What if I am the one doing the fixin flip? Or what if I want to rent out this property for 15 years? The analysis wizard is designed for you. So here you have to run your own numbers. We're not doing anything for you. We're just giving you a calculator. So in the first tab, that's the purchase tab. How are you buying this house? What are your improvements? When you hit the next at the very bottom, it takes you to the next tab the mortgage tab, we want to know the type of mortgage you're using Is it an interest only combination accelerated what's your mortgage information? When you hit Next we want to know your closing costs. information for that mortgage.

Unknown Speaker 20:01

And then when you hit Next are now in the income page, well, how much are you renting out this property for? If you're not renting it out, you can get zero and zero this out and then hit next and go to the expenses, how much is coming out of your pocket for owning this property every month. So we want to know how you're buying it and how you're rehabbing it, the type of mortgage you're using your closing costs, how much you're renting this property out for how much is coming out of your pocket, just owning this property like taxes, utilities, etc, landscaping, perhaps. And then finally, next, we'll take you to the sell page, how are you selling this property? or selling it in six months? So you sunk in a year? Are you selling it? Or are you renting it out for 15 years. So in this area, this is just a, you're a universal analysis wizard, you can find one online, but we decided to put one in here for you. Not only do we decide to put it in here for you, but after you run your analysis, you can go to the last tab finish, and we can generate a report for you. Now prior to generate the report, here, we can show you what your returns are going to look like and improve the information based on the information that you're punching in. So that's the analysis wizard. And the last thing that I think can be very useful is during your conversation, and this might be an out of county property or even an out of state property, during your conversation you might be talking about the condition of the property might talk to you about they forgot to do the bathroom remodel, or they didn't have enough funds to do it, or they need to do the painting or the roof. That's what the rehab calculator is for. So as I'm talking to Isaiah Ghani and to receita about their mortgage about, you know, the hardship of owning multiple properties, you know, making them comfortable, and then eventually, you know, is gonna go look, if you're gonna buy this house, one thing I need to warn you about burden is that we forgot to do the bathroom down below, like we started the project, but COVID hit boom, we never got to complete the project, we have no funds anymore. So you're telling me you have a gutted bathroom downstairs? That's right, no problem, I can go into the rehab calculator. Again, I'm not a contractor. So when I click on the rehab calculator over here, and you have to have the property saved first and foremost, but by clicking on that will send you to blue hammer, which is a third party company we work with. And we're going to give them the address so that they can look at invoices in that zip code. So when you go to blue hammer, you can start a new project or view one you already did. In this case, I haven't done one. So I'm gonna start a new project and call it whatever I want to call it. So just rename it as you see fit. But when you hit Let's go, you can do one of two things. If you know what you're doing. If you know I need this, I need that I need that to complete this project that's searching by individual actions. So you can choose what category and what items you need in that category. Again, you have to know what you're doing. If you don't know what you're doing, then you probably want to use search by popular projects. So this right here is like a Elkhart type of thing, right? So when the homeowner says Look, I didn't need the bathroom, I need to do a complete remodel. Great. I can go into blue hammer, click on popular projects, called bathrooms when I hit next, here are the things that most rehabbers do when they pick up a property like accessories, a complete remodel toilets, tubs, vanities up complete remodel is what we discussed. So when I hit next, what type of complete remodel a bathroom only tub and shower like what's the layout? Well, this one's a natural stone tile that we're looking to get. And it's just a shower only bathroom. Okay. Now what type of material you want to use so if this is like Beverly Hills, you probably want designer stuff. If this is a neighborhood that's not you know, high end, then you probably want like better stuff. And if you're looking to save a lot of money, then here economy right. But for today we'll use the better stuff. So we pick the project, we pick the category, the subcategory, right, we pick the layout, we pick the quality, now we need to know where the repairs are being made was it being made in the entire house, the kitchen, no, just the bathroom. And finally, when we hit Add to estimate, boom hammer takes this data and spits you an average a retail average it says okay look based on that zip code based on the line items or the project that you just selected. Here's what the average of all the zip codes are all the invoices we've just looked at in that zip code. So it's telling me this type of project in Orange County, California we'll take about $19,000 retail average, if I did it myself thought all the parts and pieces at Lowe's Home Depot, it'll be about 8900 the number of line items 47. What this means is how many actual items are on that project. If you want to see those line items, you can hit prop project details and see all those line items.

Unknown Speaker 24:55

They can even be edited if you want so it's like you don't you know have a toilet alright. Maybe the toy was already removed, well then hit zero there. And now the values have changed. You can even punch in your own area measurements, if you actually went to the property and pulled out your your tape measure or actually got your sizing, you can hit area measurements and let us know you know, it's a flat ceiling, and the short walls eight feet and a half by eight feet and a half or whatever it is. So by applying this information, it's going to allow us to calculate the local average retail cost for your repair. And then finally, after you see your summary and the details that can be adjusted project summary or project report gives you a printable format. So now I can hit print estimate. So all of that, as we're talking to the homeowner, we haven't even made an offer yet, okay, because because comping isn't just pick up the phone and just throw out an offer, right? Well, we have to know the person on the other line. So as I'm talking to somebody, I have the data, I have the financial stuff, I have the ability to run comps, if they tell me about things that need to be done on their property, I'm sorry, rehab, but now they're comfortable. Like Okay, now that you're familiar with our property Burton, how much are you offering? So before I go and say anything, I'm going to go into the comparables in nearby listings, and the whole bottom half is going to change. Now, the first four boxes are your comparables. The others are the nearby listing. So those aren't so important. Like if you're looking for another motivated seller in the area, then yes, great. If you're looking to just get a value of a property, it's these first four boxes. So let's ignore these nearby listings. And let's just focus on the first four. What are they? So comparables are properties that sold and were recorded. That's it sold and recorded. Now in comparables, you're going to have access to county records, aka public records. So any real estate transaction, though public records are recorded. And that's why you have these weird colors in your results like the purple, that's a family transfer. That brown one, someone built a house and sold it, that green one, that's a cash transaction, any transaction, the county will report it and so that that's the database here. MLS is if an agent sold the property. So these are all the properties where an agent sold, and then both puts them side by side. Now flip comps, this is going to show you houses that someone bought and then sold in less than two years, right. So not just someone buying house, but someone buying it and selling it in less than two years. And here's what I like about this list. Not only just showing you that behavior, but it shows me the address, the property characteristics, the purchase date and purchase amount, so how much this investor paid for that property. And then the flip date and flip amount. So in this example, an address was bought for $1.1 million. And then about a year later sold for 1.2 million $160,000 profit on that sale. Right? Now, nobody just does that, right? Don't just buy a house and sell it in essence for years, certain type of audience does that. And that's why we call it the flip cops, neighbors. So maybe you're in a gated community like this property isn't. So let's look at our local neighbors information. And then cash buyers. So unlike flip comps, this is just going to show you who's buying properties in cash, we're not gonna show you whether they're flipping them or not. This is just cash transactions. So these are your comparables, feel free to use any one to get a value in the property. But to be frank with you, everybody uses comparables. And here's what they do. So now that we've made the homeowner comfortable, and we've identified that there's a mortgage that needs to be paid off, we've identified the motivation, maybe they're just tired of owning more than three property more than one property, and they just want to get rid of one of them just happens to be the one. Right, so we talked to the homeowners, we know that they have a mortgage, we know they're motivated. Now we got to run comps. So in our comparables, the first one is the most sought after category, the user will need to decide county MLS or both records. So we'll use both for example. And then down below are filters because we're not doing the comp for you, you need to do the comp, right? So copying means finding comparables finding similar properties and these filters are going to help you with that. So we go back a year. Now if you don't think a year is you think a year is too long. Feel free to move your date for like we're already in October for 2020. So finish my one. So yeah, here's almost over. But if we wanted to go forward, and let's say we want to start our search back in perhaps April, go back six months. then here are the properties that sold the last six months. Now we're going to show you the two bedrooms, three bedrooms, five bedrooms, right? That's not what we're looking for. We're looking for something similar to our subject property here which is a four three so I can say I need Before, I need a three bedroom minimum,

Unknown Speaker 30:03

your built square footage, what type of MLS status, what type of public record, when it comes to public records, here's what I would advise, stick with finance, finance means that the bank approved that 30 year loan. And that's not easily done anymore, right? banks have to really, really approve it. So stick with finance, if you're looking for rehab houses, you want to see anybody buying more than one property, include that or exclude that. And you want to go half a mile or half a mile too much. Because you know, this is a dense neighborhood, maybe you want to do a quarter mile instead, or maybe four Oh, the mile, or point three five of a mile, we'll let you decide that or you can go two miles if you need to. And last, but certainly not least, property class and property type. So if you're running comps on the mobile home, or you're running comps on the condominium, let us know, in this case, it's a residential, single family property. Now, here are your remaining results, your filtered results. Now we're not done yet. Now, we need to ask the question, why? Why did this address sandalwood? Which is just north of our subject property? Why did that sell for $1.4 million this year? And we can go to the right and compare Oh, well as more bathrooms, um, and it has a bigger lot size. So based on that, do you think our house is gonna sell for 1.4 million or more? No. Using this cup, I now know the threshold I know, okay, well, our house is probably gonna sell for less than 1.4 million. Right. So the idea with comping is to find subject properties that are similar, same similar characters, same features and ask why. So here's a few other one. Here's one right here a four 330 100 800 square footage, we can take a look at that. So here's one last thing I want to share with you. On top of asking why, hey, why did this house sell for 1.4 million? Some of them are going to have photos, and I encourage you to click on that. Because now you can determine Okay, that $1.4 million? Well, there's a pool that's filled, the house has been cleaned up and rehab, it looks like they've done the kitchen, the bathroom, etc, etc. Right? So the goal is not to just throw out an offer a random one, because that could piss someone off. The idea is to negotiate right, so you know, the homeowners house, again, missing bathroom. So the homeowner says, well, Burton, I want 1.44 2 million for my house. I could say Well, Mr. homeowner, I love to give you that. But there's a house off sandalwood that sold for $1.4 million. And based on the photos, it's it's an you know, attack, the bathroom is done, they have a pool, etc. yours isn't there. Yours is about 70% and completed. That's why I'm offering you 70% of $1.4 million. Now it's not that easy, right? Because the homeowner is probably not going to be convinced with one comp. So that's why you want to choose more than one comp? Like how can a five three, something bigger? Sell for less than something smaller for three, five? Right? Let's take a look. And as you can see, it doesn't look so all right, like the floor looks really old. They probably didn't do the flooring, probably the same flooring from when it was built back in 1979. Right? cabinets are still from that age, right? so unique, not really fully updated. So granted, that's why they didn't get a higher price. But this is good. Because if the homeowner says Well, I want 1.42. And I say well, I can't give you that because there's a house that sold for 1.4 that looks better than yours. Next thing the homeowner is gonna say well, I won't take anything lower than 1.3. And then I can say, Well, unfortunately, I can't give you 1.3 because there's a house that sold for 1.2. And that house, I mean it looks great, right? And maybe old that it definitely looks better than the house that we're working with right now your house. So, comping is not about finding a perfect number. It's about the art of negotiating. And here are two examples I can use when negotiating with the homeowner Now again, you probably want to use more than one, right? Here's one that sold for 930. Whoa, what happened here? Let's take a look at the photo. Okay, this house was in really, really all that done, Jorge, like, you can tell he really didn't have great things. But that house could look better than your subject property.

Unknown Speaker 34:58

Let's use that. So when the home Under says, Look, I won't take anything lower than million dollars, I can say, well, there's a house that sold for 930. And it looks better than your property. Right? So now I'm able to use data use facts, to lower that price without offending anybody. Now, I don't want to offer them too low that now I can't pay off their mortgage. Right? But now I have this perfect like range, I can offer them like 750 up to maybe 930. Right? But we're gonna play fair. So we're gonna take these three comps, and it gives us a new average, right? So based on those three prices, here's your average of the three. And then I can take my calculator, right, maybe pull out that calculator, and I know, the, you know, what most of us will do is that 70% rule an average so we can do you know, $1.1 million. And then multiply that by your 70%. Right? There we go. And then subtract your rehab and then start making your offer. But again, comping is not about finding a perfect numbers, how can I negotiate I'm going to offer them, obviously by the house, not at full price, they're not going to be happy, they're going to want full price. So how do I use data to reduce that price. And this is a perfect example of that. Remember, it doesn't have to be exactly the same house, but just to educate them, hey, I'd love to give you 1.4, but I can't, because you got to have a four bathroom for that. And you got to have a huge lot sizes, yours doesn't fall into that category. So under 1.4, it goes. Now here's the final thing you can do in the comps area, you can save your comps in case you need to call them back. You can add these comps to a list of comps that you've checked out. But here's what I would really encourage you to do. Go to actions and hit view comps report. And in a second, we're gonna actually give you our data. So you're going to be able to get this comps report right down here. Here at the bottom left, we actually give you all of our data so not only do you get on this report the subject properties information. So imagine I'm at the house now maybe they told me to come back come by this afternoon. So okay, here I am. I'm at the house now. But I'm at the house with this report. So hey, is is is agony. And Teresa Thanks for letting me come by today. So like we talked about earlier, want to buy our house. I did run some comps earlier, I'd like to show you what I came up with. So here's your property's characteristics. Here's my comps criteria. Here's what we found, we found one that sold for as low as 931 sold as high as one, four. And one the average in this market is about one one. Now the homeowner is going to be like well, I want one for Well, I like to give you one for but that one for is a five bedroom four bathrooms. So right then and there. They know they're not getting one for I don't have to argue right? So they're gonna say, Well, I want one two that well, I can't give you one, two. Why? Because check out this 930 It's identical to your property. Right? Same square footage, oh, most right, almost. I mean, it is a little bit older. So you might get a little bit more out of that. But let me show you where that's that, right. So here's your house, here's where those houses are. Here's the sources that we use. But on the last page, we're going to show each individual property and the photos as well. Right? So now we can show them what that 930 property looks like. And then they're like, Oh, I get where you're coming from. So now instead of arguing, to get that lower price, which you should never do you educate and let them know, I love to give you a full price. But here's why I can't because your house is not similar to what's selling at full price. As matter of fact, based on what they're selling for. They're also 7060 50% there. That's why I'm making this offer. Right? But to make that offer accordingly, right? If I say hey, I'd like to offer you 750 in cash, I still have to be aware of their mortgage, right? So if I offer him 658 cash, that's a quick hang up, because there's a mortgage that needs to be paid, right? So copying with props, or does not just pick up the phone and then make an offer. It's all of this. It's pick up the phone, you're going to talk to the owner about the property, the financial stuff, the situational stuff, they want to make them feel comfortable using that data, then you're going to go in our comp section just like I did, and run your comps. But the idea when it comes to comps is it's not to find a perfect price. It's to use what's sold in the area that's similar to educate them and explain why the offers lower instead of full price, right. So that's how to analyze a deal with prop stream. My name is Burton arrow, I can't thank you enough for giving me the time. So let me give that back to you.

Ariel Herrera 39:38

Thank you so much for and I really appreciate it. Hopefully it was such a useful tool from what you've just shown, all from just getting the leads to actually being able to take notes on them share with your team, as well as analyzing and I was Mind blown with the rehab part as well on the comps. I think it's a really great tool in order for those who are wholesalers Other roles feel to build that relationship with potential leads. We're using data. So thank you so much for your time.

Unknown Speaker 40:06

Oh absolutely. Thanks for having me and I look forward to our next session. So guys, if you have any questions, make sure to bring them up.