Systems to test your Real Estate Deals In New Haven Connecticut
Analyzing real estate deals in the New Haven Connecticut market can be difficult but there are several tools we use to properly evaluate a New Haven Connecticut homes.
Here are steps
We collect all the information from the seller including pictures of the property, any remodeling they have done, how long they have owned the property and most importantly their motivation for selling. I always like to tell a seller we are basically like a pawn shop and we are buying your property for cash, closing quickly so we look to get a bargain. Honesty is key to gaining trust and building a good relationship.
Once a seller knows who we are and what we are about a quick market analyzes of the property using MLS is done. Your realtor can do this for you. Here’s the key strategy when having your realtor run the comps. First search for properties that are active, pending and sold in the last 6 months. If you get nothing else from this article remember this. It’s not a deal if you don’t have at least 3 solid SOLD comps in the last 6 months.
If they agree we then move forward with a Soft Offer over the phone. All without visiting the property.
We then visit the property to evaluate the deal and estimate repair costs. We use several formulas for making an all cash offer here are some of them.
This is assuming the property has a 100,000 (ARV) After Repair Value.
• Wholesale Offer: Retail price x.5 (-$5000 Your Profit) = Purchase Price
• Rehab Offer: Retail price -Repairs (-$30,000 Your Profit) = Purchase Price
Step 4: The Exit Strategy
This will be the price you will use to sell your property. Some of you may ask well why wouldn’t you flip a property if there’s more money to be made. We Wholesale properties to pay the bills and we flip properties to make huge profits. Here are the formulas Clifford Group uses.
• Whole sale: Retail price x.5 = sales price
• Rehabbed price: Retail price is the sale price.
Remember we have 3 solid comps to backup these numbers so are exit strategy is rock solid. To get access to some of our deals come join our Real Estate investing team. We never buy properties we would not Flip ourselves so all of our properties have substantial equity and we have already vetted the deals.
… get on our Buyers List with the form on the right and we’ll send you properties each month with discounts of at least 30% below market value.